It's all about Timing: Age–Dependent Consequences of Founder Exits and New Member Additions

Christina Guenther, Simon Oertel and Peter Walgenbach

Entrepreneurship Theory and Practice, 2016, vol. 40, issue 4, 843-865

Abstract: This article explores the effects of changes in the initial venture team on a firm's failure risk by considering firm age. The results show that founder exits are especially critical for firm survival in the first years of a firm's existence, whereas the entry of a new team member is more beneficial in later years. Further, an investigation of multiple founder exits shows that the time that elapses between two exits has a U–shaped relationship with a firm's hazard risk. Discussing these findings in terms of imprinting and the liability of newness, we contribute to a more comprehensive understanding of venture team dynamics and firm survival.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:40:y:2016:i:4:p:843-865

DOI: 10.1111/etap.12148

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