Bureaucracy, work organization, and the transition to entrepreneurship

Bibliographic Data

ID14868554
AuthorsJacob Rubæk Holm (0000-0003-1110-1918, Aalborg University, corresponding author), Kristian Nielsen (0000-0002-2790-4064, Aalborg University), Bert Timmermans (0000-0003-1087-6017, Norwegian School of Economics), Bram Timmermans
Year2025
Volume64
Issue4
Pages2179-2195
Publication date2025-04-01
Open AccessYes
TypeARTICLE
VenueSmall Business Economics (JOURNAL)
Journal identifiersISSN: 0921-898X • E-ISSN: 1573-0913
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11187-024-00979-z
OpenAlexW4403989035
LanguageEN
Citations received1
References cited48

Empirical studies have often established a negative relationship between the size of a firm where an individual is employed and the probability of that individual subsequently founding a business. This literature suggests that size captures work organization—particularly bureaucracy—and that bureaucracy affects the transition to entrepreneurship. However, many studies find that firm size is a poor proxy of work organization and, therefore, calls for empirical research exploring the link between specific measures of work organization and the transition to entrepreneurship. We create a measure of work organization from survey data—ranging from bureaucracy to adhocracy. We then combine this with longitudinal matched employer–employee register data and investigate different types of entrepreneurial transitions for individuals triggered by a mass worker displacement event. We find that work organization significantly affects several measures of transition, with possible implications for the policies and institutional settings that condition firms’ organization of work

Bureaucracy · Business · Entrepreneurship · Political science · Politics · Transition (genetics · Work (physics · Chemistry · Engineering · Entrepreneurship Studies and Influences · Labor market dynamics and wage inequality · Mechanical Engineering

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Open DOIOpen Access