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A Terminal Assessment of Stages Theory: Introducing a Dynamic States Approach to Entrepreneurship

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  • Jonathan Levie
  • Benyamin B. Lichtenstein

Abstract

Stages of growth models were the most frequent theoretical approach to understanding entrepreneurial business growth from 1962 to 2006; they built on the growth imperative and developmental models of that time. An analysis of the universe of such models (n = 104) published in the management literature showed no consensus on basic constructs of the approach, and no empirical confirmation of stages theory. However, by changing two propositions of stages theory, a new dynamic states approach was derived. The dynamic states approach has far greater explanatory power than its precursor, and is compatible with leading edge research in entrepreneurship.

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  • Jonathan Levie & Benyamin B. Lichtenstein, 2010. "A Terminal Assessment of Stages Theory: Introducing a Dynamic States Approach to Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(2), pages 317-350, March.
    • Handle: RePEc:sae:entthe:v:34:y:2010:i:2:p:317-350
    DOI: 10.1111/j.1540-6520.2010.00377.x
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