TY  - RPRT
        AU  - Block, Jörn
AU  - Kohn, Karsten
AU  - Miller, Danny
AU  - Ullrich, Katrin
        TI  - Necessity Entrepreneurship and Competitive Strategy
        PY  - 2014/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8219
        UR  - https://www.iza.org/publications/dp8219
        AB  - Many start-ups chose to compete with incumbent firms using one of two generic strategies: cost leadership or differentiation. Our study demonstrates how this choice depends on whether the startup was founded out of necessity. Our results, based on a representative data set of 4,568 German start-ups, show that necessity entrepreneurs are more likely than other entrepreneurs to pursue a cost leadership strategy, and less likely to pursue a differentiation strategy. Decomposition analyses further show that up to half of the difference in choice of strategy can be attributed to distinct endowments of human capital, socio-economic attributes, and start-up project characteristics that correlate with necessity entrepreneurship.
        KW  - competitive strategy
KW  - new venture strategy
KW  - necessity entrepreneurship
KW  - product differentiation
KW  - decomposition analysis
KW  - cost leadership
        ER  -