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"The "when, where, and how" of entrant survival: the effects of knowledge regime, technological intensity and start-up size on new venture survival"

MB Sarkar, Raj Echambadi, Rajshree Agarwal, and Bisakha Sen

 

First Author :

MB Sarkar
Marketing
University of Central Florida
College of Business Administration
P.O. Box 161400
Orlando, FL 32816-1400
USA

msarkar@bus.ucf.edu


Second Author :

Raj Echambadi
Marketing
University of Central Florida
College of Business Administration
P.O. Box 161400
Orlando, FL 32816-1400
USA

rechambadi@bus.ucf.edu


Third Author :

Rajshree Agarwal
Business Administration
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

agarwalr@uiuc.edu

http://www.business.uiuc.edu/faculty/agarwal.html


Fourth Author :

Bisakha Sen
Economics
University of Central Florida
College of Business Administration
P.O. Box 161400
Orlando, FL 32816-1400
USA

 
 
Abstract :
 
In this research, we seek to advance the understanding of heterogeneity in entrant survival rates. We suggest that the innovative environment at the time of entry can explain the variation in likelihood of survival for entrants. We conceptualize innovative environment in terms of two dimensions: the technological regime operating in a specific industry at the time of entry, and the technology intensity in the specific industry, and argue that the coexistence of certain states of these two dimensions of the innovative environment is important in explaining differences in entrant survival rates. Further, we propose that start-up size differentially impacts the relationship between the innovative environment at the time of entry and entrant survival. Empirical tests done on a unique longitudinal dataset of 3431 firms in 33 product innovations spanning over 80 years reveal support for the contingency hypothesis. Theoretical and practical implications of the findings are discussed.
 
 
Footnotes & Acknowledgements :
 
All authors have contributed equally. The sequence of authorship was decided by a draw of straws All authors contributed equally. The names are arranged in alphabetical order
 
 
Manuscript Received : 2002
Manuscript Published : 2002
 
 
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