“The liability of newness” revisited: Theoretical restatement and empirical testing in emergent organizations

Yang, Tiantian; Aldrich, Howard E.

doi:10.1016/j.ssresearch.2016.09.006

Cited by 86 publications

(70 citation statements)

References 74 publications

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“…That is, there may be particular patterns in what entrepreneurs infer from common experiences, and some such inferences may do more harm than good. This is in line with several studies pointing to previous business ownership experience lowering (Nielsen & Sarasvathy, 2016;Rocha et al, 2015) or having no influence on venture viability (Yang & Aldrich, 2017). While our results should therefore not be taken as evidence of negative learning, they do, together with other recent research, suggest that such links should be investigated further.…”

Section: Contributions To Evolutionary Theory In Entrepreneurship Andsupporting

confidence: 93%

“…In fact, previous startup experience was found to have no significant effect on new venture viability. While counter to common beliefs, this is consistent with a growing body of research that show no, or even a negative, effect of previous experience(Nielsen & Sarasvathy, 2016;Rocha et al, 2015;Yang & Aldrich, 2017).…”

supporting

confidence: 86%

“…While subsequent research has firmly demonstrated that new ventures suffer considerably higher mortality rates than their older counterparts (Box, 2008;Thornhill & Amit, 2003;Yang & Aldrich, 2017), the specific mechanisms that underpin this heightened mortality rate are still not sufficiently understood. Existing research suggests that the survival chances of new ventures can be increased by access to buffer resources such as cash reserves and/or a willingness to work extensive hours with little or no compensation (Wiklund et al 2010;Shane, 2008).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

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The Liability of Volatility and How it Changes Over Time Among New Ventures

Lundmark

Coad

Frankish

et al. 2019

Entrepreneurship Theory and Practice

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This article theorizes how short-term revenue volatility affects new venture viability and how such volatility develops over time. Tracking the bank accounts of 6,578 new ventures over a 10-year period, we find that, even after controlling for a range of other factors, short-term revenue volatility is a strong predictor of venture exit. Although short-term revenue volatility is associated with the depletion of buffer resources and financial default, surviving ventures do not, on average, decrease their short-term revenue volatility over time. However, short-term revenue volatility decreases at the cohort level due to higher exit rates of volatile ventures.

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Section: Contributions To Evolutionary Theory In Entrepreneurship Andsupporting

confidence: 93%

supporting

confidence: 86%

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

The Liability of Volatility and How it Changes Over Time Among New Ventures

Lundmark

Coad

Frankish

et al. 2019

Entrepreneurship Theory and Practice

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show abstract

“…Regarding organizational rigidity, for example, Loderer et al (2017) present theory and evidence that the decline in growth opportunities (proxied by Tobin's q) that occurs as firms age is due to the organizational rigidity that occurs from a continual focus on improving the management of assets in place. Yang and Aldrich (2017) revisit the concept of liability of newness and distinguish between resources at birth and resources collected immediately after entry.…”

Section: Introductionmentioning

confidence: 99%

Firm age and performance

et al. 2017

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International audienceAmid increasing interest in firm age and its effects on firm performance, this special issue offers an exhaustive review of the literature and a novel collection of evidence on the effects of firm age on performance, including a special focus of interest on innovation performance, financial performance, exports, survival and growth. This editorial positions the theme in the extant literature, and provides key definitions and challenges ahead in the field of evolutionary economics. It introduces the collection of articles composing the special issue. The papers offer a diversity of country contexts, as well as analytical approaches and methods. They include an exhaustive review of the literature on age and firms’ performance, and present original empirical studies focusing on the effects of age on firms’ economic outcomes on the one hand, and on innovation outcomes on the other hand. While most of the papers use econometric analysis, the level of analysis ranges from firm to individual

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“…generally, entrepreneurs navigating the pre-firm activities are difficult to find and subsequently difficult to study (Browder et al, 2019;Yang & Aldrich, 2017). Past research examines the entrepreneurial process through several lenses, including cognition (R. K. Mitchell et al, 2002;Shepherd & DeTienne, 2005) and informational economics (Fiet, 1996(Fiet, , 2007; however, how new venture ideas are fostered and developed is a confounding problem as most empirical studies rely on entrepreneurs' memories of past events.…”

Section: Makerspaces and Entrepreneurshipmentioning

confidence: 99%

Innovate within product lines or outside of them? An ethnographic study of corporate innovation in a corporate venture makerspace.

Crider¹

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Throughout my Ph.D., I received support and encouragement from many. Although only a few are mentioned here by name, I am sincerely grateful for each. I would like to thank Dr. Ryan Quinn, my chair. I learned more from you than I can possibly articulate. Thank you for your patience, encouragement, time, and willingness to see me through this process. Dr. Kristen Lucas, thank you for introducing me to and instructing me in qualitative research, giving me the opportunity to engage in research as an MBA student, and for encouraging me in so many ways. Dr. Robert Garrett, thank you for always being available to answer questions, provide advice, and reassure. And Dr. Howard Aldrich, thank you for your encouragement to conduct a dissertation on this topic, invaluable insights, and for exposing me to institutional theory. I am grateful to Dr. Jim Fiet who has invested so much in me and in the doctoral program. I would also like to thank the School of Graduate and Interdisciplinary Studies, the College of Business, and the Forcht Center for Entrepreneurship. To all the staff and faculty who have made this journey achievable, thank you! This dissertation would not have been possible without the cooperation, kindness, and time of all those at MakerHub. I would like to thank the management team for allowing me to conduct my dissertation there in the first place. Also, I would like to thank those who were always willing to answer questions, offer information, and provide context around actions and behaviors, particularly Bob, Ray, and Jean. iv This Ph.D. would not have happened without the encouragement of my family, particularly my mom and dad as well as the support of my in-laws, Tim and Judy Grogan. Lastly, I am grateful for the love of my wife, Claire, and our children, Jack and Ann.

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“The liability of newness” revisited: Theoretical restatement and empirical testing in emergent organizations

Cited by 86 publications

References 74 publications

The Liability of Volatility and How it Changes Over Time Among New Ventures

The Liability of Volatility and How it Changes Over Time Among New Ventures

Firm age and performance

Innovate within product lines or outside of them? An ethnographic study of corporate innovation in a corporate venture makerspace.

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