On a Short Leash? Young Organizations, Strategic Change, and Venture Capital

40 Pages Posted: 2 Aug 2009 Last revised: 7 Aug 2013

Matt Marx

Massachusetts Institute of Technology (MIT)

Date Written: September 14, 2009

Abstract

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.

Suggested Citation

Marx, Matt, On a Short Leash? Young Organizations, Strategic Change, and Venture Capital (September 14, 2009). Available at SSRN: https://ssrn.com/abstract=1441611 or http://dx.doi.org/10.2139/ssrn.1441611

Matt Marx (Contact Author)

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

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