Abstract
This paper investigates the relationship between the level of pre-entry experience of managers and founders, and the survival of their new firms. Using a comprehensive dataset covering the entire Danish labor market from 1980 to 2000, we are able to trace prior activities of all employees working in all Danish start-ups with at least one employee. We examine whether spin-offs from surviving parents, spin-offs from exiting parents or other start-ups are more likely to survive. Moreover, we investigate whether firms managed and founded by teams with higher levels of industry-specific experience have a higher chance of surviving. We find that spin-offs from a surviving parent and to a lesser degree industry-specific experience positively affects the likelihood of survival. We also find that spin-offs from a parent that exits are less likely to survive than either spin-offs from surviving parents or other start-ups.
Original language | English |
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Journal | Industry and Innovation |
Volume | 14 |
Issue number | 5 |
Pages (from-to) | 497-511 |
Number of pages | 15 |
ISSN | 1366-2716 |
DOIs | |
Publication status | Published - 2007 |
Keywords
- Organizational routines
- Pre-entry experience
- Survival of new firms
- Spin-offs