Employment growth in high-tech new ventures

C. Timothy Koeller, Thomas G. Lechler

Research output: Contribution to journalReview articlepeer-review

6 Scopus citations

Abstract

We specify and estimate a model of the early employment growth of technology-driven new ventures. Our estimated model is derived from labor demand theory. A data set of 100 German firms is used to conduct this analysis. The study's findings support the relevance of the theory as applied to these nascent firms. Employment growth is significantly enhanced in ventures exhibiting high profits, experienced founders, formal information processes, and outsourced product distribution. Our findings also confirm aspects of Penrose's theory of firm growth suggesting that transactions costs associated with larger founder teams may inhibit employment growth.

Original languageEnglish
Pages (from-to)135-147
Number of pages13
JournalJournal of Labor Research
Volume27
Issue number2
DOIs
StatePublished - Mar 2006

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