Founding scale and survival: double-edged effects of corporate sponsorship |
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| Authors: | Hsien-Jui Chung Chun-Chung Chen |
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| Institution: | 1. Department of Business Administration , National Chung Cheng University , Chiayi, Taiwan, Republic of China;2. Department and Graduate Institute of International Business , National Taiwan University , No. 1, Sec. 4, Roosevelt Road, Taipei, Taiwan, Republic of China |
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| Abstract: | This study examines the effects of founding scale on survival rates across independent and corporate-sponsored Taiwan securities firms. Empirical results confirm the positive effects of founding scale and corporate sponsorship on new venture survival. Results also indicate that when founding scale is large, corporate-sponsored new ventures have higher survival rates than independent ventures. However, when founding scale is smaller, the reverse is true: corporate-sponsored new ventures have lower survival rates than independent ventures. Therefore, corporate sponsorship comes off as a double-edged sword; new ventures may benefit from the parent's existent resources and social linkages, but also suffer from a loss of autonomy and control over major decisions. |
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| Keywords: | founding scale corporate-sponsored venture survival securities industry |
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