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
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Englisch
- Erschienen in
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Series: IZA Discussion Papers ; No. 8219
- Klassifikation
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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
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Objekttyp
- Arbeitspapier
Beteiligte
- Block, Jörn Hendrich
- Kohn, Karsten
- Miller, Danny
- Ullrich, Katrin
- Institute for the Study of Labor (IZA)
Entstanden
- 2014