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

Stewart Thornhill () and Raphael Amit ()
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Stewart Thornhill: Richard Ivey School of Business, University of Western Ontario, 1151 Richmond St. N., London, Ontario, Canada N6A 3K7
Raphael Amit: Management Department, Room 2012 SH-DH, The Wharton School, University of Pennsylvania, 3620 Locust Walk, Philadelphia, Pennsylvania 19104-6364

Organization Science, 2003, vol. 14, issue 5, 497-509

Abstract: Systematic differences in the determinants of firm failure between firms that fail early in their life and those that fail after having successfully negotiated the early liabilities of newness and adolescence are identified. Analysis of data from 339 Canadian corporate bankruptcies suggests that failure among younger firms may be attributable to deficiencies in managerial knowledge and financial management abilities. Failure among older firms, on the other hand, may be attributable to an inability to adapt to environmental change.

Keywords: Liability of Newness; Resource-Based View; Bankruptcy (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (163)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:14:y:2003:i:5:p:497-509

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