Remember Me
Or use your Academic/Social account:


Or use your Academic/Social account:


You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.


Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message


Verify Password:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Siepel, Josh; Cowling, Marc; Coad, Alex (2017)
Publisher: Elsevier
Journal: Technovation
Languages: English
Types: Article
Subjects: Engineering(all), HB0615, HD0072, Management of Technology and Innovation
This paper considers the impact of non-founder human capital on high-tech firms' long-run growth and survival. Drawing upon threshold theory, we explore how lack of access to complementary skills at different points in the life course impacts founders' thresholds for exit. We examine these factors using a unique longitudinal dataset tracking the performance and survival of a sample of UK high-tech firms over thirteen years as the firms move from youth into maturity. We find that firms that survive but do not grow are characterized by difficulty in accessing complementary managerial skills in youth, while firms that grow but subsequently exit are characterized by shortfalls of specialized complementary skills during adolescence. Firms that grow and survive do not report skills shortfalls. We discuss the implications of these resource constraints for entrepreneurs’ decisions to persist or exit through the life course.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • Andries, P., Czarnitzki, D., 2014. Small firm innovation performance and employee involvement. Small Bus. Econ. 43 (1), 21-38.
    • Antolín-López, R., Céspedes-Lorente, J., García-de-Frutos, N., Martínez-del-Río, J., Pérez-Valls, M., 2015. Fostering product innovation: differences between new ventures and established firms. Technovation 41-42, 25-37.
    • Aspelund, A., Berg-Utby, T., Skjevdal, R., 2005. Initial resources' influence on new venture survival: a longitudinal study of new technology-based firms. Technovation 25 (11), 1337-1347.
    • Balcaen, S., Manigart, S., Buyze, J., Ooghe, H., 2012. Firm exit after distress: differentiating between bankruptcy, voluntary liquidation and M & A. Small Bus. Econ. 39 (4), 949-975.
    • Baron, J., Hannan, M., Burton, M., 1999. Building the iron cage: determinants of managerial intensity in the early years of organizations. Am. Sociol. Rev. 64 (4), 527-547.
    • Baron, J., Hannan, M., Burton, M., 2001. Labor pains: Change in organizational models and employee turnover in young high-tech firms. Am. J. Sociology 106 (4), 960-1012.
    • Bates, T., 2005. Analysis of young, small firms that have closed: delineating successful from unsuccessful closures. J. Bus. Ventur. 20 (3), 343-358.
    • Blaydon, C., Keogh, W., Evans, G., 1999. Managerial skills development in R & D based NTBFs. Int. J. Entrep. Behav. Res. 5 (4), 173-190.
    • Boyd, B.K., Gove, S., Hitt, M.A., 2005. Consequences of measurement problems in strategic management research: the case of Amihud and Lev. Strateg. Manag. J. 26 (4), 367-375.
    • Brinckmann, J., Salomo, S., Gemuenden, H.G., 2011. Financial Management Competence of Founding Teams and Growth of New Technology Based Firms. Entrep. Theory Pract. 35 (2), 217-243.
    • Brown, R., Mason, C., 2014. Inside the high tech black box: a critique of technology entrepreneurship policy. Technovation 34 (12), 773-784.
    • Brüderl, J., Schussler, R., 1990. Organizational mortality: the liabilities of newness and adolescence. Adm. Sci. Q. 35, 530-547.
    • Brüderl, J., Peter, P., Ziegler, R., 1992. Survival chances of newly founded business organizations. Am. Sociol. Rev. 57 (2), 227-242.
    • Burgel, O., Fier, A., Licht, G., Murray, G., 2004. The internationalization of young hightech firms. ZEW Econ. Studies 22.
    • Butchart, R., 1987. A new UK definition of high technology industries. Econ. Rev. 400, 82-88.
    • Carpenter, M.A., Geletkanycz, M.A., Sanders, W.G., 2004. Upper echelons research revisited: antecedents, elements, and consequences of top management team composition. J. Manag. 30 (6), 749-778.
    • Cassar, G., 2006. Entrepreneur opportunity cost and intended venture growth. J. Bus. Ventur. 21, 610-632.
    • Cassar, G., 2007. Money, money, money? A longitudinal investigation of entrepreneur career reasons, growth preferences and achieved growth. Entrep. Reg. Dev. 19 (1), 89-107.
    • Cefis, E., Marsili, O., 2011. Revolving doors: entrepreneurial survival and exit. J. Evolut. Econ. 21 (3), 367-372.
    • Chandler, G.N., McKelvie, A., Davidsson, P., 2009. Asset specificity and behavioral uncertainty as moderators of the sales growth - employment growth relationship in emerging ventures. J. Bus. Ventur. 24 (4), 373-387, d.
    • Coad, A., 2009. The Growth of Firms: A Survey of Theories and Empirical Evidence. Edward Elgar Publishing, Cheltenham.
    • Coad, A., 2014. Death is not a success: reflections on business exit. Int. Small Bus. J. 32 (7), 721-732.
    • Coad, A., Cowling, M., Siepel, J., 2016a. Growth processes of high-growth firms as a fourdimensional chicken and egg. Ind. Corp. Change. http://dx.doi.org/10.1093/icc/ dtw040.
    • Coad, A., Segarra, A., Teruel, M., 2016b. Innovation and firm growth: does firm age play a role? Res. Policy 42 (2), 387-400.
    • Collins, C., Smith, K., 2006. Knowledge exchange and recombination: the role of human resource practices in the performance of high-technology firms. Acad. Manag. J. 49 (3), 544-560.
    • Colombo, M.G., Delmastro, M., 2001. Technology-based entrepreneurs: does internet make a difference? Small Bus. Econ. 16 (3), 177-190.
    • Colombo, M.G., Grilli, L., 2005. Founders' human capital and the growth of new technology-based firms: a competence-based view. Res. Policy 34 (6), 795-816.
    • Colombo, M.G., Grilli, L., 2010. On growth drivers of high-tech start-ups: exploring the role of founders' human capital and venture capital. J. Bus. Ventur. 25 (6), 610-626.
    • Cooper, A., Gimeno-Gascon, F., Woo, C., 1994. Initial human and financial capital as predictors of new venture performance. J. Bus. Ventur. 9 (5), 371-395.
    • Courderoy, R., Cowling, M., Licht, G., Murray, G., 2012. Young firm internationalization and survival: empirical tests on a panel of 'adolescent' new technology-based firms in Germany and the UK. Int. Small Bus. J. 30 (5), 472-492.
    • Dahl, M., Klepper, S., 2015. Whom do new firms hire? Ind. Corp. Change 24 (4), 819-836.
    • Davidsson, P., 1989. Entrepreneurship and after? A study of growth willingness in small firms. J. Bus. Ventur. 4, 211-226.
    • Davidsson, P., Wiklund, J., 2001. Levels of analysis in entrepreneurship research: current research practice and suggestions for the future. Entrep. Theory Pract. 25 (4), 81-100.
    • Davidsson, P., Honig, B., 2003. The role of social and human capital among nascent entrepreneurs. J. Bus. Ventur. 18 (3), 301-331.
    • De Winne, S., Sels, L., 2010. Interrelationships between human capital, HRM and innovation in Belgian start-ups aiming at an innovation strategy. Int. J. Hum. Resour. Manag. 21 (11), 1863-1883.
    • Delgado-Verde, M., Castro, G.M., Amores-Salvadó, J., 2016. Intellectual capital and radical innovation: exploring the quadratic effects in technology-based manufacturing firms. Technovation 54, 35-47.
    • Delmar, F., 2006. Does experience matter? The effect of founding team experience on the survival and sales of newly founded ventures. Strateg. Organ. 4 (3), 215-247.
    • Delmar, F., McKelvie, A., Wennberg, K., 2013. Untangling the relationships among growth, profitability and survival in new firms. Technovation 33 (8-9), 276-291.
    • Delmar, F., Shane, S., 2004. Legitimating first: organizing activities and the survival of new ventures. J. Bus. Ventur. 19 (3), 385-410.
    • DeTienne, D.R., Shepherd, D.A., De Castro, J.O., 2008. The fallacy of “only the strong survive”: the effects of extrinsic motivation on the persistence decisions for underperforming firms. J. Bus. Ventur. 23 (5), 528-546.
    • DeTienne, D.R., McKelvie, A., Chandler, G.N., 2015. Making sense of entrepreneurial exit strategies: a typology and test. J. Bus. Ventur. 30 (2), 255-272.
    • Douglas, E., 2013. Reconstructing entrepreneurial intentions to identify predisposition for growth. J. Bus. Ventur. 28 (5), 633-651.
    • Dutta, D., Thornhill, S., 2009. The evolution of growth intentions: toward a cognitionbased model. J. Bus. Ventur. 23 (3), 307-332.
    • Evans, D.S., 1987. The relationship between firm growth, size, and age: estimates for 100 manufacturing industries. J. Ind. Econ. 35 (4), 567-581.
    • Evans, D., Leighton, L., 1989. Some empirical aspects of entrepreneurship. Am. Econ. Rev. 79, 519-535.
    • Ganotakis, P., 2012. Founders' human capital and the performance of UK new technology based firms. Small Bus. Econ. 39 (2), 495-515.
    • Gimeno, J., Folta, T., Cooper, A., Woo, C., 1997. Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Adm. Sci. Q. 42, 750-783.
    • Greene, F., 2003. Econometric Analysis, 5th ed., Upper Saddle River, NJ: Pearson Hambrick, D., Mason, P., 1984. Upper echelons: the organization as a reflection of its top managers. Acad. Manag. Rev. 9, 193-206.
    • Headd, B., 2003. Redefining business success: distinguishing between closure and failure. Small Bus. Econ. 21 (1), 51-61.
    • Helfat, C.E., Lieberman, M., 2002. The birth of capabilities: market entry and the importance of pre-history. Ind. Corp. Change 11 (4), 725-760.
    • Hessels, J., Grilo, I., Thurik, R., van der Zwan, P., 2010. Entrepreneurial exit and entrepreneurial engagement. J. Evolut. Economics 21 (3), 447-471.
    • Henderson, A.D., 1999. Firm strategy and age dependence: a contingent view of the liability of newness, adolescence, and obsolescence. Adm. Sci. Q. 44, 281-314.
    • Hitt, M.A., Biermant, L., Shimizu, K., Kochhar, R., 2001. Direct and moderating effects of human capital on strategy and performance in professional service firms: a resourcebased perspective. Acad. Manag. J. 44 (1), 13-28.
    • Huang, H.-C., Lai, M.-C., Lo, K.-W., 2012. Do founders' own resources matter? The influence of business networks on start-up innovation and performance. Technovation 32 (5), 316-327.
    • Jovanovic, B., 1982. Selection and the evolution of industry. Econometrica 50 (3), 649.
    • Kahneman, D., Tversky, A., 1979. Prospect theory: an analysis of decision under risk. Econometrica 47, 263-291.
    • Khelil, N., 2016. The many faces of entrepreneurial failure: insights from an empirical taxonomy. J. Bus. Ventur. 31 (1), 72-94.
    • Klaas, B.S., Klimchak, M., Semadeni, M., Holmes, J.J., 2010. The adoption of human capital services by small and medium enterprises: a diffusion of innovation perspective. J. Bus. Ventur. 25 (4), 349-360.
    • Kolvereid, L., 1992. Growth aspirations among Norwegian entrepreneurs. J. Bus. Ventur. 7, 209-222.
    • Lazear, E., 2004. Balanced skills and entrepreneurship. Am. Econ. Rev. 94 (2), 208-211.
    • Liao, J., Welsch, H., 2003. Social capital and entrepreneurial growth aspiration: a comparison of technology- and non-technology-based nascent entrepreneurs. J. High. Technol. Manag. Res. 14 (1), 149-170.
    • Luzzi, A., Sasson, A., 2016. Individual entrepreneurial exit and earnings in subsequent paid employment. Entrep. Theory Pract. 40 (2), 401-420.
    • Lynskey, M.J., 2004. Determinants of innovative activity in japanese technology-based start-up firms. Int. Small Bus. J. 22 (2), 159-196.
    • McKelvie, A., Wiklund, J., 2010. Advancing firm growth research: a focus on growth mode instead of growth rate. Entrep. Theory Pract. 34 (2), 261-288.
    • Miller, C.C., Washburn, N.T., Glick, W.H., 2013. The myth of firm performance. Organ. Sci. 24 (3), 948-964.
    • Nightingale, P., 2000. Economies of scale in experimentation: knowledge and technology in pharmaceutical R & D. Ind. Corp. Change 9 (2), 315-359.
    • Nightingale, P., Coad, A., 2014. Muppets and Gazelles: political and methodological biases in entrepreneurship research. Ind. Corp. Change 23 (1), 113-143.
    • Oakey, R.P., 2003. Funding innovation and growth in UK new technology-based firms: some observations on contributions from the public and private sectors. Ventur. Cap. 5 (2), 161-179.
    • Paradkar, A., Knight, J., Hansen, P., 2015. Innovation in start-ups: ideas filling the void or ideas devoid of resources and capabilities? Technovation 41-42, 1-10.
    • Podsakoff, P.A., MacKensie, S., Lee, J.-Y., Podsakoff, N.P., 2003. Common method biases in behavioural research: a critical review of literature and recommended remedies. J. Appl. Psychol. 88 (5), 879-903.
    • Pollock, T.G., Fund, B.R., Baker, T., 2009. Dance with the one that brought you? Venture capital firms and the retention of founder-CEOs. Strateg. Entrep. J. 3 (3), 199-217.
    • Ruhnka, J., Feldman, H., Dean, T., 1992. The “living dead” phenomenon in venture capital investments. J. Bus. Ventur. 7, 137-155.
    • Saemundsson, R., 2005. On the interaction between the growth process and the development of technical knowledge in young and growing technology-based firms. Technovation 25 (3), 223-235.
    • Shane, S., Venkataraman, S., 2000. The promise of entrepreneurship as a field of research. Acad. Manag. Rev. 25 (1), 217-226.
    • Smith, K.G., Collins, C.J., Clark, K.D., 2005. Existing knowledge, knowledge creation capability, and the rate of new product introduction in high-technology firms. Acad. Manag. J. 48 (2), 346-357.
    • Solomon, G., Bryant, A., May, K., Perry, V., 2013. Survival of the fittest: technical assistance, survival and growth of small businesses and implications for public policy. Technovation 33 (8-9), 292-301.
    • Sommer, L.P., Heidenreich, S., Handrich, M., 2016. War for talents-how perceived organizational innovativeness affects employer attractiveness. RD Manag.. http:// dx.doi.org/10.1111/RADM.12230.
    • Sorensen, J.B., Stuart, T.E., 2000. Aging, obsolescence, and organizational innovation. Adm. Sci. Q. 45 (1), 81.
    • Stewart, W.H., Watson, W.E., Carland, J.C., Carland, J.W., 1999. A proclivity for entrepreneurship: a comparison of entrepreneurs, small business owners, and corporate managers. J. Bus. Ventur. 14 (2), 189-214.
    • Stinchcombe, A., 1965. Social structure and organizations. In: March, J.G. (Ed.), Handbook of Organizations. Rand McNally, Chicago.
    • Storey, D., Tether, B., 1998. Public policy measures to support new technology-based firms in the European Union. Res. Policy 26 (9), 1037-1057.
    • Storey, D.J., 1994. Understanding the small business sector, Cengage Learning EMEA, p. 388.
    • Terjesen, S., Szerb, L., 2008. Dice thrown from the beginning? An empirical investigation of determinants of firm level growth expectations. Estud. Econ. 35 (2), 153-178.
    • Thornhill, S., Amit, R., 2003. Learning about failure: bankruptcy, firm age, and the resource-based view. Organ. Sci. 14 (5), 497-509.
    • Ucbasaran, D., Westhead, P., Wright, M., 2007. Opportunity identification and pursuit: does an entrepreneur's human capital matter? Small Bus. Econ. 30 (2), 153-173.
    • Verheul, I., van Mil, L., 2011. What determines the growth ambitions of Dutch earlystage entrepreneurs? Int. J. Entrep. Ventur. 3 (2), 183-192.
    • Visintin, F., Pittino, D., 2014. Founding team composition and early performance of university-based spin-off companies. Technovation 34 (1), 31-43.
    • Wennberg, K., DeTienne, D.R., 2014. What do we really mean when we talk about “exit”? A critical review of research on entrepreneurial exit. Int. Small Bus. J. 32 (1), 4-16.
    • Wennberg, K., Wiklund, J., DeTienne, D.R., Cardon, M.S., 2010. Reconceptualizing entrepreneurial exit: divergent exit routes and their drivers. J. Bus. Ventur. 25 (4), 361-375.
    • Wennberg, K., Delmar, F., McKelvie, A., 2016. Variable risk preferences in new firm growth and survival. J. Bus. Ventur. 31 (4), 408-427.
    • Westhead, P., Cowling, M., 1995. Employment change in independent owner-managed high-technology firms in Great Britain. Small Bus. Econ. 7 (2), 111-140.
    • Westhead, P., Ucbasaran, D., Wright, M., Binks, M., 2005. Novice, serial, and portfolio entrepreneur behavior and contributions. Small Bus. Econ. 25 (2), 109-132.
    • van Witteloostuijn, A., 1998. Bridging behavioral and economic theories of decline: organizational inertia, strategic competition and chronic failure. Manag. Sci. 44 (4), 502-519.
    • Wiklund, J., Shepherd, D., 2003. Aspiring for, and achieving growth: the moderating role of resources and opportunities. J. Manag. Stud. 40 (8), 1919-1941.
    • Wright, P., Dunford, B., Snell, S., 2001. Human resources and the resource based view of the firm. J. Manag. 27 (6), 701-722.
  • No related research data.
  • No similar publications.

Share - Bookmark

Funded by projects

Cite this article