Monday 8 October 2018 at 11:00 in room C102
Steven Bradley (Baylor University)
Community Level Aspects of New Firm Survival: An Examination of Social Capital and Income Inequality
The environment in which organizations form has a significant influence on their long-term survival chances. However, management scholars often focus on industry environments as the primary source of external influence for new firms. We examine the additional role of community-level factors which varies in both economic vibrancy and shape aspects of trust, exchange and support that foster firm emergence and survival. We combine Kauffman Firm Survey and U.S. county-level Census data examining the survival rates for a diverse cohort of 3,324 U.S. firms founded in 2004 through the 2011 year.
In the first study (social capital and organizational exit: a multilevel perspective), we theorize that social capital is more than the availability of firm-level social ties, but also builds from local geographic social patterns that foster informal interaction, trust, knowledge sharing, and support that facilitate firm-level social exchange. We examine whether community-level social capital modifies the effect of firm strong and weak ties to improve survival chances.
In the second study (Economic Inequality and New Venture Survival), we examine community-level inequality in U.S. incomes. While most public and academic perceptions of income inequality are negative, we theorize that inequality increases variance in communities in terms of consumer buying preferences and also opportunities for new business formation to meet consumer demand. We use a fine-grained analysis of community income distribution showing that inequality and the shape of the inequality distribution improves new firm survival chances.
Steven Bradley is a Full Professor of Management and Entrepreneurship. He received his Ph.D. in Entrepreneurship with a minor in Business Strategy from the Indiana University, Kelley School of Business. Steve has extensive practical experience as an entrepreneur as the founder and manager of numerous businesses in the areas of engineering consulting, real estate, and product development and sales.
He has an undergraduate degree in Chemical Engineering from the University of Texas, and a Masters in Mechanical Engineering from Texas A&M University. Steve previously worked as an engineer for McDonnell Douglas and Law Engineering and has conducted research for 3M at Ecole Polytechnique Federale de Lausanne in Switzerland. Steve’s teaching responsibilities are currently in the area of strategic entrepreneurship. He has played an important role in developing program strength in the areas of social entrepreneurship and entrepreneurship policy. His work has been published at the Academy of Management Journal, Strategic Management Journal, Journal of Business Venturing, Journal of Management Studies, Entrepreneurship Theory and Practice and the International Journal of Development. He currently serves on Editorial Boards for the Academy of Management Journal, Journal of Management Studies, Journal of Business Venturing and Entrepreneurship Theory & Practice.