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New Venture Growth: A Review and Extension

Published on Dec 1, 2006in Journal of Management9.06
· DOI :10.1177/0149206306293860
Brett Anitra Gilbert9
Estimated H-index: 9
(J. Mack Robinson College of Business),
Patricia P. McDougall33
Estimated H-index: 33
(IU: Indiana University Bloomington),
David B. Audretsch93
Estimated H-index: 93
(IU: Indiana University)
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Abstract
New venture growth differs from that of established firms and is an important topic for scholarly inquiry. Current literature on new venture growth has focused primarily on why new ventures grow to the exclusion of how and where that growth is occurring. This article reviews the literature on new venture growth and addresses key limitations within this stream of research. It unites the literature on why new ventures grow with that of how (through internal or external means) and where (in domestic or international markets) new ventures grow to advance an important research agenda for future new venture growth studies.
  • References (115)
  • Citations (371)
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References115
Newest
Published on Oct 2, 2007in The International Journal of Management
Anne Bøllingtoft6
Estimated H-index: 6
(AU: Aarhus University),
John P. Ulhøi17
Estimated H-index: 17
(AU: Aarhus University)
+ 1 AuthorsHelle Neergaard16
Estimated H-index: 16
This paper addresses various financial issues in the context of knowledge-intensive entrepreneurship. The study can be seen as an empirical test of parts of a theoretical framework previously developed to identify and explain key factors affecting the survival and preliminary growth of new ventures in high-tech and knowledge-intensive sectors. The paper takes a starting point in the literature on venture capital, theory on risk and trusts and network theory. The results show that there is a high...
Published on Mar 1, 2006in Journal of Business Venturing6.33
Jonathan D. Arthurs13
Estimated H-index: 13
(WSU: Washington State University),
Lowell W. Busenitz33
Estimated H-index: 33
(OU: University of Oklahoma)
Explores the value that is added by venturecapitalists to a venture after the initial public offering (IPO).Theresource-based model is used to differentiate between dynamic capabilities andentrepreneurial capabilities.Data used in the analysis consisted of 268firms (134 matched pairs) that had completed their public offerings between1990 and 1994. The results indicate that ventures with venture capitalist backingdemonstrate greater dynamic capabilities with respect to product risk andmanagement-...
Published on Mar 1, 2006in Journal of Business Venturing6.33
Michael D. Ensley18
Estimated H-index: 18
(RPI: Rensselaer Polytechnic Institute),
Craig L. Pearce29
Estimated H-index: 29
(SPbU: Saint Petersburg State University),
Keith M. Hmieleski22
Estimated H-index: 22
(TCU: Texas Christian University)
Examines the impact of entrepreneur leadership behavior onfirm performance and assesses the moderating influence of environmentaldynamism on the relationship between leadership behavior and firm performance.A discussion of transactional leadership (i.e., the exchange relationshipsbetween leaders and their subordinates) and transformational leadership (i.e.,the process by which leaders and subordinates coordinate their efforts toeffect major change) leads to the development of a model of the mode...
Published on Mar 1, 2006in Journal of Business Venturing6.33
Timothy B. Folta23
Estimated H-index: 23
(Purdue University),
Arnold C. Cooper32
Estimated H-index: 32
(Purdue University),
Yoon-suk Baik1
Estimated H-index: 1
(Purdue University)
This study clarifies the relationship betweengeographic cluster size and firm performance. Following a review of relevantliterature, several hypotheses are proposed. Data on 789 private and publicbiotechnology firms founded in the United States between 1973 and 1998 are usedto test the hypotheses. According to the data, economies of agglomeration(i.e., clusters) benefit firms in their ability to innovate through patentingand to attract alliance and private equity partners. At the same time, the ...
Published on Jun 19, 2006
Zoltan J. Acs70
Estimated H-index: 70
(GMU: George Mason University),
Catherine Armington11
Estimated H-index: 11
The spillovers in knowledge among largely college-educated workers were among the key reasons for the impressive degree of economic growth and spread of entrepreneurship in the United States during the 1990s. Prior 'industrial policies' in the 1970s and 1980s did not advance growth because these were based on outmoded large manufacturing models. Zoltan Acs and Catherine Armington use a knowledge spillover theory of entrepreneurship to explain new firm formation rates in regional economies during...
Published on Jan 1, 2006in Journal of Business Venturing6.33
Allen C. Amason18
Estimated H-index: 18
(UGA: University of Georgia),
Rodney C. Shrader10
Estimated H-index: 10
(UIC: University of Illinois at Chicago),
George H. Tompson1
Estimated H-index: 1
(College of Business Administration)
Abstract We distinguish novelty from newness and argue that the tasks of new venture top management teams vary with new venture novelty. We argue that as novelty increases, the information processing requirements on the TMT change as well. Because a team's demographic characteristics influence its information processing abilities, venture performance should reflect, at least partially, the fit between the characteristics of the TMT and the level of venture novelty. Evidence from a large sample o...
Published on Nov 1, 2005in Journal of Business Venturing6.33
James J. Chrisman61
Estimated H-index: 61
(MSU: Mississippi State University),
Ed McMullan4
Estimated H-index: 4
(U of C: University of Calgary),
Jeremy Hall24
Estimated H-index: 24
(U of C: University of Calgary)
This article further develops a theory of guided preparation and new venture performance and tests its fundamental relationships on a sample of 159 new ventures that received outsider assistance 5–9 years earlier and had been in business for 3–8 years. The results suggest that the long-term growth of the ventures since start-up is significantly related to guided preparation. However, a curvilinear model rather, than a linear model, was found to best capture the relationships of interest. This su...
Published on Sep 1, 2005in Journal of Business Venturing6.33
Bruce R. Barringer7
Estimated H-index: 7
(College of Business Administration),
Foard F. Jones4
Estimated H-index: 4
(College of Business Administration),
Donald O. Neubaum21
Estimated H-index: 21
(College of Business Administration)
A group of firms that is attracting attention are rapid-growth firms. These firms are of particular interest because rapid growth is an indication of market acceptance and firm success. By studying rapidgrowth firms, researchers can help all firms better understand the attributes associated with firm growth. Despite these positive outcomes, however, rapid firm growth is difficult to achieve and maintain. This study adds to the literature through a quantitative content analysis of the narrative d...
Published on Aug 1, 2005in Academy of Management Journal7.19
Linda Canina16
Estimated H-index: 16
(Cornell University),
Cathy A. Enz34
Estimated H-index: 34
(Cornell University),
Jeffrey S. Harrison27
Estimated H-index: 27
(UR: University of Richmond)
This study provides evidence regarding the strategic dynamics of competitive clusters. Firms that agglomerate (co-locate) may benefit from the differentiation of competitors without making similar differentiating investments themselves. Alternatively, co-locating with a high percentage of firms with low-cost strategic orientations reduces performance for firms pursuing high levels of differentiation. Further, the lowest-cost providers with the greatest strategic distance from the norm of the com...
Published on Aug 1, 2005in Academy of Management Journal7.19
Gerard H. Gaynor45
Estimated H-index: 45
(UW: University of Wisconsin-Madison)
Empirical findings from publicly traded firms and behavioral arguments suggest a positive influence of resource slack on financial performance. While this area has remained unexplored in privately held firms, conceptual arguments indicate that resource constraints may enhance performance. Longitudinal data on 900 privately held firms confirm the differing influences of forms of slack on performance. Results indicate that a combination of behavioral and resource constraints arguments are necessar...
Cited By371
Newest
Published on Jan 1, 2020in Journal of World Business5.79
Sarah Park (UKC: University of Kent), Joseph A. LiPuma5
Estimated H-index: 5
(BU: Boston University)
Abstract This study examines how different types of venture capital relate to new venture internationalization. Using a sample of 646 U.S. new ventures that executed IPOs between 1995 and 2010, we find that ventures with foreign or corporate venture capital have higher levels of international intensity. We also investigate the moderating role of VC reputation on the relationship between foreign venture capital and international intensity and corporate venture capital and international intensity....
Published on Jan 4, 2018in Journal of Small Business Management3.12
Cristiano Bellavitis4
Estimated H-index: 4
,
Dzidziso Samuel Kamuriwo7
Estimated H-index: 7
,
Ulrich Hommel11
Estimated H-index: 11
A venture capitalist (VC) needs to trade off benefits and costs when attempting to mitigate agency problems in their investor-investee relationship. We argue that signals of ventures complement the VC’s capacity to screen and conduct a due diligence during the pre-investment phase, but its attractiveness may diminish in institutional settings supporting greater transparency. Similarly, whereas a VC may opt for contractual covenants to curb potential opportunism by ventures in the post-investment...
Published on Sep 21, 2019in Sustainability2.59
The answer to the question, “Which factors determine the sustainable growth of small- and medium-sized enterprises (SMEs)?” is still fragmented. While previous studies have paid attention to a firm’s entrepreneurial orientation (EO) as a key driver of SME growth, it is often overlooked that contextual factors can be crucial in order for EO to be effective in yielding sustainable growth in SMEs. This paper focuses on the role of relative performance as a boundary condition in the relationship bet...
Published on Jul 2, 2019in European Management Review1.60
Jonathan Bauweraerts4
Estimated H-index: 4
(University of Mons),
Vanessa Diaz-Moriana1
Estimated H-index: 1
(UIB: University of the Balearic Islands),
Unai Arzubiaga3
Estimated H-index: 3
(UPV/EHU: University of the Basque Country)
Published on Dec 3, 2018in Journal of Management Studies5.84
Davide Hahn2
Estimated H-index: 2
(University of Bergamo),
Tommaso Minola12
Estimated H-index: 12
(University of Bergamo),
Kimberly A. Eddleston35
Estimated H-index: 35
(NU: Northeastern University)
Published on Jun 1, 2019in Asia Pacific Journal of Management2.74
Xiaoyu Yu9
Estimated H-index: 9
(SHU: Shanghai University),
Yajie Li1
Estimated H-index: 1
(SHU: Shanghai University)
+ 3 AuthorsFan Xia1
Estimated H-index: 1
Driven by solid economic developments, emerging economies are experiencing significant institutional change, particularly in regulatory structures and market systems. Coupled with fierce market competition and reforms, serious challenges for the sustainable development of new ventures are created due to smallness and newness liabilities. This study examines how new ventures grow and adapt to the rapid environmental shifts in emerging economies by exploring the effects of entrepreneurial bricolag...
Published on Jun 1, 2019in Journal of Management Studies5.84
Stephanie Lu Wang9
Estimated H-index: 9
(IU: Indiana University Bloomington),
Yadong Luo64
Estimated H-index: 64
(UM: University of Miami)
+ 2 AuthorsNikhil Celly2
Estimated H-index: 2
(UH: University of Houston)
Rubina Romanello2
Estimated H-index: 2
(University of Udine),
Maria Chiarvesio6
Estimated H-index: 6
(University of Udine)
The literature on early internationalization has evolved rapidly in the last few decades. Firms that achieve early and rapid internationalization have emerged as newcomers in the international arena. Disclosed in the late 1980s, international new ventures and born globals today are well known by academics, practitioners, and policymakers. However, the rapid evolution of literature on this topic has produced a considerable corpus of articles in just a few years, discouraging the realization of it...
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