Managerial determinants of decision speed in new ventures

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113 Scopus citations

Abstract

This study helps to explain why some new ventures make strategic decisions more quickly than others. Drawing on life course theory and human capital theory, I develop a model of how entrepreneurs' individual characteristics affect new venture decision speed. I test the model using survey data from 98 Internet startups and their founder/managers. Results show that firms made faster decisions when they were managed by older entrepreneurs and by those with prior entrepreneurial experience. In addition, exploratory analyses indicating that fast decision-making firms were more likely to close may indicate that prevailing theory in this area is contextually limited.

Original languageEnglish (US)
Pages (from-to)355-366
Number of pages12
JournalStrategic Management Journal
Volume26
Issue number4
DOIs
StatePublished - Apr 1 2005

Keywords

  • Decision making
  • Entrepreneurship
  • New ventures
  • Speed

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