Competitive Pressures and Transition to Entrepreneurship: Empirical Evidence from Female Workers

Virgilio Failla, Francesca Melillo, Toke Reichstein

Publikation: Bidrag til konferencePaperForskningpeer review

Resumé

This paper investigates whether the likelihood of entrepreneurial activity is associated with the competitive pressures for promotion within a firm. We argue that competitive pressures increase the relative attractiveness of entrepreneurship as a career option. We test our prediction using a comprehensive matched employer-employee longitudinal data set from Denmark. To mitigate endogeneity concerns, we exploit variation in the gender composition of established firms as women are systematically found to be less competitive than man. We find that workers are more likely to become entrepreneurs if they start working in organizational settings with strong competitive pressures. Furthermore, this competitive effect is more pronounced in firms that are entrepreneurially prominent, i.e. firms that spawn more entrepreneurial ventures, suggesting that combining different sources of incentives to entrepreneurship has a positive non-linear effect. Our results have strong implications for managers, prospect entrepreneurs and policy makers.
This paper investigates whether the likelihood of entrepreneurial activity is associated with the competitive pressures for promotion within a firm. We argue that competitive pressures increase the relative attractiveness of entrepreneurship as a career option. We test our prediction using a comprehensive matched employer-employee longitudinal data set from Denmark. To mitigate endogeneity concerns, we exploit variation in the gender composition of established firms as women are systematically found to be less competitive than man. We find that workers are more likely to become entrepreneurs if they start working in organizational settings with strong competitive pressures. Furthermore, this competitive effect is more pronounced in firms that are entrepreneurially prominent, i.e. firms that spawn more entrepreneurial ventures, suggesting that combining different sources of incentives to entrepreneurship has a positive non-linear effect. Our results have strong implications for managers, prospect entrepreneurs and policy makers.

Konference

KonferenceThe DRUID 20th Anniversary Conference 2016
Nummer38
LokationCopenhagen Business School
LandDanmark
ByKøbenhavn
Periode13/06/201615/06/2016
AndetThe DRUID Society Conference 2016
SponsorCopenhagen Business School
Internetadresse

Emneord

  • Competitive pressures
  • Entrepreneurship
  • Entrepreneurial prominence
  • Gender

Citer dette

Failla, V., Melillo, F., & Reichstein, T. (2016). Competitive Pressures and Transition to Entrepreneurship: Empirical Evidence from Female Workers. Afhandling præsenteret på The DRUID 20th Anniversary Conference 2016, København, Danmark.
Failla, Virgilio ; Melillo, Francesca ; Reichstein, Toke. / Competitive Pressures and Transition to Entrepreneurship : Empirical Evidence from Female Workers. Afhandling præsenteret på The DRUID 20th Anniversary Conference 2016, København, Danmark.39 s.
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Failla, V, Melillo, F & Reichstein, T 2016, 'Competitive Pressures and Transition to Entrepreneurship: Empirical Evidence from Female Workers' Paper fremlagt ved The DRUID 20th Anniversary Conference 2016, København, Danmark, 13/06/2016 - 15/06/2016, .

Competitive Pressures and Transition to Entrepreneurship : Empirical Evidence from Female Workers. / Failla, Virgilio; Melillo, Francesca; Reichstein, Toke.

2016. Afhandling præsenteret på The DRUID 20th Anniversary Conference 2016, København, Danmark.

Publikation: Bidrag til konferencePaperForskningpeer review

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AU - Failla,Virgilio

AU - Melillo,Francesca

AU - Reichstein,Toke

PY - 2016

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N2 - This paper investigates whether the likelihood of entrepreneurial activity is associated with the competitive pressures for promotion within a firm. We argue that competitive pressures increase the relative attractiveness of entrepreneurship as a career option. We test our prediction using a comprehensive matched employer-employee longitudinal data set from Denmark. To mitigate endogeneity concerns, we exploit variation in the gender composition of established firms as women are systematically found to be less competitive than man. We find that workers are more likely to become entrepreneurs if they start working in organizational settings with strong competitive pressures. Furthermore, this competitive effect is more pronounced in firms that are entrepreneurially prominent, i.e. firms that spawn more entrepreneurial ventures, suggesting that combining different sources of incentives to entrepreneurship has a positive non-linear effect. Our results have strong implications for managers, prospect entrepreneurs and policy makers.

AB - This paper investigates whether the likelihood of entrepreneurial activity is associated with the competitive pressures for promotion within a firm. We argue that competitive pressures increase the relative attractiveness of entrepreneurship as a career option. We test our prediction using a comprehensive matched employer-employee longitudinal data set from Denmark. To mitigate endogeneity concerns, we exploit variation in the gender composition of established firms as women are systematically found to be less competitive than man. We find that workers are more likely to become entrepreneurs if they start working in organizational settings with strong competitive pressures. Furthermore, this competitive effect is more pronounced in firms that are entrepreneurially prominent, i.e. firms that spawn more entrepreneurial ventures, suggesting that combining different sources of incentives to entrepreneurship has a positive non-linear effect. Our results have strong implications for managers, prospect entrepreneurs and policy makers.

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KW - Entrepreneurial prominence

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KW - Entrepreneurial prominence

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Failla V, Melillo F, Reichstein T. Competitive Pressures and Transition to Entrepreneurship: Empirical Evidence from Female Workers. 2016. Afhandling præsenteret på The DRUID 20th Anniversary Conference 2016, København, Danmark.