Unicorn Companies —How Does the Country's Environment Drive Its Emergence?
Driven by innovative solutions and business models, the Unicorn companies have developed widely. Nevertheless, the existing research is fragmented and limited mainly by descriptive approaches to examing the rise of these companies. We examine the association between the country-specific factors...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2023-12-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | https://ijtech.eng.ui.ac.id/article/view/6828 |
| Summary: | Driven by innovative solutions
and business models, the Unicorn companies have developed widely. Nevertheless,
the existing research is fragmented and limited mainly by descriptive
approaches to examing the rise of these companies. We examine the association
between the country-specific factors and the emergence of Unicorn companies in
certain countries. Cross-sectional linear and logistic regression models are
used on the dataset of 100 countries, 51 of which have a minimum of 1 Unicorn,
and the rest have not anyone. The results allow us to conclude that the
probability of Unicorn emergence depends on the entrepreneurial culture, human
capital, and regulatory environment of the country. In other words,
entrepreneurial spirit, education, and a favorable legal environment can lead
to the appearance of a Unicorn in the country. The further development and
appearance of more Unicorn companies are ensured by the availability of
financing and the development of IT- infrastructure. Key characteristics
include the growth of venture financing and the openness of firms to new
technologies in the country. The study contributes to the existing research in
part of focusing on the quantitative analysis of the association between the
country-specific factors and the Unicorns’ activity. |
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| ISSN: | 2086-9614 2087-2100 |