Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View

By Stewart Thornhill, Raphael Amit. Organ. Sci., 2003

775 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/d65c691e962a0f99e6d1253ed1a94c99a2fc1703

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Citations in the corpus

The Influence of Entrepreneurs’ Credentials and Impression Management Behaviors on Perceptions of New Venture Legitimacy (2012, background): “…“novelty in management,” based on its team’s lack of industry and start-up experience, could decrease the venture’s cognitively legitimacy (Shepherd & Zacharakis, 2003) and, in turn, increase its chances of failing because of a liability of newness (Shepherd et al., 2000; Thornhill & Amit, 2003).”
The Reasons and Symptoms of Failure in SME (2011, background): “liability of newness (Stinchombe 1965, quoted in Thornhill and Amit 2003 ).”
The Relationship between Entrepreneurial Self‐Efficacy and Firm Performance: A Meta‐Analysis of Main and Moderator Effects* (2017, background): “As compared to young firms that face the liability of newness (Stinchcombe 1965), old firms possess a particular resource base that assists entrepreneurs in efficiently operating in a given condition (Amit and Schoemaker 1993; Thornhill and Amit 2003).”
Performance Configurations over Time: Implications for Growth– and Profit–Oriented Strategies (2009, background): “Thornhill and Amit (2003) found that while new firms were more likely to fail because of deficiencies in managerial knowledge and financial management, older firms were more likely to fail as a result of an inability to strategically adapt to changes in their external environment.”
Firm age dynamics and causes of corporate bankruptcy: age dependent explanations for business failure (2018, methodology): “1997; Lukason and Hoffman 2015; Thornhill and Amit 2003).”
Does Family Involvement in Management Reduce the Risk of Business Failure? The Moderating Role of Entrepreneurial Orientation (2016, background): “We carried out controls on the effects of environmental characteristics, such as dynamism and munificence, which are likely to affect failure risks (Thornhill & Amit, 2003).”
Nonlinear Effects of Entrepreneurial Orientation on Small Firm Performance: The Moderating Role of Resource Orchestration Capabilities (2013, background): “These firms suffer from lower levels of slack resources, decreased efficiency when using their resources, and inferior legitimacy associated with the products their resources produce (Stinchcombe, 1965; Thornhill and Amit, 2003).”
Establishment exits in Germany: the role of size and age (2012, background): “Using a sample of 339 bankruptcies in Canada, Thornhill and Amit (2003) find that failures of young firms are more often attributed to a lack of managerial skills while failures of older firms are more often attributed to environmental changes, which is consistent with the liability of newness and t”
Failure processes and causes of company bankruptcy: a typology (2008, background): “This is a very interesting and valuable area that has not previously been investigated indepth (Balcaen & Ooghe, 2006; Thornhill & Amit, 2003).”
Regulatory environments and the location decision: evidence from the early foreign market entries of new-technology-based firms (2008, neutral): “The chances of a young firm recovering from a major strategic error incurring significant unplanned costs is remote (Thornhill and Amit, 2003).”
Social Movements as Catalysts for Corporate Social Innovation: Environmental Activism and the Adoption of Green Information Systems (2019, neutral): “Finally, because older firms, in contrast to younger firms, have shown an ability to adapt and survive (Thornhill & Amit, 2003), we also included a control for firm age, measured in number of years.”
Navigators through the storm: A review of organization theories and the behavior of incumbent firms during transitions (2017, background): “, 2002) is likely to cause some of them to possess resources that are valuable in the new environment (Miller and Shamsie, 1996; Rumelt, 1984; Thornhill and Amit, 2003).”
Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs (2011, background): “While new ventures draw on resources that are less specialized, but flexibly deployable, mature firms have a specialized resource base that enables them to efficiently operate in given market conditions (Amit and Schoemaker, 1993; Thornhill and Amit, 2003).”