The role of employees for post-entry firm growth

The role of employees for post-entry firm growth While the majority of existing studies on the determinants of post-entry firm growth focus on the role of the founders or on the impact of firm-specific characteristics, possible effects of the characteristics of a start-up’s workforce have been widely neglected to date. In this paper we examine the role of initial worker and job characteristics (e.g., qualification, age, workload, marginal employment) of start-ups for their post‐entry employment growth. The analyses are based upon a capacious panel dataset comprising a representative 50 % sample of establishments in Germany. Our empirical results show that, inter alia, high-skilled and young workers are conducive to growth in terms of both the number of employees and full-time equivalents. With respect to flexible work forms, however, establishments using part-time employment show higher post‐entry growth only in terms of total hours worked, but a significantly lower growth with respect to the number of employees. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

The role of employees for post-entry firm growth

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Publisher
Springer US
Copyright
Copyright © 2012 by Springer Science+Business Media New York
Subject
Economics / Management Science; Management/Business for Professionals; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-012-9456-6
Publisher site
See Article on Publisher Site

Abstract

While the majority of existing studies on the determinants of post-entry firm growth focus on the role of the founders or on the impact of firm-specific characteristics, possible effects of the characteristics of a start-up’s workforce have been widely neglected to date. In this paper we examine the role of initial worker and job characteristics (e.g., qualification, age, workload, marginal employment) of start-ups for their post‐entry employment growth. The analyses are based upon a capacious panel dataset comprising a representative 50 % sample of establishments in Germany. Our empirical results show that, inter alia, high-skilled and young workers are conducive to growth in terms of both the number of employees and full-time equivalents. With respect to flexible work forms, however, establishments using part-time employment show higher post‐entry growth only in terms of total hours worked, but a significantly lower growth with respect to the number of employees.

Journal

Small Business EconomicsSpringer Journals

Published: Nov 10, 2012

References

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