Initial Conditions and Post-entry Performance: the Case of Indian Software Industry
نویسندگان
چکیده
In this paper we study entrepreneurship and firm survival, using as our empirical backdrop the Indian software service industry. We develop a model that has contrasting predictions about the impact of the scale of entry on firm performance, after conditioning on lagged output. We test predictions of the model. We find that current size positively influences the firm survival but initial size has negative effect on firm survival. We also find that founders’ human capital measured by their education reduces annual hazard of exit. The firms with access to market have advantage as also the firms with experience in the software industry.
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