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Colocation of Entrepreneurs and New Firm Survival : Role of New Firm Founder’s Experiential Relatedness to Local Entrepreneurs

Tavassoli, Sam LU ; Jienwatcharamongkhol, Viroj LU and Arenius, Pia (2023) In Entrepreneurship: Theory and Practice 47(4). p.1421-1459
Abstract

Geographical clustering (colocation) influences new firm survival; however, not all new firms within a cluster are impacted equally. In this paper, we elaborate on how the colocation of local entrepreneurs may have different influences on new firm founder's learning depending on his/her fit, in terms of his/her experiential relatedness, to that of local entrepreneurs. We then associate such founder’s learning with the higher survival of his/her new firm. We test our hypotheses using a matched founder-firm dataset that covers the population of the knowledge-intensive business service sector in Sweden during 2001–2012. We find support for our propositions concerning the relatedness of new firm founders’ experiential background to that of... (More)

Geographical clustering (colocation) influences new firm survival; however, not all new firms within a cluster are impacted equally. In this paper, we elaborate on how the colocation of local entrepreneurs may have different influences on new firm founder's learning depending on his/her fit, in terms of his/her experiential relatedness, to that of local entrepreneurs. We then associate such founder’s learning with the higher survival of his/her new firm. We test our hypotheses using a matched founder-firm dataset that covers the population of the knowledge-intensive business service sector in Sweden during 2001–2012. We find support for our propositions concerning the relatedness of new firm founders’ experiential background to that of local entrepreneurs. Specifically we find that high level of relatedness to local entrepreneurs enhances the survival rate of a new firm started by a novice founder, whereas intermediate level of relatedness suits better for a new firm started by an experienced founder.

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author
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organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
colocation, entrepreneurial learning, entrepreneurial performance, experiential relatedness, new firm survival
in
Entrepreneurship: Theory and Practice
volume
47
issue
4
pages
1421 - 1459
publisher
Wiley-Blackwell
external identifiers
  • scopus:85123244998
ISSN
1042-2587
DOI
10.1177/10422587211057029
language
English
LU publication?
yes
id
407a9786-70a1-4f08-b2fa-1cf572cd784d
date added to LUP
2022-03-21 15:16:18
date last changed
2024-05-08 06:06:02
@article{407a9786-70a1-4f08-b2fa-1cf572cd784d,
  abstract     = {{<p>Geographical clustering (colocation) influences new firm survival; however, not all new firms within a cluster are impacted equally. In this paper, we elaborate on how the colocation of local entrepreneurs may have different influences on new firm founder's learning depending on his/her fit, in terms of his/her experiential relatedness, to that of local entrepreneurs. We then associate such founder’s learning with the higher survival of his/her new firm. We test our hypotheses using a matched founder-firm dataset that covers the population of the knowledge-intensive business service sector in Sweden during 2001–2012. We find support for our propositions concerning the relatedness of new firm founders’ experiential background to that of local entrepreneurs. Specifically we find that high level of relatedness to local entrepreneurs enhances the survival rate of a new firm started by a novice founder, whereas intermediate level of relatedness suits better for a new firm started by an experienced founder.</p>}},
  author       = {{Tavassoli, Sam and Jienwatcharamongkhol, Viroj and Arenius, Pia}},
  issn         = {{1042-2587}},
  keywords     = {{colocation; entrepreneurial learning; entrepreneurial performance; experiential relatedness; new firm survival}},
  language     = {{eng}},
  number       = {{4}},
  pages        = {{1421--1459}},
  publisher    = {{Wiley-Blackwell}},
  series       = {{Entrepreneurship: Theory and Practice}},
  title        = {{Colocation of Entrepreneurs and New Firm Survival : Role of New Firm Founder’s Experiential Relatedness to Local Entrepreneurs}},
  url          = {{http://dx.doi.org/10.1177/10422587211057029}},
  doi          = {{10.1177/10422587211057029}},
  volume       = {{47}},
  year         = {{2023}},
}