Organizational sponsorship and the economics of place: How regional urbanization and localization shape incubator outcomes
Tiago Ratinho (),
Lawrence A. Plummer and
Journal of Business Venturing, 2020, vol. 35, issue 4
Organizational sponsorship impacts new venture emergence and survival prospects by shaping the relationship between new ventures and their surrounding environment. While extant literature offers an explanation as to why heterogeneity in the effectiveness of sponsorship emerges based on the sponsor's characteristics, current theorizing largely overlooks how sponsorship interacts with local economic conditions. This study introduces insights from urban economics to extend organizational sponsorship theory by showing how different types of agglomeration economies affect the effectiveness of organizational sponsorship. We test our hypotheses with a comprehensive database that includes over 46,000 sponsored and non-sponsored firms in the years 1997–2007. Our results reveal organizational sponsorship delays new venture exit when urbanization levels are low, localization is low, and both urbanization and localization are high.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Organizational sponsorship and the economics of place: How regional urbanization and localization shape incubator outcomes (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:35:y:2020:i:4:s0883902618308449
Access Statistics for this article
Journal of Business Venturing is currently edited by S. Venkataraman
More articles in Journal of Business Venturing from Elsevier
Bibliographic data for series maintained by Haili He ().