| This dissertation addresses gaps in our understanding of entrepreneurs' and stakeholders' decision making on important events such as the exploration and exploitation of a new opportunity in the entrepreneurial process. To do so, I adopt the notions of the liability of newness and the honeymoon period from population ecology, and adapt them to the individual/firm level of analysis. In Chapter 2, the liability of newness is dimensionalized and examined from a stakeholders' perspective using a verbal protocol analysis. Different stakeholders perceive the liability of newness (reliability, accountability, legitimacy, and commitment) differently and stakeholders' perception of the liability of newness appears to be negatively related to their decision on the involvement with the new venture. In Chapter 3, a dynamic analytical method is proposed to analyze how mortality risk of new ventures impacts the exploitation decision influencing the overall performance of the new venture. The notion of an uncertainty threshold is derived as the decision criterion for exploitation timing. Model parameters reflecting the characteristics of the entrepreneurial process affect the exploitation timing. In Chapter 4, entrepreneurs' risk perspective on the exploitation decision is examined using a conjoint analysis with 55 independent entrepreneurs. The results show that the dimensions of the liability of newness are negatively associated with the exploitation decision. The results provide implications on the determinants of entry timing, possible decision biases, the trade-off between mortality risk and potential profitability, and entrepreneurship education. This dissertation makes a number of contributions to the literature. First, new venture exploitation is depicted in a more parsimonious manner, from building on notions from the population ecology literature. Second, the role of mortality risk in new opportunity exploitation is better captured via an analytical framework, allowing an explicit consideration of changes in uncertainty over time. Third, the conjoint analysis is the very first attempt to empirically investigate the entrepreneurial exploitation phenomenon. Finally, the literature-driven dimensions of the liability of newness and its relevance examined through stakeholders' and entrepreneur's decision making studies may be expected to form the basis for interesting future research focused on the early stages of a new venture's life. |
