The process of new venture creation is of central importance to entrepreneurship. The effects of initial organizing have a direct effect on survival, yet empirical examination of the dimensions of emerging organizations is limited. Using longitudinal data on 203 nascent entrepreneurs from Norway over the course of four years (1996–1999), this paper empirically tests four properties of emerging organizations—intentionality, resources, boundary, and exchange—and their effect on the likelihood of continuing the organizing effort (Katz and Gartner, Acad Manage Rev 13(3):429–441, 1988). Consistent with previous research, our results suggest that organizations which engage in a greater number of organizing activities are more likely to continue the organizing effort. In addition, intentionality, boundary, and exchange are positively associated with organizational emergence, whereas resources are a necessary, but not sufficient, condition for organizations to continue organizing. The concentration of organizing activities is also positively associated with the likelihood of continuing the organizing effort.
Small Business Economics – Springer Journals
Published: Aug 5, 2011
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