It's All About Timing: Age‐Dependent Consequences of Founder Exits and New Member Additions. (15th January 2015)

• Record Type: Journal Article
• Authors: Guenther, Christina; Oertel, Simon; Walgenbach, Peter
• Is Part Of: Entrepreneurship theory and practice. Volume 40:Number 4(2016:Jul.)
• Page Start: 843
• Page End: 865
• Publication Date: 2015-01-15
• Subjects: Small business -- Periodicals; New business enterprises -- Periodicals; Entrepreneurship -- Periodicals; 658.421
• DOI: 10.1111/etap.12148
• Languages: English
• ISSNs: 1042-2587

Abstract

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.