Variable risk preferences in new firm growth and survival
(2016) In Journal of Business Venturing 31(4). p.408-427- Abstract
- We outline and test a decision-making theory of new venture growth and survival. Building upon research in entrepreneurship and decision making under risk, we hypothesize that entrepreneurs' attention to survival and aspiration reference points changes based on venture age (experience-based learning), size (differences in decision complexity), and performance decision domain. Examining a panel of 14,760 new ventures in the professional services sector, our findings show how risk preferences change as a venture ages and increases in size. This approach offers a more nuanced view of decision making under risk and provides a theoretical explanation for the common patterns of new ventures' probability of exit and growth diminishing with age... (More)
- We outline and test a decision-making theory of new venture growth and survival. Building upon research in entrepreneurship and decision making under risk, we hypothesize that entrepreneurs' attention to survival and aspiration reference points changes based on venture age (experience-based learning), size (differences in decision complexity), and performance decision domain. Examining a panel of 14,760 new ventures in the professional services sector, our findings show how risk preferences change as a venture ages and increases in size. This approach offers a more nuanced view of decision making under risk and provides a theoretical explanation for the common patterns of new ventures' probability of exit and growth diminishing with age and size. (Less)
- Abstract (Swedish)
- We outline and test a decision-making theory of new venture growth and survival. Building upon research in entrepreneurship and decision making under risk, we hypothesize that entrepreneurs’ attention to survival and aspiration reference points changes based on venture age (experience-based learning), size (differences in decision complexity), and performance decision domain. Examining a panel of 14,760 new ventures in the professional services sector, our findings show how risk preferences change as a venture ages and increases in size. This approach offers a more nuanced view of decision making under risk and provides a theoretical explanation for the common patterns of new ventures’ probability of exit and growth diminishing with age... (More)
- We outline and test a decision-making theory of new venture growth and survival. Building upon research in entrepreneurship and decision making under risk, we hypothesize that entrepreneurs’ attention to survival and aspiration reference points changes based on venture age (experience-based learning), size (differences in decision complexity), and performance decision domain. Examining a panel of 14,760 new ventures in the professional services sector, our findings show how risk preferences change as a venture ages and increases in size. This approach offers a more nuanced view of decision making under risk and provides a theoretical explanation for the common patterns of new ventures’ probability of exit and growth diminishing with age and size. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/4ccbd4ab-f141-484d-848f-f56959bd76f2
- author
- Wennberg, Karl ; Delmar, Frédéric LU and McKelvie, Alexander
- organization
- publishing date
- 2016
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- entreprenörskap, tillväxt, beslutsfattande, Growth, Survival, Aspiration levels, Focus of attention, New ventures, Risk preferences
- in
- Journal of Business Venturing
- volume
- 31
- issue
- 4
- pages
- 408 - 427
- publisher
- Elsevier
- external identifiers
-
- scopus:84969253495
- wos:000379630800003
- ISSN
- 0883-9026
- DOI
- 10.1016/j.jbusvent.2016.05.001
- language
- English
- LU publication?
- yes
- id
- 4ccbd4ab-f141-484d-848f-f56959bd76f2
- date added to LUP
- 2016-05-25 14:00:31
- date last changed
- 2022-04-01 00:24:05
@article{4ccbd4ab-f141-484d-848f-f56959bd76f2,
abstract = {{We outline and test a decision-making theory of new venture growth and survival. Building upon research in entrepreneurship and decision making under risk, we hypothesize that entrepreneurs' attention to survival and aspiration reference points changes based on venture age (experience-based learning), size (differences in decision complexity), and performance decision domain. Examining a panel of 14,760 new ventures in the professional services sector, our findings show how risk preferences change as a venture ages and increases in size. This approach offers a more nuanced view of decision making under risk and provides a theoretical explanation for the common patterns of new ventures' probability of exit and growth diminishing with age and size.}},
author = {{Wennberg, Karl and Delmar, Frédéric and McKelvie, Alexander}},
issn = {{0883-9026}},
keywords = {{entreprenörskap; tillväxt; beslutsfattande; Growth; Survival; Aspiration levels; Focus of attention; New ventures; Risk preferences}},
language = {{eng}},
number = {{4}},
pages = {{408--427}},
publisher = {{Elsevier}},
series = {{Journal of Business Venturing}},
title = {{Variable risk preferences in new firm growth and survival}},
url = {{http://dx.doi.org/10.1016/j.jbusvent.2016.05.001}},
doi = {{10.1016/j.jbusvent.2016.05.001}},
volume = {{31}},
year = {{2016}},
}