Entrepreneurship Theory and Practice 2000

The Value of Patience and Start-up Firms: A Re-Examination of Entry Timing for Emerging Markets

Linda F. Tegarden¹; Ann E. Echols²; Donald E. Hatfield^2,1

¹ Virginia Tech · ² Pennsylvania State University

Abstract

We investigate how changing technological and industry conditions in emerging markets, driven by product innovation, affect the exit rates of start-up versus established firms. We find that these changing conditions have different outcomes for start-up and established firms. We assert that the higher rates of exit for start-ups compared to established firms is due to start-up firms' lower ability to adapt both to technology and industry changes that occur with technological progress. We test this assertion by comparing the rate of exit of start-up firms to established firms that entered the U.S. personal computer market between 1975 and 1988.

DOI

10.1177/104225870002400403

Sources

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APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓