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Variable risk preferences in new firm growth and survival

På svenska

Author

  • Karl Wennberg
  • Frédéric Delmar
  • Alexander McKelvie

Summary, in English

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.

Publishing year

2016

Language

English

Pages

408-427

Publication/Series

Journal of Business Venturing

Volume

31

Issue

4

Document type

Journal article

Publisher

Elsevier

Topic

  • Economics and Business

Keywords

  • entreprenörskap
  • tillväxt
  • beslutsfattande
  • Growth
  • Survival
  • Aspiration levels
  • Focus of attention
  • New ventures
  • Risk preferences

Status

Published

ISBN/ISSN/Other

  • ISSN: 0883-9026