Date of this Version
Systematic differences in the determinants of firm failure between firms that fail early in their life and those that fail after having successfully negotiated the early liabilities of newness and adolescence are identified. Analysis of data from 339 Canadian corporate bankruptcies suggests that failure among younger firms may be attributable to deficiencies in managerial knowledge and financial management abilities. Failure among older firms, on the other hand, may be attributable to an inability to adapt to environmental change.
Originally published in Organization Science © 2003 INFORMS
This is a pre-publication version. The final version is available at http://dx.doi.org/10.1287/orsc.14.5.497.16761
liability of newness, resource-based view, bankruptcy
Thornhill, S., & Amit, R. (2003). Learning about Failure: Bankruptcy, Firm Age, and the Resource-Based View. Organization Science, 14 (5), 497-509. http://dx.doi.org/10.1287/orsc.14.5.497.16761
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Date Posted: 25 October 2018
This document has been peer reviewed.