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The Multiple Effects of Business Planning on New Venture Performance

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  • Andrew Burke
  • Stuart Fraser
  • Francis J. Greene

Abstract

We investigate the multiple effects of writing a business plan prior to start-up on new venture performance. We argue that the impact of business plans depends on the purpose for and circumstances in which they are being used. We offer an empirical methodology which can account for these multiple effects while disentangling real impact effects from selection effects. We apply this to English data where we find that business plans promote employment growth. This is found to be due to the impact of the plan and not selection effects. Copyright (c) 2009 Blackwell Publishing Ltd and Society for the Advancement of Management Studies.

Suggested Citation

  • Andrew Burke & Stuart Fraser & Francis J. Greene, 2010. "The Multiple Effects of Business Planning on New Venture Performance," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 391-415, May.
  • Handle: RePEc:bla:jomstd:v:47:y:2010:i:3:p:391-415
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:jbrese:v:83:y:2018:i:c:p:173-185 is not listed on IDEAS
    2. Marc Fréchet & Hervé Goy, 2017. "Does strategy formalization foster innovation? Evidence from a French sample of small to medium-sized enterprises," Post-Print hal-01623788, HAL.
    3. Tristan Boyer & Régis Blazy, 2014. "Born to be alive? The survival of innovative and non-innovative French micro-start-ups," Small Business Economics, Springer, vol. 42(4), pages 669-683, April.
    4. Mahnoor Asif & Anum Ellahi, 2016. "Correlates of Entrepreneurship in Pakistan: The Regional Dimension," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 193-210, September.
    5. repec:eee:jobuve:v:3:y:2015:i:c:p:12-15 is not listed on IDEAS
    6. Sandra Gottschalk & Francis J. Greene & Bettina Müller, 2017. "The impact of habitual entrepreneurial experience on new firm closure outcomes," Small Business Economics, Springer, vol. 48(2), pages 303-321, February.
    7. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
    8. repec:spr:rvmgts:v:12:y:2018:i:1:d:10.1007_s11846-016-0217-9 is not listed on IDEAS

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