Individual and opportunity factors influencing job creation in new firms

John C. Dencker, Marc Gruber, Sonali K. Shah

Research output: Contribution to journalArticlepeer-review

Abstract

We build on multiple theoretical perspectives to investigate the unique and joint effects of individual- and opportunity-level factors affecting job creation in new firms. We tested hypotheses using survey data from individuals who transitioned from unemployment to self-employment under the auspices of a German public policy program. Our findings reveal that an entrepreneur's breadth of knowledge has a negative influence on the firm's job creation, whereas the entrepreur's leadership experience has a positive influence. However, as the sector-specific labor requirements of a business opportunity increase, both breadth of knowledge and leadership experience allow founders to operate their firms with fewer employees.

Original languageEnglish (US)
Pages (from-to)1125-1147
Number of pages23
JournalAcademy of Management Journal
Volume52
Issue number6
DOIs
StatePublished - Dec 1 2009
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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