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Employees' entrepreneurial human capital and firm performance
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Sustainability, Industrial Dynamics & Entrepreneurship. Blekinge Inst Technol, Econ, S-37179 Karlskrona, Sweden; Swedish Entrepreneurship Forum, Saltmätargatan 9, SE-11359 Stockholm, Sweden.ORCID iD: 0000-0003-0218-7924
Department of Strategy and Innovation, DK-2000 Frederiksberg, Denmark, and, Center for Entrepreneurship and Spatial Economics (CEnSe), Jönköping International Business School, P.O. Box 1026, SE-551 11 Jönköping, Sweden; Department of Strategy and Innovation, DK-2000 Frederiksberg, Denmark, and, Center for Entrepreneurship and Spatial Economics (CEnSe), Jönköping International Business School, P.O. Box 1026, SE-551 11 Jönköping, Sweden, P.O. Box 1026.
2023 (English)In: Research Policy, ISSN 0048-7333, E-ISSN 1873-7625, Vol. 52, no 2, article id 104703Article in journal (Refereed) Published
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 BV , 2023. Vol. 52, no 2, article id 104703
Keywords [en]
Entrepreneurial experience, Human capital, Innovation, Productivity
National Category
Business Administration
Identifiers
URN: urn:nbn:se:kth:diva-330087DOI: 10.1016/j.respol.2022.104703ISI: 000918961300003Scopus ID: 2-s2.0-85145596058OAI: oai:DiVA.org:kth-330087DiVA, id: diva2:1775155
Note

QC 20230626

Available from: 2023-06-26 Created: 2023-06-26 Last updated: 2023-06-26Bibliographically approved

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