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Social networking websites: who survives?

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  • Andrea Mangani

Abstract

This article studies the relationship between the characteristics of social networking sites (SNSs) and their probability of survival. The data sample includes 224 SNSs launched throughout the world from 1995 to 2015 and that can be described by focus strategy, business financing methods and interactions with external companies, such as partnerships, mergers and acquisitions. Three factors are systematically associated with closure hazard rates. First, compared with SNSs that address a specialized audience, generalist SNSs have a three times higher probability of closing. Second, being the target of a merger or acquisition more than doubles the probability of closure. Third, new entrants have higher probability to survive if compared with SNSs with experience in the industry.

Suggested Citation

  • Andrea Mangani, 2017. "Social networking websites: who survives?," Applied Economics, Taylor & Francis Journals, vol. 49(48), pages 4885-4896, October.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4885-4896
    DOI: 10.1080/00036846.2017.1296549
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