Does innovativeness reduce startup survival rates?
Hyytinen, A., Pajarinen, M., & Rouvinen, P. (2015). Does innovativeness reduce startup survival rates?. Journal of Business Venturing, 30(4), 564-581. https://doi.org/10.1016/j.jbusvent.2014.10.001
Julkaistu sarjassa
Journal of Business VenturingPäivämäärä
2015Tekijänoikeudet
© 2014 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license.
There are two competing hypotheses explaining how innovativeness influences the survival of
startups: On the one hand, innovativeness is argued to foster survival-enhancing attributes
(e.g., market power and cost efficiency) and capabilities (e.g., absorptive capacity). On the other
hand, an innovative startup faces (and bears the associated risks of) liabilities of newness and
smallness that exceed those of its non-innovative counterparts. The available empirical literature
addressing this theoretical tension mostly supports the former hypothesis; we suggest that this
finding is, in part, driven by the common practice of employing an ex post measure that already
embodies a degree of success in innovativeness. We use an ex ante measure and find that a
startup's innovativeness is negatively associated with its subsequent survival. We also find that
entrepreneurs' greater appetite for risk magnifies this negative association. These findings imply
that pursuing innovations is not necessarily associated with survival during the early stages of
firm development and entails a more complicated start-up process.
...
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Elsevier Inc.ISSN Hae Julkaisufoorumista
0883-9026Asiasanat
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