A RESOURCE-BASED VIEW OF NEW FIRM SURVIVAL: NEW PERSPECTIVES ON THE ROLE OF INDUSTRY AND EXIT ROUTE

2013 ◽  
Vol 18 (01) ◽  
pp. 1350002 ◽  
Author(s):  
SUSAN COLEMAN ◽  
CARMEN COTEI ◽  
JOSEPH FARHAT
Keyword(s):  
Service Sector ◽  
Life Experience ◽  
Firm Survival ◽  
Service Firms ◽  
New Firms ◽  
Resource Based View ◽  
Factors Affecting ◽  
Exit Route ◽  
New Firm ◽  
The Impact

This article explores factors affecting the survival and exit routes of new firms created in 2004 using data from the Kauffman Firm Survey. We draw upon the Resource-Based View to test several hypotheses regarding the impact of both tangible and intangible resources on new firm survival in both service and non-service firms. We also distinguish between two types of exit: closures (permanently stopped operations) and mergers or acquisitions. Our results reveal that, although service and non-service firms may differ in terms of industry structure, the fundamental resources that contribute to their survival are the same: education, work and life experience and adequate levels of startup financial capital. In spite of these similarities, our results did reveal industry differences in terms of exit. We found serial entrepreneurs in the service sector were more likely to exit through merger or acquisition. Conversely, intellectual property decreased the likelihood of exit through merger or acquisition for non-service firms. Thus, our findings revealed a link between human capital, industry and exit route for this sample of new firms.

scholarly journals Are founder-CEOs resilient to crises? The impact of founder-CEO succession on new firm survival

2021 ◽  
pp. 026624262110507
Author(s):  
Yuji Honjo ◽  
Masatoshi Kato
Keyword(s):  
Chief Executive Officers ◽  
Chief Executive ◽  
Firm Survival ◽  
Ceo Succession ◽  
New Firms ◽  
Macroeconomic Conditions ◽  
Japanese Firms ◽  
New Firm ◽  
Executive Officers ◽  
The Impact

This article explores whether new firms managed by founder-chief executive officers (CEOs) are more likely to survive than those managed by successor-CEOs in times of crisis. Drawing on the concept of ‘resilience’ to adversity, we argue that founder-CEOs increase the likelihood of new firm survival, especially in times of crisis. Using a sample of Japanese firms founded during the 2003–2010 period, we examine the impact of founder-CEO succession on new firm survival. The analysis shows that new firms managed by founder-CEOs are less likely to liquidate than those managed by successor-CEOs, especially during the 2008–2009 financial crisis. This suggests that founder-CEOs are more resilient to crises than successor-CEOs. In contrast, new firms managed by successor-CEOs are more likely to exit via merger than those managed by founder-CEOs, regardless of macroeconomic conditions. These findings are robust after controlling for the endogeneity of CEO succession.

FACTORS AFFECTING THE PERFORMANCE OF COURIER SERVICE INDUSTRY: A SURVEY OF COURIER COMPANIES IN KENYA

2017 ◽  
Vol 1 (1) ◽  
pp. 44
Author(s):  
Jacinta Wahu Nyaga
Keyword(s):  
Customer Service ◽  
Service Sector ◽  
Sampling Technique ◽  
Survey Study ◽  
Service Firms ◽  
Sampling Frame ◽  
Statistical Research ◽  
Individual Factor ◽  
Factors Affecting ◽  
Courier Service

Purpose: The study is an assessment of the factors affecting the performance of courier companies in Kenya.Methodology: A descriptive survey study design was used. The population of this study was 134 courier firms. The sampling frame consisting of 134 firms was obtained from the CCK website.  Stratified random sampling technique was used to select the sample. A sample of 68 firms was considered representative and they were selected by the use of the lottery method. The researcher opted for a questionnaire as a data collection tool. Data was analyzed by the use of descriptive statistics and specifically, means, frequencies and percentages. The analysis tools were simple tabulations and presentations using spreadsheets such as excel. The data was then presented using tables, charts and narratives.Results: The study findings indicate that the companies have invested heavily into the training of their employees. Thus having in place a properly trained workforce can be said to be a factor that has contributed to the success being experienced in the courier service sector. From the study it emerged that there was high motivation among employees in courier firms as evidenced by their attitude towards work itself and promotion factors. However, they were not very happy with the pay factor. It is important to note that it would have been against logical expectation if the findings on the pay issue were different. The courier service firms come out as having in place reliable and very good customer service. The companies take into considerations suggestion made by the customer and prospective customers into the designing of products and services.  ICT is another factor that attributes to the phenomenal growth of the courier service firms. Though the current state of infrastructure is bad, it seems to favor the growth of courier service firms. The courier firms have taken the challenge of poor infrastructure and turned it into an opportunity. In so doing, they have invested in motor bikes in order to beat the traffic jam challenge. This has enabled them to meet the demands of their clients increasing their popularity and hence more business.Unique contribution to theory, practice and policy: The study recommended that future statistical research taking into account regression and correlation analysis can be conducted on the effects of the noted factors on the various growth indicators such as market share, revenues and profits. Such a study would verify or repute the findings of this study. Future study can also be conducted on an individual factor identified in the conceptual framework of this study.

The Impact of COVID-19 on the Size Distribution of New Firms in Turkey

2022 ◽  
pp. 190-215
Author(s):  
Yigit Aydogan
Keyword(s):  
Size Distribution ◽  
The Other ◽  
New Firms ◽  
Firm Formation ◽  
New Firm Formation ◽  
Turkish Economy ◽  
Initial Drop ◽  
New Firm ◽  
The Impact

A surge in new firm registrations have been one of the most intriguing outcomes of the economic turbulence caused by the COVID-19 pandemic. Turkey followed a similar pattern to many other economies that observed an initial drop and a rapid V-shaped recovery of entry when the virus hit the country. However, the size distribution of new firms has been very different. While others experience a strong rise in smaller entrants, larger firms have dominated the pack in Turkey. As a widely-known long-term problem of the Turkish economy, which has been accused of causing the stagnation of growth, miniscule firms have been losing their weight rapidly among the entrants. It revives lost hopes for the future of the economy and also motivates questions regarding the other determinants of such transformation in new firm formation.

Entrepreneurs’ planning behavior and new firm performance

2020 ◽  
Vol 18 (3) ◽  
pp. 307-334
Author(s):  
Ignacio Contin-Pilart ◽  
Martin Larraza-Kintana ◽  
Victor Martin-Sanchez
Keyword(s):  
Firm Performance ◽  
Family Background ◽  
External Support ◽  
First Year ◽  
New Firms ◽  
Cross Sectional ◽  
Content Type ◽  
Institutional Forces ◽  
New Firm ◽  
The Impact

Purpose Drawing on institutional logics theory, this paper aims to examine the determinants of entrepreneurs’ planning behavior in the first years of 212 Spanish new firms. Additionally, this study identifies four different planning profiles: systematic planner, early planner, late planner and non-planner. Design/methodology/approach This study’s data structure is a (yearly) pooled cross-sectional time series. This paper investigates the determinants of planning behaviors among entrepreneurs, as well as the impact of that activity on new firm performance (i.e. employment growth). Findings The results confirm the relevance of institutional forces in explaining the involvement of founders of new firms upon planning activities. Institutional factors, in the form of public external support seem to explain early- and systematic-planner behavior while the influence of entrepreneurial family background does so with late-planner behavior. Originality/value The authors focus their attention on two key moments of a new venture’ life: the first year of operation and once the firm has overcome the four-year hurdle that is often used to distinguish new from established businesses. Four different patterns emerge: systematic planner (those who consistently plan over time), early planner (those who engage in planning activities in the early moments of the firm’s life but not later), late planner (those who do not plan at the beginning but end up conducting planning activities a few years later) and non-planner (those who never get involved in planning activities). This new division is an interesting additional feature of this study.

The Role of Information and Communications Technology (ICT) in Enhancing Service Sector Productivity in Palestine

2019 ◽  
Vol 27 (1) ◽  
pp. 47-65 ◽  
Author(s):  
Rabeh Morrar ◽  
Islam Abdeljawad ◽  
Samer Jabr ◽  
Adnan Kisa ◽  
Mustafa Z. Younis
Keyword(s):  
Labor Productivity ◽  
Service Sector ◽  
West Bank ◽  
Information And Communications Technology ◽  
Service Firms ◽  
Geographical Differences ◽  
The West ◽  
Cross Sectional ◽  
Lower Productivity ◽  
The Impact

This article discusses the productivity of the Information and Communication Technology (ICT) sector using cross-sectional data from 793 service firms in Palestine. The authors have examined the impact of ICT growth on service sector productivity in Palestine using a set of indicators for ICT including internet usage, e-commerce, networks, websites, and use of “smart” phones. They find that using ICT (mainly Internet) in commerce (e-commerce) is one of the most important levers of labor productivity among service firms. Service firms that are less ICT-intensive are less productive than more ICT-intensive firms; moreover, the use of mobile phones for services other than send-and-receive calls, highly improves the labor productivity of service firms. Conversely, using a website and computer network does not positively affect the labor productivity. Regarding geographical differences in labor productivity, the analysis shows that firms in Jerusalem are characterized by higher productivity than firms in the West Bank, while firms in Gaza have a lower productivity compared to firms in the West Bank.

scholarly journals Board Characteristics and Intellectual Capital Performance: A Comparison of Service vs. Manufacturing Firms in India

2019 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
G Bharathi Kamath
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Intellectual Capital ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Service Firms ◽  
Board Characteristics ◽  
Preliminary Study ◽  
The Impact

<p><strong>Purpose: </strong>This study aims at analysing the board characteristics of select manufacturing and service firms in India. It attempts to explore whether these characteristics influence Intellectual capital (IC) efficiency of service sector firms or manufacturing firms.</p><p><strong>Design: </strong>The study uses panel data and multiple regression to examine the firms’ performance. The period of study is three years from 2015-16 to 2017-18; thirty firms each from manufacturing and service sector is taken for study.</p><p><strong>Findings: </strong>The empirical evidence is quite interesting. The board characteristics of both groups have varied differences. It can also be observed clearly that the impact of board characteristics on IC performance is more in the service sector than in the manufacturing sector.</p><p><strong>Research limitations/implications: </strong>the study focusses only on select firms from manufacturing and service sector as a preliminary study. The study can be expanded to cover sectors and industries.</p><div><p><strong>Originality and value: </strong>There are several research studies that try to explore the impact of corporate governance on the financial performance of firms. However, there are none which looks into their impact on the intangible performance of firms.</p></div>

scholarly journals FACTORS AFFECTING THE PERFORMANCE OF COURIER SERVICE INDUSTRY: A SURVEY OF COURIER COMPANIES IN KENYA

2017 ◽  
Vol 1 (1) ◽  
pp. 44-60 ◽  
Author(s):  
Jacinta Wahu Nyaga
Keyword(s):  
Customer Service ◽  
Service Sector ◽  
Sampling Technique ◽  
Survey Study ◽  
Service Firms ◽  
Sampling Frame ◽  
Statistical Research ◽  
Individual Factor ◽  
Factors Affecting ◽  
Courier Service

Purpose: The study is an assessment of the factors affecting the performance of courier companies in Kenya.Methodology: A descriptive survey study design was used. The population of this study was 134 courier firms. The sampling frame consisting of 134 firms was obtained from the CCK website.  Stratified random sampling technique was used to select the sample. A sample of 68 firms was considered representative and they were selected by the use of the lottery method. The researcher opted for a questionnaire as a data collection tool. Data was analyzed by the use of descriptive statistics and specifically, means, frequencies and percentages. The analysis tools were simple tabulations and presentations using spreadsheets such as excel. The data was then presented using tables, charts and narratives.Results: The study findings indicate that the companies have invested heavily into the training of their employees. Thus having in place a properly trained workforce can be said to be a factor that has contributed to the success being experienced in the courier service sector. From the study it emerged that there was high motivation among employees in courier firms as evidenced by their attitude towards work itself and promotion factors. However, they were not very happy with the pay factor. It is important to note that it would have been against logical expectation if the findings on the pay issue were different. The courier service firms come out as having in place reliable and very good customer service. The companies take into considerations suggestion made by the customer and prospective customers into the designing of products and services.  ICT is another factor that attributes to the phenomenal growth of the courier service firms. Though the current state of infrastructure is bad, it seems to favor the growth of courier service firms. The courier firms have taken the challenge of poor infrastructure and turned it into an opportunity. In so doing, they have invested in motor bikes in order to beat the traffic jam challenge. This has enabled them to meet the demands of their clients increasing their popularity and hence more business.Unique contribution to theory, practice and policy: The study recommended that future statistical research taking into account regression and correlation analysis can be conducted on the effects of the noted factors on the various growth indicators such as market share, revenues and profits. Such a study would verify or repute the findings of this study. Future study can also be conducted on an individual factor identified in the conceptual framework of this study.

Survival in a new industry: marijuana, venture structure and outcomes

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karen Nicholas ◽  
Curtis R. Sproul ◽  
Kevin Cox
Keyword(s):  
Supply Chain ◽  
Holistic Approach ◽  
Firm Survival ◽  
New Firms ◽  
Content Type ◽  
Firm Structure ◽  
Two Factors ◽  
Using Data ◽  
The Impact ◽  
New Industry

Purpose The purpose of this study is to explore how new firms enter a new industry and which structure will support survival. Essentially, the study examines the extent to which new firms choose to be broad with regard to the industry supply chain and deep with regard to their market presence. Based on these two structural decisions, each one is examined independently and in conjunction to discover which aspects support survival. Design/methodology/approach A quantitative approach was adopted, consisting of using data supplied by the state of Colorado. More specifically, the study draws on empirical data that identifies which license type (grower, manufacturer and retailer) each firm chose to get and how many retail outlets the firm chose to operate. Findings The findings reveal that firms that cover the breadth of the supply chain are twice as likely to survive, while a broad market presence increases the risk of exit by 2.5 times. When the two factors were combined, it was firms with broad integration and deep market presence that had the highest chance of survival, as opposed to firms with intuition. A deep market presence seemed to accentuate the effect of integration, increasing the risk when the firm was not integrated, while increasing the survival rate when the firm was integrated. Research limitations/implications This industry is quite new and afforded a unique opportunity to examine the impact of firm structure on survival. However, it may not be generalizable to other industries. Practical implications The present analysis argues that firms must adopt a holistic approach to their firm structure, because there are combinatorial effects at play. That is, while one specific strategy may increase survival, other strategies may impact firm survival. Examining and understanding the interplay of firm decisions are critical for firm survival. Originality/value Because of the lack of the formation of new industries, the authors’ understanding of the impact of firm structure on survival is limited. This unique context afforded the opportunity to empirically examine how firms can increase their chance of survival based on two aspects of firm structure: the breadth of the supply chain and the depth of the firm’s market presence.

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