2019
DOI: 10.1177/0019793919835550
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Is It All About Who You Know? Prior Work Connections and Entrepreneurial Success

Abstract: This article studies how prior professional connections among founding employees predict a new firm’s short- and medium-term success. The authors apply three employment network measures to a large employer–employee matched Brazilian panel data set to find that network structures are strongly predictive of both firm survival and growth. All else equal, new firms with previously connected founding employees experience higher survival odds but slower early growth. Results suggest that working with former co-worke… Show more

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Cited by 13 publications
(12 citation statements)
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“…The final two articles rely on country-level administrative data. Sarada and Tocoian (2019) use matched employer–employee data from Brazil to study how the networks of former co-workers are a resource for start-up performance. They categorize entrepreneurial firms according to the ties that current employees have through their prior employers and find that denser networks enhance the survival prospects of new firms, but slow the growth rate.…”
Section: Implications and Overview Of Special Issue Articlesmentioning
confidence: 99%
“…The final two articles rely on country-level administrative data. Sarada and Tocoian (2019) use matched employer–employee data from Brazil to study how the networks of former co-workers are a resource for start-up performance. They categorize entrepreneurial firms according to the ties that current employees have through their prior employers and find that denser networks enhance the survival prospects of new firms, but slow the growth rate.…”
Section: Implications and Overview Of Special Issue Articlesmentioning
confidence: 99%
“…e 5,5 p.p maior do que as demais entrantes. Já a análise dos determinantes de crescimento mostra que apenas 1(2) Os resultados estão em linha com os estudos realizados para Brasil (Muendler, et al, 2012;Sarada, & Tocoian, 2019) e Alemanha (Flackler, et al, 2016); parcialmente alinhados com os resultados da Dinamarca (Eriksson, & Kuhn, 2006) e Suécia (Andersson, & Klepper, 2013), uma vez que nesses países, pulled spin-off possui maior taxa de sobrevivência e de crescimento do que os demais entrantes, porém os dados para pushed spin-offs não são estatisticamente significativos; e encontra-se o contrário do resultado de Portugal (Rocha, 2014), pois a autora conclui que pushed spin-off apresentam maior probabilidade de sobrevivência do que sua contraparte pulled e nada se pode afirmar com relação ao crescimento (rever Quadro1).…”
Section: Análise Dos Resultadosunclassified
“…Verifica-se que continuar no mesmo setor da firma-mãe tem um efeito positivo tanto na sobrevivência quanto no crescimento, independentemente do horizonte temporal. Estes resultados estão em linha com o restante da literatura de spin-off de empregados (Sarada, & Tocoian, 2019;Rocha, 2014;Andersson, & Klepper, 2013) e reforçam a teoria de que a transferência de conhecimento específico herdada contribui para melhor performance da firma (Agarwal, et al, 2004).…”
Section: Análise Dos Resultadosunclassified
See 1 more Smart Citation
“…Schjoedt et al (2013), for example, argue that the effectiveness of a founding team is more likely to be determined by the good relationships between team members than the diversity of their skills. Sarada and Tocoian (2015) demonstrate that teams that consist of prior coworkers have better compatibility, more efficient resource sharing, and higher chances of venture survival.…”
Section: Similaritymentioning
confidence: 92%