Is success hereditary? Evidence on the performance of spawned ventures

Johannes Dick (), Katrin Hussinger, Boris Blumberg () and John Hagedoorn ()

Small Business Economics, 2013, vol. 40, issue 4, 931 pages

Abstract: A common phenomenon in entrepreneurship is that employees turn away from employment to found their own businesses. Prior literature discusses the former employers’ characteristics that influence the creation of entrepreneurial ventures. An investigation of whether these characteristics also affect the success of the spawned ventures is missing so far. This paper contributes to the literature by showing that entrepreneurial ventures spawned by well performing firms are financially more successful than ventures stemming from poorly performing firms. This suggests that spawned entrepreneurs are able to exploit valuable knowledge from their previous employers which impacts their ventures’ performance positively. The analysis is based on a linked employee–employer data set for the Netherlands for the period 1999–2004. Copyright The Author(s) 2013

Keywords: Entrepreneurship; Entrepreneurial spawning; Start-ups; Firm performance; L26; M13; L25 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (9)

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Working Paper: Is success hereditary? Evidence on the performance of spawned ventures (2011)
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DOI: 10.1007/s11187-011-9394-8

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