The role of operational stickiness in impacting new venture survival
Journal of Manufacturing Technology Management
ISSN: 1741-038X
Article publication date: 30 April 2019
Abstract
Purpose
The purpose of this paper is to examine the existence of operational stickiness, and explores the relationship between operational stickiness and the likelihood of survival. Furthermore, the authors investigate this relationship in different manufacturing industries.
Design/methodology/approach
Using a large sample of more than 200,000 new manufacturing small and medium enterprises between 2000 and 2013 in China, the authors use the survival analysis method to investigate the non-linear relationship between operational stickiness and the likelihood of survival.
Findings
The authors demonstrate the existence of operational stickiness, such as inventory stickiness, property, plant, and equipment (PPE) stickiness, and labor stickiness. Next, the authors find the inverted U-shaped relationship between operational stickiness and the likelihood of survival. Furthermore, the authors document the differential effect of operational stickiness on the likelihood of survival in different industries.
Practical implications
Managers can improve the firm’s likelihood of survival by maintaining a moderate inventory stickiness and PPE stickiness. However, managers should not adopt sticky labor management in manufacturing industries.
Originality/value
This paper may be the first study to demonstrate the existence of operational stickiness, and confirm the inverted U-shaped relationship between operational stickiness and the likelihood of survival.
Keywords
Citation
Shi, Y., Zhu, X., Zhang, S. and Lin, Y. (2019), "The role of operational stickiness in impacting new venture survival", Journal of Manufacturing Technology Management, Vol. 30 No. 5, pp. 876-896. https://doi.org/10.1108/JMTM-07-2018-0206
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited