Abstract:
Purpose
The paper intends to analyze the role that entrepreneurs’ selection and allocation of productive activities and non-productive activities play on the formation of “zombie firms”.
Design/methodology/approach
Different from the existing research idea, the paper follows the logic of endogenous growth theory, specifically based on the theoretical foundation of entrepreneurial activities allocation.
Findings
The results of Probit model show that lack of innovative productive activities and over investment in non-productive activities are internal reasons for the formation of zombie firms.
Originality/value
As the endogenous source of enterprise development, entrepreneurs should actively adjust their productive strategies, and invest more in productive activities of which the score is innovation, thus leading the enterprises to get rid of the risk of becoming “zombie firms”.
Keywords:
zombie firms; productive activities; unproductive activities; activities allocation
Full text:
http://www.iqds.whu.edu.cn/info/1119/15863.htm