Employment Growth of New Firms

Elisabeth Garnsey, Petra Gibcus, Erik Stam and Jennifer Telussa

No H200716, Scales Research Reports from EIM Business and Policy Research

Abstract: This paper provides an overview of empirical studies on employment growth in new firms and offers a systematic analysis of new empirical data to address the methodological issues identified. Using a longitudinal database of 354 firms over their first ten years, we examine factors associated with new firm growth in terms of R&D, inter-firm alliancing, new product development, and exporting; these are activities that have been identified as denoting dynamic capabilities. The empirical evidence gives some evidence for the positive association between dynamic capabilities and new firm growth. Inter-firm alliancing is the only indicator of dynamic capabilities that has a positive effect on new firm growth. No moderating effect on dynamic capabilities and growth could be seen to be exerted by the level of human capital and/or firm resources. Environmental dynamism – assumed to be highly relevant in the dynamic capability approach – is not revealed to be a moderating factor affecting the relationship between dynamic capabilities and new firm growth.

Pages: 24 pages
Date: 2007-12-20
New Economics Papers: this item is included in nep-bec, nep-cse and nep-ent
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Citations: View citations in EconPapers (1)

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http://www.entrepreneurship-sme.eu/pdf-ez/H200716.pdf (application/pdf)

Related works:
Working Paper: Employment Growth of New Firms (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eim:papers:h200716

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