By Topic

Duration in the digital economy

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

2 Author(s)
Kauffman, R.J. ; Carlson Sch. of Manage., Minnesota Univ., Minneapolis, MN, USA ; Bin Wang

We examine the drivers of Internet firm survival using a multi-method survival analysis. Based on previous literature on business failure and recent IS research on e-commerce business models, we test the impact of sector-, firm- and e-commerce-specific factors on an Internet firm duration after its IPO. We first provide a descriptive analysis of Internet firm survival using non-parametric survival analysis, which indicates the existence of differences in exit timing for different e-commerce firms. We next explore the relative strengths of the explanatory factors in predicting different outcomes using semi-parametric survival analyses. Our results suggest that the impact of the sector-, firm- and e-commerce-specific factors are different for different outcomes such as bankruptcy, merger and acquisition. A favorable capital market, reflected in a high IPO entry rate, and the selling of digital goods can enhance an Internet firm's chances of survival. One limitation of our research is the generalizability of the results since the Internet sector is still in its early stage of development and we only include publicly-traded Internet firms in our data analysis. In addition, results from our semi-parametric analyses might not apply to publicly-traded B2B firms, which are not included since there were no observations of bankruptcies, mergers and acquisitions.

Published in:

System Sciences, 2003. Proceedings of the 36th Annual Hawaii International Conference on

Date of Conference:

6-9 Jan. 2003