Leaving Employment to Entrepreneurship: The Value of Co-worker Mobility in Pushed and Pulled-Driven Start-ups

• Type: Article in International Scientific Journal
• Date: 2018

Authors

Rocha, V (Author) Other; Anabela Carneiro (Author) FEP; Varum, C (Author) Other

Journal

Title: Journal of Management Studies

Vol. 55

Pages: 60-85

ISSN: 0022-2380

Publisher: Wiley-Blackwell

Indexing

ISI Web of Knowledge - 32 Citations

Scopus - 32 Citations

Other information

Authenticus ID: P-00N-A22

DOI: 10.1111/joms.12318

Abstract (EN): By combining insights from the widespread research on entrepreneurial spin-offs and from the emerging literature on hiring choices in start-ups, we investigate the role of co-worker mobility in pushed and pulled spin-off survival. Using rich register data and a multi-stage model addressing self-selection and endogeneity issues, we cover 28,353 spin-offs launched between 1992 and 2007. We find that spin-offs hiring co-workers from the parent firm survive longer. This survival bonus is greater in pushed-driven start-ups. We investigate two different mechanisms through which co-worker mobility may improve spin-off survival - knowledge transfer and reduced searching costs. While both mechanisms play a role in explaining the survival bonus in pulled spin-offs, co-worker mobility seems to help pushed spin-offs to survive mostly by reducing initial recruitment costs. This work provides novel insights on the role of context surrounding new venture creation and inter-firm labour mobility.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 26