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The influence of regional economy- and industry-level environmental munificence on young firm growthChowdhury, Sanjib K.; Endres, Megan Lee
Journal of business research, 09/2021, Letnik: 134Journal Article
•Entrepreneur industry choice has a significant impact on young firm revenue growth.•State economic condition has no direct impact on young firms revenue growth.•Entrepreneur industry choice is more important in a declining regional economy. This study examines the impact of environmental munificence on young firm revenue growth. One hundred and ninety young U.S.-based firms from 42 states are studied for their growth over a three-year period. Specifically, we find that the environmental munificence in terms of entrepreneur’s selected industry has a significant impact on young firms’ revenue growth but the state’s economic condition has no such impact. However, the positive effect of industry growth on young firms’ revenue growth is significantly stronger in states with declining GDP. The findings suggest that state economy may not be as important for starting a business for its revenue growth, and the choice of industry for the business is more important in a declining regional economy than has been previously understood.
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JCR | SNIP | JCR | SNIP | JCR | SNIP | JCR | SNIP |
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in: SICRIS
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