The survival value of clusters for de novo entrants

Aviad Pe'er, Ilan Vertinsky

Research output: Contribution to conferencePaperpeer-review


We analyze the survival of all de novo entrants into Canadian manufacturing sectors between 1984-1998. We classify firms according to the level of industry clustering in their location. The central questions are whether de novo firms in cluster and in non-cluster locations experience different chances of survival? If they do, what are the locational and firm specific characteristics associated with survival of de novo firms that differentiate cluster and non-cluster firms? Controlling for initial and current profiles of resources and capabilities we find that initial endowment of resources of de novo entrants provides a safety net for a longer period of time, and a higher survival rates in clusters. Findings also suggest that different strategies enhance enterprise survival in clusters and isolation.

Original languageEnglish (US)
StatePublished - 2006
Externally publishedYes
Event66th Annual Meeting of the Academy of Management, AOM 2006 - Atlanta, GA, United States
Duration: Aug 11 2006Aug 16 2006


Other66th Annual Meeting of the Academy of Management, AOM 2006
Country/TerritoryUnited States
CityAtlanta, GA

All Science Journal Classification (ASJC) codes

  • Management of Technology and Innovation
  • Management Information Systems


  • Clusters
  • De novo entrants
  • Survival


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