Founding scale and survival: Double-edged effects of corporate sponsorship
Journal
Service Industries Journal
Journal Volume
31
Journal Issue
6
Pages
997-1009
Date Issued
2011
Author(s)
Abstract
This study examines the effects of founding scale on survival rates across independent and corporate-sponsored Taiwan securities firms. Empirical results confirm the positive effects of founding scale and corporate sponsorship on new venture survival. Results also indicate that when founding scale is large, corporate-sponsored new ventures have higher survival rates than independent ventures. However, when founding scale is smaller, the reverse is true: corporate-sponsored new ventures have lower survival rates than independent ventures. Therefore, corporate sponsorship comes off as a double-edged sword; new ventures may benefit from the parent's existent resources and social linkages, but also suffer from a loss of autonomy and control over major decisions.
SDGs
Type
journal article