Learning from Failure: Organizational Mortality and the Resource-based View
AbstractThis paper examines the factors underlying firm failure, and compares the failure mechanisms for young firms against those of older organizations. This paper suggests that there are systematic differences between the determinants of firm failure for firms that fail early in life and those that fail after having successfully negotiated the early liabilities of newness and adolescence. Data from 339 Canadian corporate bankruptcies confirm that younger firms fail because of inadequacies in managerial knowledge and financial management abilities. On the other hand, older firms are more likely to fail because of an inability to adapt to environmental change.
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Bibliographic InfoPaper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2003202e.
Date of creation: 08 Aug 2003
Date of revision:
Business performance and ownership; Labour; Financial statements and performance; Entry; exit; mergers and growth; Workplace organization; innovation; performance; Small and medium-sized businesses;
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