Title
The effect of the innovative environment on exit of entrepreneurial firms
Abbreviated Journal Title
Strateg. Manage. J.
Keywords
entrepreneurship; technological intensity; industry evolution; innovation; MARKET-STRUCTURE; TECHNOLOGICAL OPPORTUNITIES; PRODUCT DIFFERENTIATION; EVOLUTION; SURVIVAL; INDUSTRY; GROWTH; ENTRY; DIFFUSION; KNOWLEDGE; Business; Management
Abstract
To foster 'creative destruction,' entrants must survive the turbulent conditions they face in their first crucial years in the industry. We investigate how the external knowledge milieu of an entrant, conceptualized as its innovative environment, causes systematic variation in survival patterns. We test our model from 3,431 firms in 33 industries over 80 years. We depict the innovative environment along two knowledge-related dimensions, namely technology regime and technology intensity. While the aligned state of the innovative environment, where product innovation exists in tandem with abundant innovation opportunities, promotes entrant survival, we find that this beneficial effect is more pronounced for small entrants due to a possible mitigation of scale disadvantages. Copyright (c) 2006 John Wiley & Sons, Ltd.
Journal Title
Strategic Management Journal
Volume
27
Issue/Number
6
Publication Date
1-1-2006
Document Type
Article
DOI Link
Language
English
First Page
519
Last Page
539
WOS Identifier
ISSN
0143-2095
Recommended Citation
"The effect of the innovative environment on exit of entrepreneurial firms" (2006). Faculty Bibliography 2000s. 6542.
https://stars.library.ucf.edu/facultybib2000/6542
Comments
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