Loading...
Please wait, while we are loading the content...
Similar Documents
Necessity Entrepreneurship and Competitive Strategy
| Content Provider | EconStor |
|---|---|
| Author | Block, Jörn Hendrich Kohn, Karsten Miller, Danny Ullrich, Katrin |
| Abstract | 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. |
| File Format | |
| Language | English |
| Publisher | Institute for the Study of Labor (IZA) |
| Publisher Date | 2014-01-01 |
| Publisher Place | Bonn |
| Access Restriction | Open |
| Rights Holder | http://www.econstor.eu/dspace/Nutzungsbedingungen |
| Subject Keyword | cost leadership competitive strategy new venture strategy necessity entrepreneurship product differentiation decomposition analysis Market Structure, Firm Strategy, and Market Performance: General Entrepreneurship |
| Content Type | Text |
| Resource Type | Article |
