DETERMINANTS OF CAPITAL STRUCTURE IN BUSINESS START-UPS: THE ROLE OF NONFINANCIAL STAKEHOLDER RELATIONSHIP COSTS

2010 ◽  
Vol 33 (4) ◽  
pp. 487-517 ◽  
Author(s):  
Tom Franck ◽  
Nancy Huyghebaert
Keyword(s):  
Capital Structure ◽  
Start Ups ◽  
Stakeholder Relationship

scholarly journals Innovation Capabilities and the Performance of Start-Ups in Korea: The Role of Government Support Policies

2021 ◽  
Vol 13 (11) ◽  
pp. 6009
Author(s):  
Se-Kyoung Choi ◽  
Sangyun Han ◽  
Kyu-Tae Kwak
Keyword(s):  
Firm Performance ◽  
Financial Support ◽  
Political Support ◽  
Sustainable Growth ◽  
Government Support ◽  
Role Of Government ◽  
Positive Effects ◽  
Start Up ◽  
Start Ups

What kind of capacity is needed to improve the performance of start-ups? How effective are government support policies in improving start-up performance? Start-ups are critical firm group for ensuring the prospective and sustainable growth of an economy, and thus many countries’ governments have established support policies and they are likely to engage more widely in forward-looking political support activities to ensure further growth and expansion. In this paper, the effect of innovation capabilities and government support policies on start-up performance is examined. We used an unbalanced panel data analysis with a random effect generalized least squares. We investigated the effect of government support policies on 4368 Korean start-ups. The findings indicated that technology and knowledge capabilities had positive effects on the sales performance of start-ups, and government financial support positively affected the relationship between knowledge capability and firm performance. However, when government financial support increased, marketing capability was negatively associated with firm performance. These results demonstrate the significant role of government financial support, including its crowding in but also its crowding out effect. Practical implications: To be more effective, governments should employ innovation-driven entrepreneurship policy approaches to support start-ups. To improve their performance, start-ups need to increase their technology and knowledge capabilities. This study extends recent efforts to understand more fully the effect of government support policies on start-ups differing in their technology, knowledge, and marketing capabilities.

scholarly journals It takes two to tango: the interplay between decision logics, communication strategies and social media engagement in start-ups

2021 ◽  
Author(s):  
Christian Rudeloff ◽  
Stefanie Pakura ◽  
Fabian Eggers ◽  
Thomas Niemand
Keyword(s):  
Social Media ◽  
Comparative Analysis ◽  
Fuzzy Set ◽  
Exploratory Study ◽  
Communication Strategies ◽  
Qualitative Comparative Analysis ◽  
Communication Models ◽  
Social Media Engagement ◽  
Start Ups

AbstractThis manuscript analyzes start-ups’ usage of different communication strategies (information, response, involvement), their underlying decision logics (effectuation, causation, strategy absence) and respective social media success. A multitude of studies have been published on the decision logics of entrepreneurs as well as on different communication strategies. Decision logics and according strategies and actions are closely connected. Still, research on the interplay between the two areas is largely missing. This applies in particular to the effect of different decision logics and communication models on social media success. Through a combination of case studies with fuzzy-set Qualitative Comparative Analysis this exploratory study demonstrates that different combinations of causal and absence of strategy decision logics can be equally successful when it comes to social media engagement, whereas effectuation is detrimental for success. Furthermore, we find that two-way-communication is essential to create engagement, while information strategy alone cannot lead to social media success. This study provides new insights into the role of decision logics and connects effectuation theory with the communication literature, a field that has been dominated by causal approaches.

scholarly journals Institutional quality and the capital structure of microfinance institutions: the moderating role of board gender diversity

2021 ◽  
pp. 1-21
Author(s):  
Michael Adusei ◽  
Beatrice Sarpong-Danquah
Keyword(s):  
Capital Structure ◽  
Institutional Environment ◽  
Gender Diversity ◽  
Institutional Quality ◽  
Microfinance Institutions ◽  
Female Representation ◽  
Long Run ◽  
Board Gender Diversity ◽  
The Relationship

Abstract We test the effect of institutional quality on capital structure in the microfinance setting. In doing this, we rely on data from 532 microfinance institutions (MFIs) located in 73 countries dotted across the six microfinance regions in the world. We observe that institutional quality exhibits a robust negative and statistically significant relationship with capital structure in both the short and long run, implying that MFIs in countries with a better institutional environment are less likely to utilize more debt. Our moderation analysis furnishes us with evidence that the presence of women on the board of an MFI significantly moderates the relationship between institutional quality and its capital structure. We show that in the presence of more female representation on the boards of MFIs, the tendency of MFIs using less debt is higher.

What's New in the Launching of Start-ups?

2009 ◽  
Vol 23 (2) ◽  
pp. 133-137 ◽  
Author(s):  
Diego Matricano
Keyword(s):  
New Ventures ◽  
Business Environment ◽  
Economic Role ◽  
Globalized Economy ◽  
New Business ◽  
New Thinking ◽  
Experimental Laboratory ◽  
Start Ups ◽  
Research Centres

The exploitation of knowledge and experience is increasingly important to companies operating in the globalized economy, faced with intense competition and striving to make headway in difficult markets. If such exploitation is important for existing companies, able to develop their own knowledge from previous experience, it is critical for new ventures that have no direct real-world experience on which to draw. Would-be entrepreneurs now operate in a very different business environment from that of their predecessors and they need new forms of entrepreneurship education and new methods of pre-launch trial and analysis for start-ups. The transition from ‘nature’ to ‘nurture’ in the approach to and perception of entrepreneurship, coupled with the increasingly engaged economic role of higher education institutions and research centres can be manipulated effectively to improve the prospects for success of high-expectation entrepreneurs. This article demonstrates how Curley and Formica's model of the experimental laboratory for would-be entrepreneurs responds to the new business environment and the new thinking.

Is Co-working Increase Survivability? Study on how Collaborating and Networking Facilitates Open Innovation Process for Startups

2020 ◽  
Vol 7 (2) ◽  
pp. 68-75
Author(s):  
Elissa Dwi Lestari
Keyword(s):  
Open Innovation ◽  
Deep Understanding ◽  
Innovation Process ◽  
Future Research ◽  
Innovation Ecosystem ◽  
Quantitative Studies ◽  
Multiple Case ◽  
Start Ups ◽  
Community Manager

Startups, as they are bounded to their liabilities of newness and smallness, need to collaborate extensively with their external partners through the open innovation process. This study aims to depict Co-working space's pivotal role in building up a working innovation ecosystem that facilitates open innovation for startups. To get a more deep understanding of the phenomena, this study used an exploratory study based on three case studies of Co-working spaces operated in the Jakarta region. The study shows that the open innovation process among startups is not naturally existed, but instead, it is purposefully designed by the role of a community manager who acts as the ecosystem catalyst. The community manager becomes the ecosystem enablers that facilitate the networking process by connecting members. As a result, these activities will help the emerging of mutual connection and collaboration processes among members that empower open innovation among startups members. The multiple-case design makes the study conclusions might be difficult to generalize. Future research, including quantitative studies, will help the conclusions examination and the knowledge enrichment of start-ups' open innovation process. This paper will enrich the knowledge concerning how Co-working spaces member seizing opportunities that lead to the open innovation process.

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