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The impact of government financial support on the performance of new firms: the role of competitive advantage as an intermediate outcome

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dc.contributor.authorPergelova, Albena
dc.contributor.authorAngulo-Ruiz, Fernando
dc.date.accessioned2020-09-30
dc.date.accessioned2022-05-31T01:15:18Z
dc.date.available2022-05-31T01:15:18Z
dc.date.issued2014
dc.description.abstractThis research examines the influence of government financial support on new firms' performance. Extant empirical research on the topic has found mixed results, which warrants an exploration of the theoretical basis for the impact of support policies on new firms' performance. Grounding the theoretical model in the resource-based view and institutional theories, this study contends that performance outcomes – e.g. revenues or profits – should not be the first outcomes of public policies to be examined. Instead, competitive advantage formation is suggested as a link between support policies and new firms' performance. Using new firms from the USA, we examine the impact of government financial support measures – government loans, guarantees and government equity – on firms' overall competitive advantage and more specific types of competitive advantage based on innovation, licensing-in, marketing and human capital. Controlling for family funding, bank financing, equity of business angels and venture capitalists, industry, size as well as entrepreneur's characteristics, the results reveal that government guarantees and government equity have a direct effect on new firms' competitive advantage and only an indirect impact on performance. Our results suggest to policy-makers to focus on helping new firms build the necessary capabilities to compete successfully in the marketplace.
dc.description.urihttps://library.macewan.ca/full-record/bth/100089001
dc.identifier.citationPergelova, Albena, and Fernando Angulo-Ruiz (2014) “The impact of government financial support on the performance of new firms: The role of competitive advantage as an intermediate outcome,” Entrepreneurship & Regional Development, 26 (9-10), 663-705. https://doi.org/10.1080/08985626.2014.980757
dc.identifier.doihttps://doi.org/10.1080/08985626.2014.980757
dc.identifier.urihttps://hdl.handle.net/20.500.14078/1714
dc.languageEnglish
dc.language.isoen
dc.rightsAll Rights Reserved
dc.subjectperformance
dc.subjectpublic policy support
dc.subjectaccess to finance
dc.subjectloans
dc.subjectguarantees
dc.subjectgovernment equity
dc.subjectcompetitive advantage
dc.titleThe impact of government financial support on the performance of new firms: the role of competitive advantage as an intermediate outcomeen
dc.typeArticle

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Department of International Business, Marketing, Strategy and Law