The well-trodden path: Complementing market and entrepreneurial orientation with a strategic emphasis to influence IPO survival in the United States

Cong Feng, Pankaj C. Patel and Kexin Xiang

Journal of Business Research, 2020, vol. 110, issue C, 370-385

Abstract: Although initial public offering (IPO) survival is a well-studied phenomenon, the combinations of organizational orientations and strategic emphases that lower the odds of IPO failure (i.e., delisting within five years from IPO) remain less studied. Due to the resource-intensive nature of these orientations and the limits of managerial attention, committing to an orientation and a conducive strategic emphasis may be important to IPO survival. We ask whether post-IPO firms relying on market orientation (MO) and strategic emphasis on advertising have higher odds of survival than those relying on entrepreneurial orientation (EO) and strategic emphasis on research and development (R&D). In a sample of U.S. IPOs, we find that MO significantly improves the odds of IPO survival and greater strategic emphasis on value appropriation (advertising) further improves the odds of IPO survival. However, greater strategic emphasis on value creation (R&D) and EO have no influence on IPO survival.

Keywords: Market orientation; Entrepreneurial orientation; Strategic emphasis; Value appropriation; Value creation; IPO survival (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:110:y:2020:i:c:p:370-385

DOI: 10.1016/j.jbusres.2020.01.065

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