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Entrepreneurial Failure
Entrepreneurs act in environments of great risk and high uncertainty, and as a result, failure is a common occurrence. For this volume, Professor Shepherd has made a judicious selection of published articles, which explore the antecedents to and potential outcomes of entrepreneurial failure. By understanding these causes and consequences, entrepreneurs may become better able to manage failure, to reduce its costs and to capitalize on its benefits.
More Information
Critical Acclaim
Contributors
Contents
More Information
Entrepreneurs act in environments of great risk and high uncertainty, and as a result, failure is a common occurrence. For this volume, Professor Shepherd has made a judicious selection of published articles, which explore the antecedents to and potential outcomes of entrepreneurial failure. By understanding these causes and consequences, entrepreneurs may become better able to manage failure, to reduce its costs and to capitalize on its benefits.
With an insightful original introduction by the editor, the book provides an authoritative guide to current scholarly debate in this topical area and lays a foundation for future study.
With an insightful original introduction by the editor, the book provides an authoritative guide to current scholarly debate in this topical area and lays a foundation for future study.
Critical Acclaim
‘In the desert of success-inclined literature on entrepreneurship, this book is an oasis. . . The book is highly relevant for those interested in failure as a topic of research and as a general reference for entrepreneurship researchers at large. Every section with a few selected papers presents an area of research by itself. . . I thoroughly enjoyed reading through the volume and hope to keep digging back into it when I get my hands muddy with research on entrepreneurial failure.’
– Raj K. Shankar, The Journal of Entrepreneurship
– Raj K. Shankar, The Journal of Entrepreneurship
Contributors
36 articles, dating from 1986 to 2011
Contributors include: H. Aldrich, R. Amit, J. Cope, E. Douglas, R. McGrath, D.A. Levinthal, H.Patzelt, A. Swaminathan, D. Ucbasaran, J. Wiklund
Contributors include: H. Aldrich, R. Amit, J. Cope, E. Douglas, R. McGrath, D.A. Levinthal, H.Patzelt, A. Swaminathan, D. Ucbasaran, J. Wiklund
Contents
Contents:
Acknowledgements
Introduction Dean A. Shepherd
PART I ANTECEDENTS OF ENTREPRENEURIAL FAILURE
A Initial Conditions
1. Mark Fichman and Daniel A. Levinthal (1991), ‘Honeymoons and the Liability of Adolescence: A New Perspective on Duration Dependence in Social and Organizational Relationships’
2. Anand Swaminathan (1996), ‘Environmental Conditions at Founding and Organizational Mortality: A Trial-by-Fire Model’
3. Steven W. Bradley, Howard Aldrich, Dean A. Shepherd and Johan Wiklund (2011), ‘Resources, Environmental Change, and Survival: Asymmetric Paths of Young Independent and Subsidiary Organizations’
B Managerial and Strategic
4. Stewart Thornhill and Raphael Amit (2003), ‘Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View’
5. Dean A. Shepherd, Evan J. Douglas and Mark Shanley (2000), ‘New Venture Survival: Ignorance, External Shocks, and Risk Reduction Strategies’
6. Mathew L.A. Hayward, Dean A. Shepherd and Dale Griffin (2006), ‘A Hubris Theory of Entrepreneurship’
7. Johan Wiklund and Dean A. Shepherd (2011), ‘Where to From Here?, EO-as-Experimentation, Failure, and Distribution of Outcomes’
C Financial Predictors
8. Erkki K. Laitinen (1992), ‘Prediction of Failure of a Newly Founded Firm’
9. Johan Wiklund, Ted Baker and Dean Shepherd (2010), ‘The Age-Effect of Financial Indicators as Buffers against the Liability of Newness’
D Evolutionary
10. Howard Aldrich and Ellen R. Auster (1986), ‘Even Dwarfs Started Small: Liabilities of Age and Size and Their Strategic Implications’
11. Josef Brüderl and Rudolf Schüssler (1990), ‘Organizational Mortality: The Liabilities of Newness and Adolescence’
12. Howard E. Aldrich and Martha Argelia Martinez (2001), ‘Many are Called, but Few are Chosen: An Evolutionary Perspective for the Study of Entrepreneurship’
PART II CONSEQUENCES OF ENTREPRENEURIAL FAILURE
A Learning from Failure (General)
13. Rita Gunther McGrath (1999), ‘Falling Forward: Real Options Reasoning and Entrepreneurial Failure’
14. Mark D. Cannon and Amy C. Edmondson (2005), ‘Failing to Learn and Learning to Fail (Intelligently): How Great Organizations Put Failure to Work to Innovate and Improve’
15. Deniz Ucbasaran, Paul Westhead and Mike Wright (2009), ‘The Extent and Nature of Opportunity Identification by Experienced Entrepreneurs’
B Motivation to Try Again
16. Deniz Ucbasaran, Paul Westhead, Mike Wright and Manuel Flores (2010), ‘The Nature of Entrepreneurial Experience, Business Failure and Comparative Optimism’
17. Ronald K. Mitchell, J. Robert Mitchell and J. Brock Smith (2008), ‘Inside Opportunity Formation: Enterprise Failure, Cognition, and the Creation of Opportunities’
18. Ian J. Walsh and Jean M. Bartunek (2011), ‘Cheating the Fates: Organizational Foundings in the Wake of Demise’
C Consequences of Business Failure
19. Dean A. Shepherd (2003), ‘Learning from Business Failure: Propositions of Grief Recovery for the Self-Employed’
20. Dean A. Shepherd (2004), ‘Educating Entrepreneurship Students About Emotion and Learning From Failure’
21. Dean A. Shepherd (2009), ‘Grief Recovery from the Loss of a Family Business: A Multi- and Meso-Level Theory’
22. Jason Cope (2011), ‘Entrepreneurial Learning from Failure: An Interpretative Phenomenological Analysis’
D Consequences of Project Failure
23. Dean A. Shepherd and Melissa S. Cardon (2009), ‘Negative Emotional Reactions to Project Failure and the Self-Compassion to Learn from the Experience’
24. Dean A. Shepherd, Jeffrey G. Covin and Donald F. Kuratko (2009), ‘Project Failure from Corporate Entrepreneurship: Managing the Grief Process’
25. Dean A. Shepherd, Holger Patzelt and Marcus Wolfe (2011), ‘Moving Forward from Project Failure: Negative Emotions, Affective Commitment, and Learning from the Experience’
26. Andrew C. Corbett, Heidi M. Neck and Dawn R. DeTienne (2007), ‘How Corporate Entrepreneurs Learn from Fledgling Innovation Initiatives: Cognition and the Development of a Termination Script’
E Blame and Stigma
27. Robert I. Sutton and Anita L. Callahan (1987), ‘The Stigma of Bankruptcy: Spoiled Organizational Image and Its Management’
28. Dean A. Shepherd and J. Michael Haynie (2011), ‘Venture Failure, Stigma, and Impression Management: A Self-Verification, Self-Determination View’
29. Andrew L. Zacharakis, G. Dale Meyer and Julio DeCastro (1999), ‘Differing Perceptions of New Venture Failure: A Matched Exploratory Study of Venture Capitalists and Entrepreneurs’
30. Jason Cope, Frank Cave and Sue Eccles (2004), ‘Attitudes of Venture Capital Investors towards Entrepreneurs with Previous Business Failure’
F Delaying Failure
31. Javier Gimeno, Timothy B. Folta, Arnold C. Cooper and Carolyn Y. Woo (1997), ‘Survival of the Fittest? Entrepreneurial Human Capital and the Persistence of Underperforming Firms’
32. Dawn R. DeTienne, Dean A. Shepherd and Julio O. De Castro (2008), ‘The Fallacy of “Only the Strong Survive”: The Effects of Extrinsic Motivation on the Persistence Decisions for Under-Performing Firms’
33. Dean A. Shepherd, Johan Wiklund and J. Michael Haynie (2009), ‘Moving Forward: Balancing the Financial and Emotional Costs of Business Failure’
G Culture
34. Seung-Hyun Lee, Mike W. Peng and Jay B. Barney (2007), ‘Bankruptcy Law and Entrepreneurship Development: A Real Options Perspective’
35. Melissa S. Cardon, Christopher E. Stevens and D. Ryland Potter (2011), ‘Misfortunes or Mistakes? Cultural Sensemaking of Entrepreneurial Failure’
H Non-Failure Exit
36. Karl Wennberg, Johan Wiklund, Dawn R. DeTienne and Melissa S. Cardon (2010), ‘Reconceptualizing Entreprenuerial Exit: Divergent Exit Routes and their Drivers’
Acknowledgements
Introduction Dean A. Shepherd
PART I ANTECEDENTS OF ENTREPRENEURIAL FAILURE
A Initial Conditions
1. Mark Fichman and Daniel A. Levinthal (1991), ‘Honeymoons and the Liability of Adolescence: A New Perspective on Duration Dependence in Social and Organizational Relationships’
2. Anand Swaminathan (1996), ‘Environmental Conditions at Founding and Organizational Mortality: A Trial-by-Fire Model’
3. Steven W. Bradley, Howard Aldrich, Dean A. Shepherd and Johan Wiklund (2011), ‘Resources, Environmental Change, and Survival: Asymmetric Paths of Young Independent and Subsidiary Organizations’
B Managerial and Strategic
4. Stewart Thornhill and Raphael Amit (2003), ‘Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View’
5. Dean A. Shepherd, Evan J. Douglas and Mark Shanley (2000), ‘New Venture Survival: Ignorance, External Shocks, and Risk Reduction Strategies’
6. Mathew L.A. Hayward, Dean A. Shepherd and Dale Griffin (2006), ‘A Hubris Theory of Entrepreneurship’
7. Johan Wiklund and Dean A. Shepherd (2011), ‘Where to From Here?, EO-as-Experimentation, Failure, and Distribution of Outcomes’
C Financial Predictors
8. Erkki K. Laitinen (1992), ‘Prediction of Failure of a Newly Founded Firm’
9. Johan Wiklund, Ted Baker and Dean Shepherd (2010), ‘The Age-Effect of Financial Indicators as Buffers against the Liability of Newness’
D Evolutionary
10. Howard Aldrich and Ellen R. Auster (1986), ‘Even Dwarfs Started Small: Liabilities of Age and Size and Their Strategic Implications’
11. Josef Brüderl and Rudolf Schüssler (1990), ‘Organizational Mortality: The Liabilities of Newness and Adolescence’
12. Howard E. Aldrich and Martha Argelia Martinez (2001), ‘Many are Called, but Few are Chosen: An Evolutionary Perspective for the Study of Entrepreneurship’
PART II CONSEQUENCES OF ENTREPRENEURIAL FAILURE
A Learning from Failure (General)
13. Rita Gunther McGrath (1999), ‘Falling Forward: Real Options Reasoning and Entrepreneurial Failure’
14. Mark D. Cannon and Amy C. Edmondson (2005), ‘Failing to Learn and Learning to Fail (Intelligently): How Great Organizations Put Failure to Work to Innovate and Improve’
15. Deniz Ucbasaran, Paul Westhead and Mike Wright (2009), ‘The Extent and Nature of Opportunity Identification by Experienced Entrepreneurs’
B Motivation to Try Again
16. Deniz Ucbasaran, Paul Westhead, Mike Wright and Manuel Flores (2010), ‘The Nature of Entrepreneurial Experience, Business Failure and Comparative Optimism’
17. Ronald K. Mitchell, J. Robert Mitchell and J. Brock Smith (2008), ‘Inside Opportunity Formation: Enterprise Failure, Cognition, and the Creation of Opportunities’
18. Ian J. Walsh and Jean M. Bartunek (2011), ‘Cheating the Fates: Organizational Foundings in the Wake of Demise’
C Consequences of Business Failure
19. Dean A. Shepherd (2003), ‘Learning from Business Failure: Propositions of Grief Recovery for the Self-Employed’
20. Dean A. Shepherd (2004), ‘Educating Entrepreneurship Students About Emotion and Learning From Failure’
21. Dean A. Shepherd (2009), ‘Grief Recovery from the Loss of a Family Business: A Multi- and Meso-Level Theory’
22. Jason Cope (2011), ‘Entrepreneurial Learning from Failure: An Interpretative Phenomenological Analysis’
D Consequences of Project Failure
23. Dean A. Shepherd and Melissa S. Cardon (2009), ‘Negative Emotional Reactions to Project Failure and the Self-Compassion to Learn from the Experience’
24. Dean A. Shepherd, Jeffrey G. Covin and Donald F. Kuratko (2009), ‘Project Failure from Corporate Entrepreneurship: Managing the Grief Process’
25. Dean A. Shepherd, Holger Patzelt and Marcus Wolfe (2011), ‘Moving Forward from Project Failure: Negative Emotions, Affective Commitment, and Learning from the Experience’
26. Andrew C. Corbett, Heidi M. Neck and Dawn R. DeTienne (2007), ‘How Corporate Entrepreneurs Learn from Fledgling Innovation Initiatives: Cognition and the Development of a Termination Script’
E Blame and Stigma
27. Robert I. Sutton and Anita L. Callahan (1987), ‘The Stigma of Bankruptcy: Spoiled Organizational Image and Its Management’
28. Dean A. Shepherd and J. Michael Haynie (2011), ‘Venture Failure, Stigma, and Impression Management: A Self-Verification, Self-Determination View’
29. Andrew L. Zacharakis, G. Dale Meyer and Julio DeCastro (1999), ‘Differing Perceptions of New Venture Failure: A Matched Exploratory Study of Venture Capitalists and Entrepreneurs’
30. Jason Cope, Frank Cave and Sue Eccles (2004), ‘Attitudes of Venture Capital Investors towards Entrepreneurs with Previous Business Failure’
F Delaying Failure
31. Javier Gimeno, Timothy B. Folta, Arnold C. Cooper and Carolyn Y. Woo (1997), ‘Survival of the Fittest? Entrepreneurial Human Capital and the Persistence of Underperforming Firms’
32. Dawn R. DeTienne, Dean A. Shepherd and Julio O. De Castro (2008), ‘The Fallacy of “Only the Strong Survive”: The Effects of Extrinsic Motivation on the Persistence Decisions for Under-Performing Firms’
33. Dean A. Shepherd, Johan Wiklund and J. Michael Haynie (2009), ‘Moving Forward: Balancing the Financial and Emotional Costs of Business Failure’
G Culture
34. Seung-Hyun Lee, Mike W. Peng and Jay B. Barney (2007), ‘Bankruptcy Law and Entrepreneurship Development: A Real Options Perspective’
35. Melissa S. Cardon, Christopher E. Stevens and D. Ryland Potter (2011), ‘Misfortunes or Mistakes? Cultural Sensemaking of Entrepreneurial Failure’
H Non-Failure Exit
36. Karl Wennberg, Johan Wiklund, Dawn R. DeTienne and Melissa S. Cardon (2010), ‘Reconceptualizing Entreprenuerial Exit: Divergent Exit Routes and their Drivers’
