• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.19 no.5
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• pp.99-109
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• 2024

This study is intended to examine factors affecting the survival rate of startups. Based on a literature review of previous studies, this study selected competitive advantage as a variable to represent the survival rate of startups, and the following as antecedents thereof: startup entrepreneurs' external networking behavior, dynamic capabilities, and product development performance. Many previous studies have used qualitative approaches that examined the relationship between each of the variables, while few quantitative studies have empirically demonstrated the relationship. An empirical investigation was, therefore, warranted, which this study conducted. A questionnaire survey of 402 startup entrepreneurs was conducted to measure startup entrepreneurs' external networking behavior, dynamic capabilities, product development performances, and competitive advantage. The following results were obtained. First, startup entrepreneurs' external networking behavior had a statistically significant positive effect on fidynamic capabilities. Second, dynamic capabilities had a statistically significant positive effect on pproduct development performances. Fourth, product development performances had a statistically significant positive effect on competitive advantage. Finally, startup entrepreneurs' external networking behavior had a statistically significant positive effect on competitive advantage by sequentially mediating dynamic capabilities, and product development performances. This study has the following implications. First, this study empirically demonstrated the conceptual model proposed by previous studies as a research model. This study's significance is that it actually demonstrated this empirically. Second, startup entrepreneurs can obtain funds through engaging in external networking. Through interviews with successful startup entrepreneurs, Kim & Moon (2021) developed a theoretical framework to reflect the fact that startup entrepreneurs can obtain funds in exchange for trust and reciprocity to funders, which is consistent with this study's empirical findings. Therefore, if startup entrepreneurs engage in networking behavior based on trust and reciprocity to those with whom they have a business partnership outside their startups, they may be effective at raising funds.