Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 633-661 |
| Number of pages | 29 |
| Journal | Rev. Manage. Sci. |
| Volume | 14 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 18 Sept 2018 |
Keywords
- Business failure
- Firm bankruptcy
- G33 Bankruptcy, Liquidation
- Insolvency causes
- L25 Firm Performance: Size, Diversification and Scope
- Logistic regression analysis
- M20 Business Economics General
- Resource-based view
- Small and medium-sized enterprises
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In: Rev. Manage. Sci., Vol. 14, No. 3, 18.09.2018, p. 633-661.
Research output: Contribution to journal › Article › peer-review
TY - JOUR
T1 - Firm age dynamics and causes of corporate bankruptcy: age dependent explanations for business failure
AU - Kücher, A.
AU - Mayr, S.
AU - Mitter, C.
AU - Duller, C.
AU - Feldbauer-Durstmüller, B.
N1 - Cited By :50 Export Date: 14 December 2023 Correspondence Address: Kücher, A.; Institute of Management Control and Consulting, Austria; email: [email protected] Funding text 1: Open access funding provided by Johannes Kepler University Linz. 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PY - 2018/9/18
Y1 - 2018/9/18
N2 - Theories of organizational failure predict that reasons for corporate demise may differ by firm age and life cycle stage. However, large-scale empirical studies that investigate the relationship between firm characteristics and specific causes of failure are scarce. This study therefore aims to shed light on firm mortality and firm age by analyzing a unique data set of bankrupt small and medium-sized enterprises. Separate statistical models for individual causes of failure are developed in which the liabilities of age are abstracted and disentangled from liabilities of size and industry specific variables on firm level. In this regard organizational ecology argumentation is integrated with resource-based view reasoning following the call for multi-theoretic approaches in organizational failure research. Results show that different failure causes dominate at specific stages of organizational life as defined by age quartiles. While young and adolescent firms predominantly fail due to internal shortcomings, mature small and medium-sized enterprises struggle more with increased competition and economic slowdowns.
AB - Theories of organizational failure predict that reasons for corporate demise may differ by firm age and life cycle stage. However, large-scale empirical studies that investigate the relationship between firm characteristics and specific causes of failure are scarce. This study therefore aims to shed light on firm mortality and firm age by analyzing a unique data set of bankrupt small and medium-sized enterprises. Separate statistical models for individual causes of failure are developed in which the liabilities of age are abstracted and disentangled from liabilities of size and industry specific variables on firm level. In this regard organizational ecology argumentation is integrated with resource-based view reasoning following the call for multi-theoretic approaches in organizational failure research. Results show that different failure causes dominate at specific stages of organizational life as defined by age quartiles. While young and adolescent firms predominantly fail due to internal shortcomings, mature small and medium-sized enterprises struggle more with increased competition and economic slowdowns.
KW - Business failure
KW - Firm bankruptcy
KW - G33 Bankruptcy, Liquidation
KW - Insolvency causes
KW - L25 Firm Performance: Size, Diversification and Scope
KW - Logistic regression analysis
KW - M20 Business Economics General
KW - Resource-based view
KW - Small and medium-sized enterprises
UR - https://www.mendeley.com/catalogue/ea53e72e-ea0a-33fa-ba69-886505864c4f/
U2 - 10.1007/s11846-018-0303-2
DO - 10.1007/s11846-018-0303-2
M3 - Article
SN - 1863-6683
VL - 14
SP - 633
EP - 661
JO - Rev. Manage. Sci.
JF - Rev. Manage. Sci.
IS - 3
ER -