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

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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.

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Authors and Affiliations

  1. School of Economics, Quaid-i-Azam University, Islamabad, Pakistan

    Sana Ullah & Muhammad Tariq Majeed

  2. School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China

    Muhammad Hafeez

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  1. Sana Ullah
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  2. Muhammad Tariq Majeed
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  3. Muhammad Hafeez
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Correspondence to Sana Ullah.

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Appendix

Appendix

See Table 5.

Table 5 Correlations, means and standard deviations (SD)
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Ullah, S., Majeed, M.T. & Hafeez, M. Education, experience, social network and firm survival: the case of the electrical fittings cluster in Sargodha, Pakistan. Decision 46, 267–278 (2019). https://doi.org/10.1007/s40622-019-00209-6

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