Ability Matching and Survival of Start-Ups

Konferenzbeitrag

In this paper, I analyse how the survival of new firms is affected by the average ability level in the founding team, the team size, team members' homogeneity with respect to ability, and team members' heterogeneity with respect to education. As a theoretical basis, I apply the O-ring theory (Kremer (1993)). Using a rich employer-employee data set on the whole population of Danish firms founded in 1998, I find that the average ability level in a team and the team size have positive effects on firm survival. Having a team at all is the most crucial factor for the probability of survival of young firms. The degree of homogeneity with respect to ability and the degree of heterogeneity with respect to educations have no effect on the survival probability.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Formation and Performance of Teams ; No. F12-V1

Classification and Topics

• Classification: Wirtschaft ; Production and Organizations: Other ; Organization of Production ; New Firms; Startups
• Subject: entrepreneurship ; firm survival ; O-ring theory ; start-ups

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Müller, Bettina
• Event: Veröffentlichung
• (who): Verein für Socialpolitik
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/37328
• Last update: 10.03.2025, 11:42 AM CET