Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 271: Survival of born global firms – do employee characteristics matter for survival?

Torbjörn Halldin ()
Additional contact information
Torbjörn Halldin: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

Abstract: This paper investigates whether employee characteristics matter for firm survival. The focus of the paper is on born global firms both within the manufacturing and KIBS industries. A Cox proportional hazard model is implemented to find hazard ratios of the included employee and control variables. The results show little significance of individual employee characteristics as determinant for survival rates when born global firms are investigated. Furthermore, neither spinouts nor firms categorized as future exporters show much significance on individual characteristics. However, when the sample is extended to include the total amount of new firms, we see that individual employee characteristics matter for survival. This is especially true for measurements of education levels, which affect survival rates positively.

Keywords: Born global firms; firm survival; employee characteristics; Cox proportional hazard model

JEL-codes: F14; L25; L26; M13; M21

26 pages, March 16, 2012

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