Initial human and financial capital as predictors of new venture performance

Cooper, Arnold C.; Gimeno, Javier; Woo, Carolyn Y.

doi:10.1016/0883-9026(94)90013-2

Cited by 1,664 publications

(402 citation statements)

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“…Compared with firms founded by solo entrepreneurs, startup firms founded by entrepreneurial teams have advantages in attracting venture capital and completing initial public offerings (Beckman, Burton, & O'Reilly, 2007); achieve better performance in changing industry environments (Robert Baum & Wally, 2003); and are more successful than solo-founder firms (Chandler & Hanks, 1998). Prior research supports a positive relationship between the entrepreneurial teams and startup success (Cooper & Bruno, 1977;Van de Ven, Hudson, & Schroeder, 1984;Cooper, Gimeno-Gascon, & Woo, 1994).…”

Section: Introductionmentioning

confidence: 92%

“…Previous empirical studies provide supports for significant impacts of industry experience on startups' profitability, survival, and growth (Cooper & Gimeno-Gascon, 1992;Cooper et al, 1994;Westhead, 2000;Ganotakis, 2012;Muñ oz-Bullon, Sanchez-Bueno, & Vos-Saz, 2015). Strong industry experience enables entrepreneurs to establish strong social network (Ardichvili, Cardozo, & Ray, 2003).…”

Section: Entrepreneurial Team Industry Experiences and Financial Resomentioning

confidence: 99%

“…(Delmar & Shane, 2003). Team-level industry experience indicates an entrepreneurial team's knowledge of the industry and/or knowledge of the line of business sectors relevant to the startup firm (Cooper et al, 1994). It strengthens the team's practical and problem solving skills (Lundvall & Johnson, 1994).…”

Section: The Moderating Role Of Industry Experience Of Entrepreneuriamentioning

confidence: 99%

“…Experiences of industry and/or the line of business generate domain-relevant tacit knowledge of 'know-what', 'know-how', and 'know-who' (Cooper et al, 1994). Tacit knowledge is accumulated from previous experiences in the same or similar businesses.…”

Section: The Moderating Role Of Industry Experience Of Entrepreneuriamentioning

confidence: 99%

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New-Born Startups Performance: Influences of Resources and Entrepreneurial Team Experiences

2018

IBR

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This study examines the interaction effects of entrepreneurial team experiences and resources o n new-born startup firm performance, from a contextual view point of entrepreneurship. The sample is from a longitudinal panel data of Kauffman Firm Survey conducted over the period of 2005-2012 by the Ewing Marion Kauffman Foundation. Results suggest that financial resources have positive impacts on startup firms' profitability; whereas the impacts of initial firm size on profitability are negative. Startups are more likely to be profitable when the firm size is small at the new-born stage. The positive impact of financial resources on profitability is greater when entrepreneurial teams have strong industry experience; whereas entrepreneurial teams' industry experience and intangible resources have a negative interaction effect on profitability. Entrepreneurial team's startup experience has most negative interaction effects on new-born startup firms' profitability. This finding indicates that the entrepreneurial team's startup experience plays stronger roles in venturing profitable startups when the amount of financial resources and initial firm size are small; however, the team's startup experience and intangible resources have positive interaction effects on new-born startups' profitability.

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Section: Introductionmentioning

confidence: 92%

Section: Entrepreneurial Team Industry Experiences and Financial Resomentioning

confidence: 99%

Section: The Moderating Role Of Industry Experience Of Entrepreneuriamentioning

confidence: 99%

Section: The Moderating Role Of Industry Experience Of Entrepreneuriamentioning

confidence: 99%

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New-Born Startups Performance: Influences of Resources and Entrepreneurial Team Experiences

2018

IBR

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“…Building on the literature in the two broad categories of financial and human slack (e.g., Cooper et al 1994;Mishina et al 2004), we argue that slack is crucial to facilitating and sustaining innovation in organizations and suggest that such resources not only impact growth (Mishina et al 2004), but also directly impact firm innovation. We further argue that CEO tenure and compensation, combined with slack resources, impact R&D spending.…”

Section: Introductionmentioning

confidence: 99%

Organizational Slack Effects on Innovation: The Moderating Roles of Ceo Tenure and Compensation

Mousa

Chowdhury

2014

Journal of Business Economics and Management

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Abstract. This study draws on upper echelons theory, the resource based view, and Penrose's theory of firm growth to show that slack resources, specifically financial and human slack, are essential to the research and development (R&D) strategies of organizations. We also suggest that both Chief Executive Officer (CEO) tenure and CEO compensation positively moderate the slack-innovation relationship. The empirical design compromised of panel regression analysis. We tested our hypotheses using all US publicly traded firms between 1993 and 2011. The research results show that firms with excess financial resources are more likely to have higher R&D investments, and to completely understand this relationship we must study CEO tenure and compensation. This study sheds light on central antecedents of firm innovation, it further extends our understanding by investigating the impact of CEO tenure and compensation on the slackinnovation relationship, and it applies a longitudinal design which answers previous calls to investigate this topic in more depth by offering enhanced stability to the results while allowing for different economic scenarios.

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Start‐up Founders and Support for Technology Entrepreneurs

Dokou¹

2017

Innovation Engines

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Initial human and financial capital as predictors of new venture performance

Cited by 1,664 publications

References 20 publications

New-Born Startups Performance: Influences of Resources and Entrepreneurial Team Experiences

New-Born Startups Performance: Influences of Resources and Entrepreneurial Team Experiences

Organizational Slack Effects on Innovation: The Moderating Roles of Ceo Tenure and Compensation

Start‐up Founders and Support for Technology Entrepreneurs

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