Founded in adversity: Operations-based survival strategies of ventures founded during a recession

Siri Terjesen, Maria Guedes and Pankaj C. Patel

International Journal of Production Economics, 2016, vol. 173, issue C, 161-169

Abstract: We examine the survival of 404 new ventures founded during the 2008 recession. We find that industry explains a significant but small percentage of variance in survival (2.81 percent), and therefore focus on which operations-related actions could enhance ventures’ odds of survival. We find marginally significant support for our hypotheses that a venture founded during a recession is more likely to survive if it increases its production efficiency, increases both its production efficiency and variable costs, or increases both its production efficiency and fixed costs in property, plant and equipment. Our findings demonstrate that operational decisions are key determinants of survival for ventures founded during a recession.

Keywords: New venture survival; Production efficiency; Operating costs; Fixed asset investment; Recession (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527315005198
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:173:y:2016:i:c:p:161-169

DOI: 10.1016/j.ijpe.2015.12.001

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().