Possible Applications of Survival Analysis in Franchising Research

Time is an important variable for retailers. The concepts of survival and duration, linked to this time variable, can be very interesting in franchising research. For instance, what are the determinants of the survival of a network or a store? Which elements decrease the period before franchising or internationalising a network? There is a well adapted but little-exploited methodology in this research area: survival analysis. Consequently, this methodological paper presents in detail survival analysis methodology before giving relevant examples of applications in the franchising field. Managerial implications of these kinds of research are given before the conclusion.     

Modelling Entrepreneurship: Unifying The Equilibrium and Entry/Exit Approach

Two approaches can be distinguished with respect to modelling entrepreneurship: (i) the approach focusing on the net development of the number of entrepreneurs in an equilibrium framework and (ii) the approach focusing on the entries and exits of entrepreneurs. In this paper we unify these approaches to arrive at a model explaining the equilibrium and actual number of entrepreneurs and the entry and exit rate of entrepreneurs simultaneously and consistently. We apply our unified approach to the Netherlands using self-employment data for the 1960–1999 period. We find error-correction of about 20% per year and a very different situation in terms of disequilibrium before and after the early 1980s. Periods of high unemployment appear to be characterized by both high entry and high exit rates.     

Small Business Survival

Abstract

Previous evidence given for some of the significant costs of survival for private enterprises in Guangzhou suggested that entrepreneurs may pay a significant amount in the form of dinners, gifts, and other offerings to insure survival. As a follow-up to that preliminary study, data have been collected from a cross-section of industries formally operationalizing the “costs” of survival as the means for maintaining legitimacy. The cultural context for such costs/offerings is hypothesized to be through guanxi, a traditional way of establishing social and business networks. The analyses herein suggest that guanxi costs are significantly higher for private enterprises versus all other enterprises types, i.e., state, private, township and village, domestic and foreign enterprises. Also, consistent with its cultural context, quanxi is consider to be equally important in business as in life for all types of Chinese enterprises.     

Survival of new firms in the Brazilian franchising segment: an empirical study

This paper investigates the survival patterns of Brazilian franchising firms for the period 1994–1999. First, we considered the (percentage) survival of newly created franchisors in the following years. Survival functions were obtained by means of the Kaplan–Meier estimator for the selected sectors and they indicated sharp declines in the survival rates over time but with differential patterns across sectors. Finally, an econometric analysis based on the Cox proportional hazard model considered the explanatory variables pertaining to size, age and support regarding the legal aspects, location choice and training. The evidence indicates that the supports provided by the franchisor have a positive impact on the probability of survival of new firms, whereas there is partial evidence favoring a positive effect of firm size on survival.     

创业动力及其机制分析

创业是一个发现和捕捉机会并由此创造出新颖的产品或服务以及实现其潜在价值的过程。推动创业的因素包括创新活动的推动,创业利益的驱动,政府政策的鼓励和支持,改善自身环境的愿望,对个人抱负的追求,成功创业者的示范效应等,这些因素共同作用于创业过程,通过创业驱动机制、创业机会搜寻机制、风险投资机制以及创业利益的收获机制等保证创业活动的顺利开展。     

创业团队企业家精神及其测量

创业团队企业家精神的本质特征概括为集体创新、分享认知、共担风险和协作进取.在相关文献回顾基础上,借鉴个体企业家精神和公司企业家精神的测度量表,开发设计了创业团队企业家精神的测度量表,并通过调查数据分析,对量表的信度和效度进行实证检验,为今后拓宽并深化企业家精神的研究奠定了基础.     

Theoretical Foundations of an International Entrepreneurial Culture

The seeming absence of theoretical foundations in the international entrepreneurship (IE) field significantly accounts for the fragmentation of research in the area. We seek to address this deficiency through an exploration of the IE concept in the overall context in which it is embedded, namely organizational culture. We develop and discuss a conceptual framework of an International Entrepreneurial Culture, which consists of six interrelated dimensions: international market orientation, international learning orientation, international innovation propensity, international risk attitude, international networking orientation, and international motivation.     

A Model of Social Entrepreneurial Discovery

Social entrepreneurship activity continues to surge tremendously in market and economic systems around the world. Yet, social entrepreneurship theory and understanding lag far behind its practice. For instance, the nature of the entrepreneurial discovery phenomenon, a critical area of inquiry in general entrepreneurship theory, receives no attention in the specific context of social entrepreneurship. To address the gap, we conceptualize social entrepreneurial discovery based on an extension of corporate social responsibility into social entrepreneurship contexts. We develop a model that emphasizes mobilization and timing as underpinnings of social entrepreneurial discovery and offer distinct conceptual aspects and theoretic propositions instrumental to future social entrepreneurship research.     

The Resource-Based Theory of the Firm and Firm Survival

This paper examines the determinants of firm survival. We use hazard models to test a number of hypotheses mainly drawn from the Resource-Based Theory of the Firm. According to the Resource-Based View the ability of a firm to develop distinct capabilities enhances its ability to adapt to the changing competitive environment and improves its survival prospects. The results confirm that firms that develop firm-specific assets through advertising and making R&D (independently of the technological intensity of the industry) enjoy better survival prospects. Furthermore, failure risk increases up to about 20 years of trading, and then decreases to later rise in line with liability of “adolescence” and “senescence.”      

Interdependencies in the Dynamics of Firm Entry and Exit

This paper investigates the interdependence between firm entry and exit from an industrial dynamics perspective. The paper discusses how entry and exit rates in industrial sectors are affected by previous exit and entry rates. Economic theory presents two different approaches to how entry and exit of firms are interrelated, the multiplier effect and the competition effect. This paper intends to investigate which force is the predominant one, for entry and exit patterns, respectively. The empirical analysis is based on data for 25 Swedish manufacturing industries at the 2-digit SIC level, during the period 1991–2000. In the estimation work the study applies a dynamic panel data approach as suggested by Anderson and Hsiao [Journal of the American Statistical Association, 76:598–606, 1981] and Arellano and Bond [Review of Economic Studies, 58(2):277–297, 1991]. With respect to entry, the empirical results support the multiplier effect such that entry stimulates future entry, but also a competition effect such that past exit induces additional entry. With regard to exit, on the other hand, the competition effect rules, implying that previous entry causes subsequent exit and previous exit reduces subsequent exit.      

Culture and National Conditions Facilitating Entrepreneurial Start-ups

Culture shapes institutional practices and policies facilitating or constraining the formation of new start-ups. This study assesses the extent to which cultural parameters and economic conditions support the development of new business start-ups in 44 nations. Cultural and economic variables provided unique contributions in predicting a profile of environmental conditions (ease of obtaining financing for new ventures, administrative burdens, legal infrastructure, and labor flexibility) favoring entrepreneurship in different nations.     

Entrepreneurial Challenges in South Africa

ABSTRACT

This purpose of the research was to examine how entrepreneurs experience and deal with ethical dilemmas. In so doing, the author also uncovered some interesting aspects of entrepreneurial life in South Africa. This was a phenomenological study, based on interviews with seven entrepreneurs in established service-oriented ventures. For the purposes of this research, an entrepreneur was defined as a person who has created something of value and assumed the risk of establishing and managing a business around it. Each of the participating entrepreneurs was asked to describe their business, any dilemmas they've experienced, how they were handled, and what challenges they experience as an entrepreneur in South Africa today. This paper focuses on how entrepreneurs in South Africa view the challenges facing them. These include overcoming the legacies of apartheid, containing crime, fostering an acceptable business ethic, dealing with diversity, and facilitating reconciliation between ethnic groups.     

Exploiting Entrepreneurial Opportunities: The Impact of Entrepreneurship on Growth

Knowledge is recognized as an important ingredient for economic growth in addition to physical capital and labor. While transforming knowledge into products and processes it is exploited commercially. Nevertheless, the existing knowledge stock and the absorptive capacity of actors like employees at firms and researchers at universities and research institutions are conditional for the ability to produce, identify, and exploit knowledge. Since incumbent firms do not exploit new knowledge to the full extent, realized entrepreneurial opportunities may arise. This paper tests the hypothesis whether or not entrepreneurship is an important vehicle for knowledge flows and economic growth. The empirical results indicate that an increase in innovative start-up activity is more effective than an increase in general entrepreneurship for economic growth.      

Entrepreneurial Discovery as Constrained,Sytematic Search

This research uses a randomized, two-sample, post-test experiment to pit the alertness perspective against a new approach for searching systematically for venture ideas to create new wealth. The new approach uses self-selected consideration sets to constrain an entrepreneur’s search domain, which makes it possible to maximize the search results. The constrained domain conforms to the behavior of repeat entrepreneurs who do not search the whole world for venture ideas. Subjects in the treatment group were successful 60% of the time compared with 6.25% success rate for the control group. Fourteen percent of control group emulated the treatment group without receiving instructions to do so.      

新新贸易理论“新”在何处——异质性企业贸易理论剖析

传统贸易理论和新贸易理论都是基于企业同质化的前提假定.分析国际贸易产生的原因及其影响.然而,近年来以Melitz为代表的一些经济学家通过理论与实证研究发现.同一产业内部企业之间在其规模、生产率以及工人的工资上都存在着显著差异.从而提出了异质性企业贸易理论,又称为新新贸易理论,其研究视角从传统的国家和产业层面转向企业和产品层面,以生产率差异作为企业主要特征,从微观层面详细剖析了企业的出口、投资以及国际化生产组织行为,为国际贸易的利益来源提供了新的解释.     

Employment Growth Determinants in New Firms in Eastern Germany

The unification of both Germanies and the introduction of the market economy in eastern Germany came as a shock to existing firms and led to an enormous boom in the establishment of new firms. The first section of this paper shows that during the period under observation (January 1991--June 1995) the number of firms nearly doubled and in 1995, nearly 50% of all jobs were to be found in firms established after 1991. Shortly after unification, a kind of "start- window" existed during which the conditions for establishment, growth and survival of firms were extraordinarily good. The next section deals with the determinates of the growth of these newly founded firms. Most determinants have been selected on the basis of the most recent studies by Brüderl, Preisendörfer and Ziegler (1996), and Storey (1994). The analysis included not only establishment characteristics but also strategic factors such as the technological status of the establishment, the proportion of sales in interregional markets, and a corporate competitive strategy indicator. A comparison of these results with other studies shows that the determinants that affect employment growth in new firms in eastern German are apparently the same as in western Germany and Britain, albeit to different extents.     

创业创始人团队成员变动研究评介

创业创始人团队(EFT)相比单一创业者,可以为新生企业带来多样性的资源,成为新生企业生存和发展的重要基础。随着新生企业的发展,EFT成员变动成为一个普遍的现象,包括成员退出和成员进入。创业者只有正确理解和把握EFT在企业成长过程中的这种动态变化性,才能更好地应对EFT随着企业发展可能出现的不平衡问题,使EFT为新生企业的持续成长提供适应企业发展阶段的适当管理模式和资源支持。     

Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development

By demonstrating the importance of entrepreneurial exit to the entrepreneur, the firm, the industry, and the economy I contend that our understanding of the entrepreneurial process is incomplete without the inclusion of entrepreneurial exit. I define entrepreneurial exit and demonstrate how this conceptualization provides concepts that are unique from those addressed by researchers in other domains; thus outlining a space for it within the literature. In each phase of the entrepreneurial process I explore the development of an exit strategy, reasons for exit and options for exit.     

‘Entry Thresholds and Actual Entry and Exit in Local Markets’

Bresnahan and Reiss (1991) derive entry thresholds for local markets but do not investigate actual entry and exit flows. This paper investigates for thirteen Belgian retail and consumer service industries whether markets with actual numbers of firms higher (lower) than the thresholds display exit (entry) in subsequent periods. The results confirm that over a three-year period the rate of (net) entry is positively affected by the presence of ‘market room’. The exit rate, however, does not show a negative relation with ‘market room’.