Arbeitspapier

Necessity Entrepreneurship and Competitive Strategy

Many start-ups chose to compete with incumbent firms using one of two generic strategies: cost leadership or differentiation. Our study demonstrates how this choice depends on whether the startup was founded out of necessity. Our results, based on a representative data set of 4,568 German start-ups, show that necessity entrepreneurs are more likely than other entrepreneurs to pursue a cost leadership strategy, and less likely to pursue a differentiation strategy. Decomposition analyses further show that up to half of the difference in choice of strategy can be attributed to distinct endowments of human capital, socio-economic attributes, and start-up project characteristics that correlate with necessity entrepreneurship.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 8219

Klassifikation
Wirtschaft
Market Structure, Firm Strategy, and Market Performance: General
Entrepreneurship
Thema
cost leadership
competitive strategy
new venture strategy
necessity entrepreneurship
product differentiation
decomposition analysis

Ereignis
Geistige Schöpfung
(wer)
Block, Jörn Hendrich
Kohn, Karsten
Miller, Danny
Ullrich, Katrin
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Block, Jörn Hendrich
  • Kohn, Karsten
  • Miller, Danny
  • Ullrich, Katrin
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2014

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