The role of skill versus luck in new venture survival

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Journal Title
Journal ISSN
Volume Title
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
Date
2021-10
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Language
en
Pages
8
549-556
Series
INTERNATIONAL JOURNAL OF MANAGEMENT REVIEWS, Volume 23, issue 4
Abstract
In our paper ‘New venture survival: A review and extension’ in the Interna- tional Journal of Management Reviews, we synthesized more than five decades of entrepreneurship, management and sociology research on the reasons why some new ventures survive and others fail. Based on our review and analysis, we provided an up-to-date systematization of the literature and a framework that includes important extensions to Stinchcombe’s seminal work. Coad and Storey criticized our framework for basing venture outcome on skill—something that can be influenced by entrepreneurs and other stakeholders. In this paper, we argue that: (i) the distinction between survival and performance matters when thinking about the antecedents of these constructs; (ii) gambling is an incom- patible analogy for entrepreneurship; and (iii) psychological processes cannot be ignored when studying new ventures’ survival. We also correct some points made by Coad and Storey about our findings. We encourage future studies on new venture survival to be cautious of adopting a view of venturing as a ‘game of chance’—which is, in our perspective, a potentially discouraging view for people pursuing entrepreneurship.
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Citation
Soto-Simeone , A , Siren , C & Antretter , T 2021 , ' The role of skill versus luck in new venture survival ' , INTERNATIONAL JOURNAL OF MANAGEMENT REVIEWS , vol. 23 , no. 4 , pp. 549-556 . https://doi.org/10.1111/ijmr.12262