Making sense of entrepreneurial exit strategies: A typology and test

Dawn R. DeTienne, Alexander McKelvie and Gaylen N. Chandler

Journal of Business Venturing, 2015, vol. 30, issue 2, 255-272

Abstract: Entrepreneurial exit is a major event in the development of a venture. However, we have little understanding of the factors that drive the development of an important pre-cursor to exit: the exit strategy of the founder. Based on the existing literature, we develop a typology of entrepreneurial exit strategies consisting of three higher-level exit categories (i.e., financial harvest, stewardship, and voluntary cessation) and develop an initial test of our typology. Specifically, we examine entrepreneurs' perceived innovativeness of their opportunity, motivational considerations, decision-making approach, founding team, and firm size. Our results show different predictors for each of the three exit strategy types and represent a significant contribution to the understanding of exit strategies in new ventures.

Keywords: Entrepreneurial exit; Exit strategies; Causation; Motivation; Stewardship (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (66)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:30:y:2015:i:2:p:255-272

DOI: 10.1016/j.jbusvent.2014.07.007

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