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Employees' entrepreneurial human capital and firm performance
Department of Industrial Economics and Management, KTH Royal Institute of Technology, INDEK, Stockholm, Sweden; Blekinge Institute of Technology, Karlskrona, Sweden; Swedish Entrepreneurship Forum, Stockholm, Sweden.
Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE). Department of Strategy and Innovation, Copenhagen Business School, Frederiksberg, Denmark.ORCID iD: 0000-0002-3950-931x
2023 (English)In: Research Policy, ISSN 0048-7333, E-ISSN 1873-7625, Vol. 52, no 2, article id 104703Article in journal (Refereed) Published
Sustainable development
Sustainable Development
Abstract [en]

We introduce a new measure of human capital, defined as employees' former involvement in entrepreneurship. Such entrepreneurial human capital (EHC) complements traditional human capital measures accumulated through work experience and education. Using detailed longitudinal register data, we track the previous years of entrepreneurial experience for the population of employees in Swedish private sector firms. We provide evidence that higher EHC among employees is associated with significantly higher levels of firm productivity. The baseline result implies that a 10 % increase in employees being former entrepreneurs increases firm-level productivity by 3.9 %. Additionally, we provide evidence that heterogeneity in employees' previous entrepreneurial experience (e.g., the reason for entering and exiting entrepreneurship, type of venture, length of entrepreneurial experiences, and relatedness of technology) influences the impact of EHC on productivity. The results are shown to be robust to various estimation techniques, alternative definitions of EHC, and other performance measures.

Place, publisher, year, edition, pages
Elsevier, 2023. Vol. 52, no 2, article id 104703
Keywords [en]
Human capital; Entrepreneurial experience; Productivity; Innovation
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-48397DOI: 10.1016/j.respol.2022.104703ISI: 000918961300003Scopus ID: 2-s2.0-85145596058Local ID: HOA;intsam;1430548OAI: oai:DiVA.org:hj-48397DiVA, id: diva2:1430548
Note

Included in doctoral thesis in manuscript form.

Available from: 2020-05-15 Created: 2020-05-15 Last updated: 2023-03-02Bibliographically approved
In thesis
1. Post-entrepreneurship productivity
Open this publication in new window or tab >>Post-entrepreneurship productivity
2020 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

In recent decades, public policies have been implemented to encourage individuals to become entrepreneurs. However, the individual and social benefits of such policies when some of these individuals eventually leave entrepreneurship are unclear. The purpose of this thesis is to empirically assess the productivity effects arising from the labor market experience of entrepreneurship, measured as self-employment, in subsequent wage employment.

This thesis consists of an introductory chapter and four independent papers. The four papers evaluate the consequences of the self-employment experience either for the individuals’ wages or for firm productivity when firms hire such individuals. All the papers compare the self-employment experience relative to wage employment.

The first paper estimates how individuals’ earnings are influenced in post-entrepreneurship careers when they return to wage employment. The findings suggest that former entrepreneurs suffer large earnings losses, especially in the first year as employees, and for the higher educated, these losses persist even after seven years in employment. The second paper studies the role of professional ties in entry wages when finding employment after self-employment. The results show that even when using former coworker ties in the hiring process, the former self-employed, except for those who have ties with incumbent employees when they had their own firm, earn significantly lower entry wages.

The third paper evaluates the productivity effects of different labor flows, with an emphasis on hiring former entrepreneurs. The paper finds that new hires who come from entrepreneurship, in general, are just as productive as those employees hired from another firm but are more productive than those coming from unemployment. The fourth paper analyzes how having employees with former entrepreneurship experience is related to firm productivity. The results show that having more former entrepreneurs as employees in a firm increases performance.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, Jönköping International Business School, 2020. p. 23
Series
JIBS Dissertation Series, ISSN 1403-0470 ; 137
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-48399 (URN)978-91-7914-000-7 (ISBN)
Public defence
2020-05-05, Zoom webinar and in B1014, Jönköping International Business School, Jönköping, 13:00 (English)
Opponent
Supervisors
Available from: 2020-05-15 Created: 2020-05-15 Last updated: 2020-05-15Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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  • modern-language-association-8th-edition
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  • Other style
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Language
  • de-DE
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  • Other locale
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Output format
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  • asciidoc
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