Refugees at the door: Initial funding partners and new venture performance in a changing emerging market

Ryan Coles, Shon R. Hiatt, Grady W. Raines and Wesley D. Sine

Strategic Management Journal, 2025, vol. 46, issue 12, 2975-3022

Abstract: Research Summary Entrepreneurs must navigate complex environmental shifts that significantly impact firm survival. In this paper, we investigate how different firm‐level logics influence new venture survival in Jordan during changing social and economic conditions, such as a refugee influx. Our study reveals that these shifting environmental dynamics can differentially alter the performance outcomes of firms based on their internal logics that drive venture strategy. This dynamic relationship underscores how varying firm‐level logics can alter the impact of environmental changes on new venture performance. These findings provide guidance to entrepreneurs to be aware of their venture's underlying values and principles and consider how they may impact business decisions and outcomes in the face of changing circumstances. Managerial Summary This study examines the impact of the Syrian refugee crisis on new venture performance in Jordan, specifically investigating whether ventures' survival was affected by the source of their initial funding. The results show that ventures that received their initial funding from family were less likely to survive than those that received their initial funding from banks when significant numbers of refugees entered Jordan. Our paper suggests that this difference may be due to how the guiding principles of firms shaped decisions around resource allocation and strategic adaptation. For entrepreneurs and investors, this suggests that the source of a venture's initial funding can be a hidden strength or vulnerability, depending on the social and economic disruptions it faces.

Date: 2025
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