Online from: 2009
Subject Area: Enterprise and Innovation
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|Title:||Research on the affecting mechanism of entrepreneurial environment on new firm performance|
|Author(s):||Cai Li, (Management School, Jilin University, Changchun, China), Zhu Xiumei, (Management School, Jilin University, Changchun, China), Cui Qiguo, (Management School, Jilin University, Changchun, China), Zhao Di, (Management School, Jilin University, Changchun, China)|
|Citation:||Cai Li, Zhu Xiumei, Cui Qiguo, Zhao Di, (2010) "Research on the affecting mechanism of entrepreneurial environment on new firm performance", Journal of Chinese Entrepreneurship, Vol. 2 Iss: 2, pp.116 - 128|
|Keywords:||Business formation, China, Entrepreneurialism, Resource management|
|Article type:||Research paper|
|DOI:||10.1108/17561391011051117 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
|Acknowledgements:||This paper is part of the China National Natural Fund Key Project (70322005), China National Natural Fund Youth Project (70902027), “211”project of Jilin University.|
Purpose – This paper aims to build a theory model to examine the influencing mechanism of entrepreneurial environment on new firm performance based on network view and resource-based view, and then carry out empirical research.
Design/methodology/approach – Data were obtained from 112 new firms, through the use of questionnaires, in Changchun city, China.
Findings – Evidence indicates that the entrepreneurial environment has an impact on new firm performance through entrepreneurial network and resource acquisition. The results show that eight out of ten hypotheses are supported.
Practical implications – In a hostile, dynamic and complex environment, the new firm should enhance its entrepreneurial network to ensure resource acquisition and then promote performance.
Originality/value – The paper shows definitely the significance of entrepreneurial network as a bridge between external environment and resource acquisition and new firm performance. Entrepreneurial network and resource acquisition are identified as important intermediary variables, and resource combination ability as a moderating variable. This paper examines the influence of external environment on new firm performance. The research has some theoretical and managerial implications for new firms' survival and obtaining growth in highly uncertain and turbulent environments.
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