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Education, experience, social network and firm survival: the case of the electrical fittings cluster in Sargodha, Pakistan

Author

Listed:
  • Sana Ullah

    (Quaid-i-Azam University)

  • Muhammad Tariq Majeed

    (Quaid-i-Azam University)

  • Muhammad Hafeez

    (Beijing University of Posts and Telecommunications)

Abstract

In modern era of industrialization, firm survival is widely acknowledged and geared through industrial cluster in developing countries. The present study unfolds the impact of education, experience and social network on firm death by using two rounds of electrical fittings cluster survey from 2008 to 2017. The empirical outcomes from Cox PH model spotlight that entrepreneurs are relatively more educated, rich in experience of production and marketing, have low hazard rate in their business. The empirical analysis also revealed that firm survival can be achieved through strong social network of entrepreneur. The study findings infer that Small and Medium Enterprises Development Authority and United Nations Industrial Development Organization training programs are needed to focus on cluster entrepreneurs and sustained firm survival.

Suggested Citation

  • Sana Ullah & Muhammad Tariq Majeed & Muhammad Hafeez, 2019. "Education, experience, social network and firm survival: the case of the electrical fittings cluster in Sargodha, Pakistan," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(3), pages 267-278, September.
    • Handle: RePEc:spr:decisn:v:46:y:2019:i:3:d:10.1007_s40622-019-00209-6
    DOI: 10.1007/s40622-019-00209-6
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    Cited by:

    1. Sana Ullah & Muhammad Tariq Majeed & Babur Wasim Arif, 2021. "Social capital and firms’ choice of financing under credit constraints: microeconomic evidence from Pakistan," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 48(1), pages 3-13, March.

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    More about this item

    Keywords

    Industrial cluster; Firm survival; Human capital; Social capital; Pakistan;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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