Non-founder Human Capital and The Long-run Growth and Survival of Hightech
- Siepel, J., Cowling, M. & Coad, A. (2017). Non-founder human capital and the long-run growth and survival of hightech ventures. Technovation, 59, 34-43. Retrieved from: https://www.sciencedirect.com/science/article/pii/S0166497216303121. [Published: 2017]
Autor(es): Josh Siepel; Marc Cowling and Alex Coas
Abstract:This paper considers the impact of non-founder human capital on high-tech firms' long-run growth andsurvival. Drawing upon threshold theory, we explore how lack of access to complementary skills at differentpoints in the life course impacts founders' thresholds for exit. We examine these factors using a uniquelongitudinal dataset tracking the performance and survival of a sample of UK high-tech firms over thirteen yearsas the firms move from youth into maturity. We find that firms that survive but do not grow are characterized bydifficulty in accessing complementary managerial skills in youth, while firms that grow but subsequently exit arecharacterized by shortfalls of specialized complementary skills during adolescence. Firms that grow and survivedo not report skills shortfalls. We discuss the implications of these resource constraints for entrepreneurs’decisions to persist or exit through the life course.