Organizational Sponsorship and Founding Environments: A Contingency View on the Survival of Business Incubated Firms, 1994-2007

66 Pages Posted: 17 Sep 2013

See all articles by Alejandro Amezcua

Alejandro Amezcua

Syracuse University

Matthew Grimes

Indiana University - Kelley School of Business

Steven W. Bradley

Baylor University

Johan Wiklund

Syracuse University

Date Written: February 28, 2013

Abstract

Organizational sponsorship refers to attempts to mediate the relationship between new organizations and their environments by creating a resource-munificent context intended to increase survival rates among those new organizations. This includes efforts such as business incubation, venture capital, and governmental policies that create resource munificent environments for entrepreneurial activity. Existing theories are prone to treat such resource munificence as the inverse of resource dependence, indicating that the application of new resources in an entrepreneurial context should always benefit new firms. These existing theories, however, often overlook heterogeneity in both the types of applied resources as well as the founding environmental conditions. By attending to these nuances, we reveal that resource munificence is not necessarily predictive of organizational survival. Employing a dataset of 178 university-based incubators hosting 2110 new organizations from 1994 to 2007, we find that the resource munificence related to sponsorship can potentially decrease or increase survival rates among new organizations, and that these effects are contingent on the fit of the resource type with the geographic-based founding density. These findings confirm the need for a more nuanced theory of sponsorship that attends to the mechanisms and conditions whereby resource munificence is likely to alter new organization survival rates.

Suggested Citation

Amezcua, Alejandro and Grimes, Matthew and Bradley, Steven W. and Wiklund, Johan, Organizational Sponsorship and Founding Environments: A Contingency View on the Survival of Business Incubated Firms, 1994-2007 (February 28, 2013). University of Alberta School of Business Research Paper No. 2013-549. Available at SSRN: https://ssrn.com/abstract=2276026

Alejandro Amezcua (Contact Author)

Syracuse University ( email )

900 S. Crouse Avenue
Syracuse, NY 13244-2130
United States

Matthew Grimes

Indiana University - Kelley School of Business ( email )

1309 East Tenth Street
Indianapolis, IN 47405-1701
United States

Steven W. Bradley

Baylor University ( email )

PO Box 98011
Waco, TX 76798-8011
United States

HOME PAGE: http://https://business.baylor.edu/directory/?id=Steve_Bradley

Johan Wiklund

Syracuse University ( email )

Whitman School of Management
720 University Avenue
Syracuse, NY 13244-2130
United States

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