An Analysis on Institutional Factors Affecting College Student Startups and Their Performance:A Panel Data Study of Korean Universities

This research utilizes a resource-based perspective, which explains how a company’s resources can lead to competitive advantage (Barney, 1996), to explore the institutional factors that affect the number of student startups at universities and their influence on startup performance. The study proposes 12 hypotheses linking institutional resources and programs to both the creation of student ventures and their outcomes, using data from 124 South Korean universities between 2017 and 2022 for a panel-data analysis. The analysis reveals that startup courses offered and startup clubs supported, in addition to the research resources and performance. significantly influenced the creation of student startups. However, the factors that contribute to student business formation do not always influence student startups’ employment or sales. While universities’ research performance still impacts student startups’ performance, startup education programs, rather than organizational resources or industry collaboration performance, significantly influence student startups’ employment and sales. The findings suggest that policy-makers at both universities and government institutions should focus on providing enough startup education programs so that student entrepreneurs can learn adequate management skills. In addition, it would be more favorable to provide more chances to collaborate between professors and students in commercialization and startup initiatives. Moreover, it is essential to balance support between fostering venture creation and aiding the growth and performance of student startups.