More Than Just a Number? The Conceptualization and Measurement of Firm Age in an Era of Temporary Organizations

Bakker, René M.; Josefy, Matthew

doi:10.5465/annals.2017.0035

Cited by 28 publications

(26 citation statements)

References 135 publications

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“…Our study bridges these two streams of research by considering the joint influence of firm attributes and home‐host country distance on firms' FDI location choices. We focused on three fundamental firm attributes—firm size, age, and state ownership, which have received tremendous attention from strategy scholars (e.g., Bakker & Josefy, ; Boyd & Solarino, ; Josefy et al, ). Our results show that home‐host country geographic distance is less of a concern in the FDI location choice decisions for larger and older firms and SOEs since they are more capable of securing resources in their home countries.…”

Section: Discussionmentioning

confidence: 99%

“…Firm size is “perhaps the most powerful explanatory organizational covariate in strategic analysis” (Josefy, Kuban, Ireland, & Hitt, , p. 715) and has a profound influence on firm strategic decisions. Similarly, firm age is a central construct in theories ranging from population ecology to institutional theory (Bakker & Josefy, ). Ownership is fundamental to firms' governance and strategic decisions and has received substantial attention from strategy scholars (Boyd & Solarino, ; Connelly, Hoskisson, Tihanyi, & Certo, ; Connelly, Shi, Hoskisson, & Koka, ; Shi, Connelly, & Hoskisson, ).…”

Section: Introductionmentioning

confidence: 99%

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Navigating geographic and cultural distances in international expansion: The paradoxical roles of firm size, age, and ownership

Zhang

Shi

2019

Strategic Management Journal

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Research Summary While geographic and cultural distances deter firms' international expansion, they do so via different mechanisms, such that firms with advantages in overcoming one‐dimension may face disadvantages in overcoming the other. Larger, older, and state‐owned firms have better access to resources in their home countries than smaller, younger, and non‐state‐owned firms, and thus are less concerned about the high operating costs associated with larger geographic distances. However, they are less adaptable to culturally distant countries and thus are more concerned about larger cultural distances. We propose that firm size, age, and state ownership weaken the deterrent effect of geographic distance while amplifying the deterrent effect of cultural distance. Results using data on Chinese firms' location choices of foreign direct investments in 2001–2013 support our predictions. Managerial Summary A key decision that managers need to make in expanding overseas is the foreign location choice. Although managers generally refrain from expanding to geographically and culturally distant countries, the importance of geographic and cultural distances in their consideration varies across firms, which tend to differ in resource endowment and adaptability. Because larger, older, and state‐owned firms are better positioned to absorb additional operating costs but are less adaptable to foreign countries' local environments than smaller, younger, and non‐state‐owned firms, the deterrent effect of geographic distance (cultural distance) is weaker (stronger) for the former than for the latter. Our findings show that foreign countries that seem to be good fits when considering geographic distance may be misfits when considering cultural distance, and vice versa.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Navigating geographic and cultural distances in international expansion: The paradoxical roles of firm size, age, and ownership

Zhang

Shi

2019

Strategic Management Journal

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“…Of the articles included in our review, only 21 are theoretical (e.g. Bakker and Josefy 2018; DeTienne 2010; Hannan 1998; Shepherd et al . 2000), whereas 178 articles are empirical (e.g.…”

Section: Methodological Approachesmentioning

confidence: 99%

“…Consequently, mortality risk increases with the degree of novelty for each matter and the number of them displaying novelty for the new venture. Lastly, recent discussions in this stream have been turning to the relevance of firm age in the markets of today's fast‐paced world, where firms exist for shorter periods than they used to and have different timescales for their operations (Bakker and Josefy 2018).…”

Section: New Venture Survival: Analysis Of the Literaturementioning

confidence: 99%

New Venture Survival: A Review and Extension

Soto-Simeone

Sirén

Antretter

2020

Int J Management Reviews

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This paper provides an evaluative overview of the new venture survival literature. Since Stinchcombe's primary attempt to explain the mortality rates of new ventures, different research fields, including entrepreneurship, management and sociology, have devoted considerable attention to the antecedents of new venture survival. Despite this lively research commitment, a comprehensive review of the literature on new venture survival-as one of the most essential performance measures for new ventures-is missing. Covering 54 years of research, this paper provides an overview of the factors affecting new venture survival and highlights important methodological aspects in this research field. The review concludes by discussing opportunities for future research.

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“…Concerns over pace can take many forms. Some entrepreneurs may be centrally concerned with the length of time it will take to make a first sale (Delmar & Davidsson, 2000), while others may focus on the time it will likely take to break even (Bhide, 1992), or to go IPO (Bakker & Josefy, 2018), or to reach a combination of different milestones as an entrepreneurial endeavor progresses (Bird, 1992;Dimov, 2011). In that way, entrepreneurs may focus on the pace required to achieve a single milestone or they may focus on the length of time to reach the culminating point of a series of milestones.…”

Section: Pacementioning

confidence: 99%