Mobility and Entrepreneurship: Evaluating the Scope of Knowledge–Based Theories of Entrepreneurship

Abstract

Knowledge–based theories of entrepreneurship infer transfer of knowledge from the effect of labor mobility on entrepreneurial entry. Yet, simple selection or situational mechanisms that do not imply knowledge transfer may influence entrepreneurial entry in similar ways. We argue that the extent to which such alternative mechanisms operate, labor mobility predicts entry but not subsequent performance for entrepreneurs. Analyses of matched employee–employer data from Sweden suggest that high rates of geographical and industry mobility increase individuals’ likelihood of entrepreneurial entry but have no effects on their entrepreneurial performance. This indicates that the relationship between labor mobility and entrepreneurial entry do not necessarily imply knowledge transfer.

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