Whitman School of Management at Syracuse University
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Abstract Details

A Resource-Based View of New Firm Survival: New Perspectives on the Role of Industry and Exit Route
Vol. Volume 18 Number 1 March/2013

Susan Coleman, Carmen Cotei and Joseph Farhat
This article explores factors affecting the survival and exit routes of new firms created in 2004 using data from the Kauffman Firm Survey. We draw upon the Resource-Based View to test several hypotheses regarding the impact of both tangible and intangible resources on new firm survival in both service and non-service firms. We also distinguish between two types of exit: closures (permanently stopped operations) and mergers or acquisitions. Our results reveal that, although service and non-service firms may differ in terms of industry structure, the fundamental resources that contribute to their survival are the same: education, work and life experience and adequate levels of startup financial capital. In spite of these similarities, our results did reveal industry differences in terms of exit. We found that serial entrepreneurs in the service sector were more likely to exit via merger or acquisition. Conversely, intellectual property decreased the likelihood of exit via merger or acquisition for non-service firms. Thus, our findings revealed a link between human capital, industry, and exit route for this sample of new firms

Keywords: New firm survival, Entrepreneurial exit, Resource-Based view