Industry profitability matters: The value of sustainable growth rate and distance from bankruptcy as enablers of venture survival

Industries with a higher return on invested capital (ROIC), or profit for each unit of assets invested, could be particularly appealing to entrepreneurs. Yet, why do some ventures in industries with high ROIC survive while others do not? Drawing on the strategic fit framework, we posit that ventures with a higher sustainable growth rate (i.e., matching internal growth with industry ROIC) or stability (i.e., lower chances of bankruptcy) are more...