Venture Survival in a Transitional Economy

Marjorie A. Lyles; Todd Saxton; Kathleen Watson

doi:10.1016/j.jm.2003.03.001

Venture Survival in a Transitional Economy

Marjorie A. Lyles¹; Todd Saxton¹; Kathleen Watson²

¹ Indiana University Kelley School of Business, 801 West Michigan Street, Indianapolis, IN 46202-5151, USA · ² College of Business Administration, California State University San Marcos, 2245 Craven Hall, San Marcos, CA 92096, USA

Journal of Management 2004

Many formerly controlled economies have undergone discontinuous transformations in their approach to markets, institutional environments, and the role of government in economic activity. We study the factors that affect venture survival in a transitional economy through a two-stage study of private ventures in Hungary. We find that ventures survive under uncertainty, even without significant government support. Industry experience, networking activities, and the strategic orientation of the firms predict survival. Contrary to our predictions, SOE experience, access to infrastructure, and differentiation strategies do not significantly differentiate survivors.

DOI: 10.1016/j.jm.2003.03.001
Volume: 30 (3)
Pages: 351-375
Language: en
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