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The Planned Decision To Transfer An Entrepreneurial Company

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  • H. LEROY
  • S. MANIGART
  • M. MEULEMAN

Abstract

We expand and test Ajzen’s Theory of Planned Behavior (TPB) to explain the transfer of an entrepreneurial venture upon exit. Our results confirm TPB: transfer intentions and perceived control over the transfer are the main drivers of the likelihood to transfer. In addition, contextual business characteristics complement TPB in explaining transfer outcomes. While intangibility of firm assets directly impacts transfer outcomes, business viability is partially mediated via transfer intentions. These results shed more light on the role of implicit planning in transfer decisions and help to better understand contextual factors impacting the process of entrepreneurial exits.

Suggested Citation

  • H. Leroy & S. Manigart & M. Meuleman, 2009. "The Planned Decision To Transfer An Entrepreneurial Company," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/577, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:09/577
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    References listed on IDEAS

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    2. Bjuggren, Per-Olof & Sund, Lars-Goran, 2002. "A Transaction Cost Rationale for Transition of the Firm within the Family," Small Business Economics, Springer, vol. 19(2), pages 123-133, September.
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    9. Jerome A. Katz & Howard E. Aldrich & Theresa M. Welbourne & Pamela M. Williams, 2000. "Guest Editor's Comments Special Issue on Human Resource Management and the SME: Toward a New Synthesis," Entrepreneurship Theory and Practice, , vol. 25(1), pages 7-10, October.
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    Cited by:

    1. S. Balcaen & J. Buyze & H. Ooghe, 2009. "Financial distress and firm exit: determinants of involuntary exits, voluntary liquidations and restructuring exits," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/598, Ghent University, Faculty of Economics and Business Administration.
    2. Ali Hadj Khalifa & Mohamed Mahjoub Dhiaf, 2016. "The Impact Of Entrepreneurship Education On Entrepreneurial Intention: The Uae Context," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 14(1), pages 119-128, December.
    3. van Teeffelen Lex & Uhlaner Lorraine M., 2013. "Firm Resource Characteristics and Human Capital as Predictors of Exit Choice: An Exploratory Study of SMEs," Entrepreneurship Research Journal, De Gruyter, vol. 3(1), pages 84-108, January.
    4. Yamakawa, Yasuhiro & Cardon, Melissa S., 2017. "How prior investments of time, money, and employee hires influence time to exit a distressed venture, and the extent to which contingency planning helps," Journal of Business Venturing, Elsevier, vol. 32(1), pages 1-17.
    5. Florian Kreer & René Mauer & Steffen Strese & Malte Brettel, 2018. "On private equity exits of family firms in the German Mittelstand," Journal of Business Economics, Springer, vol. 88(3), pages 503-529, May.
    6. Harkins Jason & Forster-Holt Nancy, 2014. "Resource Dependence and the Exits of Young Firms," Entrepreneurship Research Journal, De Gruyter, vol. 4(4), pages 1-27, October.
    7. Geraldine Ryan & Bernadette Power & Noreen McCarthy & Paul Braidford, 2011. "Regional Influences of Business Transfers within the British Isles," ERSA conference papers ersa10p1094, European Regional Science Association.
    8. Peng XU, 2019. "Exit of Small Businesses: Differentiating between Insolvency, Voluntary Closures and M&A," Discussion papers 19051, Research Institute of Economy, Trade and Industry (RIETI).

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    Keywords

    entrepreneurial exit; exit process; transfer decision; Theory of Planned Behavior;
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