Early employment expansion and long-run survival

Examining employee turnover as a context factor

Pernille Gjerløv-Juel, Christina Guenther

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

We investigate under which circumstances early employment growth translates into greater long-run survival. Drawing on Penrose's growth theory, we suggest that the relationship between early employment growth and long-run survival is conditional on employee turnover. We argue that higher employee turnover reduces joint experience in the firm and disrupts the development and eventual exploitation of the firm's productive opportunity set, thereby reducing long-term utilization of early employment expansion. These arguments suggest that the firm's ability to realize long-term benefits of early employment growth is contingent upon low employee turnover following this initial expansion. Using the Danish Integrated Database for Labor Market Research, we show that only when employee turnover is low, will early employment growth lead to higher survival in the long run.
OriginalsprogEngelsk
TidsskriftJournal of Business Venturing
Vol/bind34
Udgave nummer1
Sider (fra-til)80-102
ISSN0883-9026
DOI
StatusUdgivet - 19 jan. 2019

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Personnel
Plant expansion
Employee turnover
Factors
Employment growth
Labour market
Integrated
Penrose
Opportunity sets
Market research
Growth theory
Exploitation
Data base

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Early employment expansion and long-run survival : Examining employee turnover as a context factor. / Gjerløv-Juel, Pernille; Guenther, Christina.

I: Journal of Business Venturing, Bind 34, Nr. 1, 19.01.2019, s. 80-102.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

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