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Reorganisation success in bankruptcy: The role of entrepreneur experience, characteristics and commitment

  • S. Mayr
  • , C. Mitter
  • , C. Duller
  • , V. Mooshammer
  • Institute of Management Control and Consulting, Johannes Kepler University Linz
  • Department of Economics and Finance, University of the Free State
  • Institute of Applied Statistics, Johannes Kepler University Linz

Research output: Contribution to journalArticlepeer-review

Abstract

We examine how entrepreneur experience, characteristics and commitment impact the success of a firm's reorganisation. We refer to the resource-based view and upper echelons theory as a theoretical basis. Empirical research is based on a sample of 158 bankrupt Austrian small- and mediumsized enterprises (SMEs). To test our model, we applied bivariate analyses and logistic regression. The personality of the entrepreneur, in particular strong dynamic-creative talents, as well as concentrated ownership and financial contributions as reflections of owners' commitment appear to be important drivers for overcoming a crisis successfully. While management and industry experience of the entrepreneur as well as education seem not to influence reorganisation success, having a reorganisation plan appears to be the most decisive factor. Our findings indicate that the entrepreneurial traits that are essential for company growth and the avoidance of failure do not impact the success of the firm's reorganisation.
Original languageEnglish
Pages (from-to)528-548
Number of pages21
JournalInt. J. Entrep. Venturing
Volume13
Issue number5
DOIs
Publication statusPublished - 2021

Keywords

  • Bankruptcy
  • Entrepreneur characteristics
  • Financial crisis
  • Reorganisation
  • Small- and medium-sized enterprises
  • SMEs

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