Leaving Employment to Entrepreneurship: The Value of Coworker Mobility in Pushed and Pulled-driven Startups

Vera Rocha, Anabela Carneiro, Celeste Varum

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    By combining the insights from the widespread research on entrepreneurial spin-offs and from the emerging literature on hiring choices in startups, we investigate the role of coworker mobility in pushed and pulled spin-offs survival. We address two main gaps identi ed in prior research: the relative inattention paid to other human resources beyond the founder, and the hetero-geneous context where employee startups may be established. We use a rich matched employer-employee dataset for Portugal, and estimate a multi-stage model addressing the issues of self-selection in entrepreneurship and endogeneity in recruitment choices. We find that spin-offs hiring coworkers from the parent fi rm survive longer. The survival bonus resulting from coworker mobility is higher in pushed-driven startups. This work has important implications for broader theories on the role of labor mobility in organizational outcomes of arrival fi rms, and also for developing theories on labor markets for entrepreneurship. It also constitutes an important step towards unpacking the mechanisms through which mobile human capital affects the performance of receiving firms.
    Original languageEnglish
    Publication date2016
    Number of pages34
    Publication statusPublished - 2016
    EventThe DRUID 20th Anniversary Conference 2016: Innovation and the Dynamics of Change - Copenhagen Business School, København, Denmark
    Duration: 13 Jun 201615 Jun 2016
    Conference number: 38


    ConferenceThe DRUID 20th Anniversary Conference 2016
    LocationCopenhagen Business School
    OtherThe DRUID Society Conference 2016
    SponsorCopenhagen Business School
    Internet address


    • Entrepreneurship
    • Coworker mobility
    • Pushed and pulled spinoffs
    • New venture survival

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