The Determinants of the Growth of Japanese Start-ups: A Resource-based View Analysis

Nobuaki Hamaguchi and Joao Carlos Ferraz
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Nobuaki Hamaguchi: Research Institute for Economics and Business Administration, Kobe University and Research Institute of Economy, Trade and Industry, JAPAN
Joao Carlos Ferraz: Institute of Economics, Federal University of Rio de Janeiro, BRAZIL

No DP2025-05, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: The objective of this article is to determine and analyse the factors behind the growth of Japanese startups. The framework of reference is derived from the Resource Based View of the firm (Penrose 2009) and the quantitative analysis relies on data from a survey carried out in 2022 with 753 Japanese startups. The article assesses internal (entrepreneur, workforce, innovation) and external (finance, knowledge access and location) resources under uncertainty. Econometric findings suggest that larger but younger firms with a domestic market orientation, and experienced entrepreneurs drive growth, while intellectual property ownership and equity financing for fixed capital investment positively impact economic success. Market-product mismatches and weak supplier quality hinder growth, and Tokyo's location benefits ICT start-ups but not others. Employment growth, though weakly linked to sales growth is strongly influenced by business confidence and access to skilled labour and investors. These findings provide strategic insights to inform policies to foster start-up success in Japan.

Keywords: Internal resource; External resource; Uncertainty (search for similar items in EconPapers)
JEL-codes: G32 M13 O32 R58 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2025-03
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