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Employer Size and Transition to Entrepreneurship: Variations According to Organizational Position

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  • Tsuchiya, Ryuichiro

Abstract

Although transition to entrepreneurship is a central subject in entrepreneurial studies, there is little research on its link with previous employer firm size. This study examines this relationship by utilizing a rich data set representing the entire Taiwanese labor market. While we found that smaller firms produce more entrepreneurs for all employees, the transitional probabilities of middle managers are higher in larger firms, indicating a specific firm size effect caused by organizational characteristics associated with position. In larger firms, the wide range of information that middle managers process facilitates entrepreneurial discoveries, and intense competition for senior management positions lowers opportunity costs.

Suggested Citation

  • Tsuchiya, Ryuichiro, 2006. "Employer Size and Transition to Entrepreneurship: Variations According to Organizational Position," Discussion Papers 2006-17, Graduate School of Economics, Hitotsubashi University.
  • Handle: RePEc:hit:econdp:2006-17
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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/16979/1/070econDP06-17.pdf
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    References listed on IDEAS

    as
    1. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
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    More about this item

    Keywords

    Entrepreneurship; Firm Size; Entry; Spin-off; Organizational Position;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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