Legitimating first: organizing activities and the survival of new ventures

Legitimating first: organizing activities and the survival of new ventures The process by which firm founders create new organizations is of considerable interest to evolutionary theorists and entrepreneurship researchers. This article tracks the life histories of 223 Swedish new ventures started between January and September 1998 by a random sample of firm founders. We explore the effect of legitimating activities on the hazard of disbanding and the transition to other firm organizing activities during their first 30 months of life. We find that undertaking activities to generate legitimacy reduces the hazard of venture disbanding and facilitates the transition to other organizing activities. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Venturing Elsevier

Legitimating first: organizing activities and the survival of new ventures

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Publisher
Elsevier
Copyright
Copyright © 2003 Elsevier Science Inc.
ISSN
0883-9026
DOI
10.1016/S0883-9026(03)00037-5
Publisher site
See Article on Publisher Site

Abstract

The process by which firm founders create new organizations is of considerable interest to evolutionary theorists and entrepreneurship researchers. This article tracks the life histories of 223 Swedish new ventures started between January and September 1998 by a random sample of firm founders. We explore the effect of legitimating activities on the hazard of disbanding and the transition to other firm organizing activities during their first 30 months of life. We find that undertaking activities to generate legitimacy reduces the hazard of venture disbanding and facilitates the transition to other organizing activities.

Journal

Journal of Business VenturingElsevier

Published: May 1, 2004

References

  • Organizations and Environments
    Aldrich, H.
  • The road taken: origins and evolution of employment systems in emerging companies
    Baron, J.; Burton, M.; Hannan, M.
  • Exploring start-up event sequences
    Carter, N.; Gartner, W.; Reynolds, P.
  • The social construction of reputation: certification contests, legitimation and the survival of organizations in the American automobile industry: 1895–1912
    Rao, H.

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