Entrepreneurial Entropy: A Resource Exhaustion Theory of Firm Failure From Entrepreneurial Orientation
| Autor: | Nazha Gali, Mathew (Mat) Hughes, Robert E. Morgan, Catherine L. Wang |
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| Jazyk: | angličtina |
| Rok vydání: | 2023 |
| Předmět: |
Economics and Econometrics
Asset specificity liquidity pacing Survival bias survival bias Resource exhaustion theory Entropy Change in EO organizational resource slack entrepreneurial orientation Entrepreneurial orientation firm failure Asset specificty change in EO Liquidity Organizational resource slack Pacing resource exhaustion theory underperformance Business and International Management entropy Firm failure Underperformance asset specificity |
| ISSN: | 1042-2587 |
| Popis: | Supplementary Material: available online at: https://journals.sagepub.com/doi/10.1177/10422587231151957#supplementary-materials . Copyright © The Author(s) 2023. Entrepreneurial orientation (EO) can generate substantial gains and losses, exhausting firm resources and straining a firm’s ability to sustain its activities. We develop and test a resource exhaustion theory of firm failure, conceptualizing conditions under which EO increases the risk of firm failure by generating unsustainable amounts of entrepreneurial entropy. Using panel data on 804 large U.S. high-technology firms over 18 years, we find that EO increases the risk of firm failure, which is mediated by the lack of organizational resource slack. An abrupt change in EO increases the risk of firm failure, especially among underperforming firms The author(s) received no financial support for the research, authorship, and/or publication of this article. |
| Databáze: | OpenAIRE |
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