Frontiers of Entrepreneurship Research
1996 Edition


 

INITIAL FOUNDING CONDITIONS AND NEW FIRM PERFORMANCE:
A LONGITUDINAL STUDY INTEGRATING PREDICTIONS
FROM MULTIPLE PERSPECTIVES

Charles E. R. Bamford, University of Tennessee
Thomas J. Dean, University of Tennessee
Patricia P. McDougall, Georgia Institute of Technology


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Introduction
Theoretical Development
Methodology
Results
Discussion & Conclusions
References


ABSTRACT

Using three theoretical lenses, the performance effects of initial founding conditions are examined utilizing 140 independent banks over a six-year period subsequent to formation. Findings include strong empirical support for the impact of initial conditions/decisions on subsequent firm performance. Specific results suggest strong predictive validity of the strategic management and resource perspectives on initial founding conditions. However, the rapidly diminishing explanatory power of the external control perspective suggests that initial environmental conditions have little ability to predict longer term venture performance.

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1997 Babson College All Rights Reserved
Last Updated 1/15/97 by Geoff Goldman & Dennis Valencia

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