Department of Management

Michael S. Dahl

Home sweet home: Entrepreneurs' location choices and the performance of their ventures

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Home sweet home : Entrepreneurs' location choices and the performance of their ventures. / Dahl, Michael S.; Sorenson, Olav.

In: Management Science, Vol. 58, No. 6, 01.06.2012, p. 1059-1071.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

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Author

Dahl, Michael S. ; Sorenson, Olav. / Home sweet home : Entrepreneurs' location choices and the performance of their ventures. In: Management Science. 2012 ; Vol. 58, No. 6. pp. 1059-1071.

Bibtex

@article{9c325af1a6c34a259d1d13cbfc562d21,
title = "Home sweet home: Entrepreneurs' location choices and the performance of their ventures",
abstract = "Entrepreneurs, even more than employees, tend to locate in regions in which they have deep roots ({"}home{"} regions). Here, we examine the performance implications of these choices. Whereas one might expect entrepreneurs to perform better in these regions because of their richer endowments of regionally embedded social capital, they might also perform worse if their location choices rather reflect a preference for spending time with family and friends. We examine this question using comprehensive data on Danish start-ups. Ventures perform better-survive longer and generate greater annual profits and cash flows-when located in regions in which their founders have lived longer. This effect appears substantial, similar in size to the value of prior experience in the industry (i.e., to being a spin-off).",
keywords = "Behavior, Econometrics, Economics, Effectiveness-performance, Organizational studiess",
author = "Dahl, {Michael S.} and Olav Sorenson",
year = "2012",
month = "6",
day = "1",
doi = "10.1287/mnsc.1110.1476",
language = "English",
volume = "58",
pages = "1059--1071",
journal = "Management Science",
issn = "0025-1909",
publisher = "Institute for Operations Research and the Management Sciences (I N F O R M S)",
number = "6",

}

RIS

TY - JOUR

T1 - Home sweet home

T2 - Entrepreneurs' location choices and the performance of their ventures

AU - Dahl, Michael S.

AU - Sorenson, Olav

PY - 2012/6/1

Y1 - 2012/6/1

N2 - Entrepreneurs, even more than employees, tend to locate in regions in which they have deep roots ("home" regions). Here, we examine the performance implications of these choices. Whereas one might expect entrepreneurs to perform better in these regions because of their richer endowments of regionally embedded social capital, they might also perform worse if their location choices rather reflect a preference for spending time with family and friends. We examine this question using comprehensive data on Danish start-ups. Ventures perform better-survive longer and generate greater annual profits and cash flows-when located in regions in which their founders have lived longer. This effect appears substantial, similar in size to the value of prior experience in the industry (i.e., to being a spin-off).

AB - Entrepreneurs, even more than employees, tend to locate in regions in which they have deep roots ("home" regions). Here, we examine the performance implications of these choices. Whereas one might expect entrepreneurs to perform better in these regions because of their richer endowments of regionally embedded social capital, they might also perform worse if their location choices rather reflect a preference for spending time with family and friends. We examine this question using comprehensive data on Danish start-ups. Ventures perform better-survive longer and generate greater annual profits and cash flows-when located in regions in which their founders have lived longer. This effect appears substantial, similar in size to the value of prior experience in the industry (i.e., to being a spin-off).

KW - Behavior

KW - Econometrics

KW - Economics

KW - Effectiveness-performance

KW - Organizational studiess

UR - http://www.scopus.com/inward/record.url?scp=84862683792&partnerID=8YFLogxK

U2 - 10.1287/mnsc.1110.1476

DO - 10.1287/mnsc.1110.1476

M3 - Journal article

AN - SCOPUS:84862683792

VL - 58

SP - 1059

EP - 1071

JO - Management Science

JF - Management Science

SN - 0025-1909

IS - 6

ER -