Resources, capabilities, liability of newness and corporate failure: An empirical study

Rongwei, Ren, Zhu, Yunxia and Zhang, John (2010). Resources, capabilities, liability of newness and corporate failure: An empirical study. In: Jian Gao, Jizhen Li, Yuan Cheng and Xiaolan Fu, Proceedings of Academy of Innovation and Entrepreneurship 2010. 3rd Annnual Conference for the Academy of Innovation and Entrepreneurship (AIE2010), Beijing, China, (306-317). 9-11 July 2010.

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Name Description MIMEType Size Downloads
Author Rongwei, Ren
Zhu, Yunxia
Zhang, John
Title of paper Resources, capabilities, liability of newness and corporate failure: An empirical study
Conference name 3rd Annnual Conference for the Academy of Innovation and Entrepreneurship (AIE2010)
Conference location Beijing, China
Conference dates 9-11 July 2010
Proceedings title Proceedings of Academy of Innovation and Entrepreneurship 2010
Journal name Proceedings of Academy of Innovation and Entrepreneurship 2010
Place of Publication Beijing, China
Publisher China WaterPower Press
Publication Year 2010
Sub-type Fully published paper
Open Access Status
ISBN 9787508475899
Editor Jian Gao
Jizhen Li
Yuan Cheng
Xiaolan Fu
Start page 306
End page 317
Total pages 12
Language eng
Abstract/Summary This paper, through comparing the determinants between corporate failures and survivors, identifies factors in relation to liability of newness that cause corporate failures. Liability of newness has attracted research attention as a significant attribute for organizational failure, in particular, in the early studies of organizational ecology. However, scarce research has been done on corporate failure and liability of newness from a comparative perspective, i.e., through comparing corporate failures and survivors. This paper develops a model and a series of hypotheses based on the characteristics of liability of newness, resource-based-view and capability theories. In light of this model, it compares corporate failures and survivors, and more importantly, illustrates the correlation between internal resources, capabilities and corporate failure. Our analysis of data from 811 random samples taken from the Database of Industrial Enterprise of China suggests that the deficiency of internal resource and capability are likely to induce failure. In order to accelerate firm survival rate, we make some recommendations for improving new venture's resources capabilities and liability of newness.
Keyword New ventures
Liability of newness
Resource capability
Failure
Q-Index Code E1
Q-Index Status Provisional Code
Institutional Status UQ
Additional Notes Published under Session 7 New Venture Creation

Document type: Conference Paper
Collection: UQ Business School Publications
 
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Created: Fri, 17 Dec 2010, 12:46:22 EST by Karen Morgan on behalf of UQ Business School