Managerial determinants of decision speed in new ventures
Article first published online: 4 MAR 2005
Copyright © 2005 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 26, Issue 4, pages 355–366, April 2005
How to Cite
Forbes, D. P. (2005), Managerial determinants of decision speed in new ventures. Strat. Mgmt. J., 26: 355–366. doi: 10.1002/smj.451
- Issue published online: 4 MAR 2005
- Article first published online: 4 MAR 2005
- Manuscript Revised: 20 SEP 2004
- Manuscript Received: 2 JAN 2002
- decision making;
- new ventures;
This study helps to explain why some new ventures make strategic decisions more quickly than others. Drawing on life course theory and human capital theory, I develop a model of how entrepreneurs' individual characteristics affect new venture decision speed. I test the model using survey data from 98 Internet startups and their founder/managers. Results show that firms made faster decisions when they were managed by older entrepreneurs and by those with prior entrepreneurial experience. In addition, exploratory analyses indicating that fast decision-making firms were more likely to close may indicate that prevailing theory in this area is contextually limited. Copyright © 2005 John Wiley & Sons, Ltd.