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What drives business failure? Exploring the role of internal and external knowledge capabilities during the global financial crisis

Garcia Martinez, Marian, Zouaghi, Ferdaous, Garcia Marco, Teresa, Robinson, Catherine (2019) What drives business failure? Exploring the role of internal and external knowledge capabilities during the global financial crisis. Journal of Business Research, 98 . pp. 441-449. ISSN 0148-2963. (doi:10.1016/j.jbusres.2018.07.032) (KAR id:68491)

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https://dx.doi.org/10.1016/j.jbusres.2018.07.032

Abstract

This paper contributes to the debate on the determinants of business failure and helps to clarify the effect of internal innovation efforts and external knowledge sources in a hazard model of firm exit. Using panel data of manufacturing and service firms in Spain for the period 2009-2015, our findings show that the financial crisis increased the probability of business failure; however, firms with high levels of R&D human capital are better positioned to survive under uncertain financial conditions. In addition, we find evidence that cooperation with vertical partners reduces the effect of business failure in manufacturing sectors. This study provides new insight into the antecedents of business failure and how firms can match their business capabilities to prevailing economic conditions.

Item Type: Article
DOI/Identification number: 10.1016/j.jbusres.2018.07.032
Uncontrolled keywords: Business failure, financial crisis, internal knowledge capabilities, external knowledge assets, hazard model
Subjects: H Social Sciences > HB Economic Theory
Divisions: Divisions > Kent Business School - Division > Kent Business School (do not use)
Depositing User: Marian Garcia
Date Deposited: 03 Aug 2018 15:51 UTC
Last Modified: 16 Feb 2021 13:57 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/68491 (The current URI for this page, for reference purposes)
Garcia Martinez, Marian: https://orcid.org/0000-0003-2689-2417
Robinson, Catherine: https://orcid.org/0000-0001-8861-4880
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