On a Short Leash? Young Organizations, Strategic Change, and Venture Capital
Massachusetts Institute of Technology (MIT)
September 14, 2009
Abstract: A vast literature chronicles the struggles of established firms to adapt, but few studies have examined whether young organizations are indeed more adaptive than their senior corporate siblings. Firms attempting to commercialize inventions during a period of technological change may need to adapt their strategies, but established organizations often remain tied to existing paths. Nascent firms may be better poised to explore various commercialization avenues yet are resource-constrained. While external investment may promise to solve the resource problem, might such investors reduce a firm’s adaptability? I investigate these questions using a dataset chronicling strategies and financing of all firms in the worldwide automatic speech recognition industry from 1952-2006.
Number of Pages in PDF File: 40working papers series
Date posted: August 2, 2009 ; Last revised: August 7, 2013
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