2007
DOI: 10.1287/mnsc.1060.0609
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Size Really Matters—New Insights for Start-ups’ Survival

Abstract: T his paper presents new evidence regarding a firm's probability for survival, based on the network structure of the firm's managers. We found that start-ups that have larger informal communication networks increased their chance to survive external shock. Original data have been collected from Israeli software start-ups during the dot-com economic growth. About eight years later, we added information about their ability to survive the burst of the dot-com bubble. From a theoretical point of view, this paper h… Show more

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Cited by 85 publications
(88 citation statements)
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“…Raz and Gloor, 2007), agglomeration diseconomies, especially relatively high land/lease prices, may explain the differences in location choices between small and large firms.…”
Section: Discussionmentioning
confidence: 99%
“…Raz and Gloor, 2007), agglomeration diseconomies, especially relatively high land/lease prices, may explain the differences in location choices between small and large firms.…”
Section: Discussionmentioning
confidence: 99%
“…For example, authors such as Levi et al (1954) conclude on the one hand that increasing centralization of group leaders improves the performance of the groups. In their analyses, Raz and Gloor (2007), Cross and Cummings (2004), and Balkundi and Harrison (2006) also conclude that teams that occupy a central position within the inter-group network, or which are led by a group manager with a central position in the intra-group network, perform better. The results of these studies could be theoretically explained by the fact that more centralization in the inter-group network provides access to relevant resources.…”
Section: State Of the Art Of Research And The Approachmentioning
confidence: 97%
“…For a number of years, it has demonstrated its usefulness in a business context (Borgatti and Foster 2003;Cross and Parker 2004;Cross et al 2002;Müller and Gronau 2007). Work on this topic focused on the effect of network structures on the performance of the individual (e. g. Ahuja et al 2003;Bulkley and Van Alstyne 2006;Cross and Cummings 2004;Gloor et al 2008;Mehra et al 2001;Moran 2005;Sparrowe et al 2001), groups (Balkundi and Harrison 2006;Brass 1981;Mayo and Pastor 2005;Reagans and Zuckerman 2001;Sparrowe et al 2001) and organizations (Ahuja 2000;Podolny and Baron 1997;Powell et al 1996;Raz and Gloor 2007;Uzzi 1996).…”
Section: State Of the Art Of Research And The Approachmentioning
confidence: 99%
“…al. 2008;Mehra et al 2001;Moran 2005;Sparrowe et al 2001), groups (Balkundi and Harrison 2006;Brass 1981;Mayo and Pastor 2005;Reagans and Zuckerman 2001;Sparrowe et al 2001) and organizations (Ahuja 2000;Podolny and Barron 1997;Powell et al 1996;Raz and Gloor 2007;Uzzi 1996).…”
Section: Motivation and Hypothesesmentioning
confidence: 99%
“…Whether it is software startups in Israel (Raz & Gloor 2007), biotech entrepreneurs in Canada (Baum et. al 2000) or Boston (Allen et.…”
Section: Introductionmentioning
confidence: 99%