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

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. 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 Published: 2002 URL: http://www.business.uiuc.edu/Working_Papers/papers/02−0102.pdf 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 Dept. of Marketing University of Central Florida Orlando, Fl. Raj Echambadi Dept. of Marketing University of Central Florida Orlando, Fl. Rajshree Agarwal Dept. of Business Administration University of Illinois Urbana-Champaign, IL. Bisakha Sen Dept. of Economics University of Central Florida Orlando, Fl. Please address correspondence to MB Sarkar Assistant Professor Dept. of Marketing University of Central Florida Orlando, FL 32816 Email: [email protected] Tel: (407) 823 5699 All authors have contributed equally. The sequence of authorship was decided by a draw of straws. The “When, Where, and How” of Entrant Survival: The Effects of Knowledge Regime, Technological Intensity and Start-Up Size on New Venture Survival 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 canIn 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.