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http://bura.brunel.ac.uk/handle/2438/26133| Title: | Entrepreneurial Entropy: A Resource Exhaustion Theory of Firm Failure From Entrepreneurial Orientation |
| Authors: | Gali, N Hughes, M Morgan, R Wang, C |
| Keywords: | resource exhaustion theory;entrepreneurial orientation;firm failure;entropy;change in EO;organizational resource slack;liquidity;underperformance;survival bias;asset specificity;pacing |
| Issue Date: | 27-Feb-2023 |
| Publisher: | SAGE Publications |
| Citation: | Gali, N. et al. (2023) 'Entrepreneurial Entropy: A Resource Exhaustion Theory of Firm Failure From Entrepreneurial Orientation', Entrepreneurship: Theory and Practice, 48 (1), pp. 141 - 170. doi: 10.1177/10422587231151957. |
| Abstract: | Copyright © The Author(s) 2023. Entrepreneurial orientation (EO) can generate substantial gains and losses, exhausting firm resources and straining a firm’s ability to sustain its activities. We develop and test a resource exhaustion theory of firm failure, conceptualizing conditions under which EO increases the risk of firm failure by generating unsustainable amounts of entrepreneurial entropy. Using panel data on 804 large U.S. high-technology firms over 18 years, we find that EO increases the risk of firm failure, which is mediated by the lack of organizational resource slack. An abrupt change in EO increases the risk of firm failure, especially among underperforming firms |
| Description: | Supplementary Material: available online at: https://journals.sagepub.com/doi/10.1177/10422587231151957#supplementary-materials . |
| URI: | https://bura.brunel.ac.uk/handle/2438/26133 |
| DOI: | https://doi.org/10.1177/10422587231151957 |
| ISSN: | 1042-2587 |
| Other Identifiers: | ORCID iD: Nazha Gali https://orcid.org/0000-0002-0525-0629 ORCID iD: Mathew (Mat) Hughes https://orcid.org/0000-0001-6859-558X ORCID iD: Catherine L. Wang https://orcid.org/0000-0003-4816-8462 |
| Appears in Collections: | Brunel Business School Research Papers |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| FullText.pdf | Copyright © The Author(s) 2023. This is the author’s version of the work. It is posted here by permission of SAGE Publications for personal use, not for redistribution. The definitive version was published in Gali, N., Hughes, M. (Mat), Morgan, R. E., & Wang, C. L. (2023). Entrepreneurial Entropy: A Resource Exhaustion Theory of Firm Failure From Entrepreneurial Orientation. Entrepreneurship Theory and Practice, 48(1). pp. 141 - 170. DOI: 10.1177/10422587231151957 (See: https://sagepub.com/journals-permissions). | 1.1 MB | Adobe PDF | View/Open |
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