Problems of small venture startup, survival, and growth: A transaction set approach.

摘要

This dissertation introduces the concept of the transaction set which is the set of all relationships of the principals of a venture and argues that studying the evolutionary patterns of the set is useful in understanding the problems of survival and growth of new, small ventures. The dissertation raises two questions: (1) What are the evolutionary patterns in the transaction set of a new small venture that has stagnated? and (2) What are the forces that direct the evolution of transaction set over time?; Using Simon's (1962) theory of the architecture of complexity to examine the first question, the thesis offers two predictions about the evolutionary patterns of the transaction sets of stagnant ventures. The first prediction holds that venture principals will have difficulty in sustaining relationships with individual transaction partners. The second prediction holds that the venture principals will have difficulty in sustaining progressive growth in the size of the set over time. The second question is examined within a framework involving environmental selection and managerial choice arguments. A third prediction is offered about the relative influence of environment and managerial choice on the growth of the transaction set.; The first two predictions are empirically examined in the context of five business ventures. The third prediction is empirically examined through an in-dept longitudinal case analysis of one of the five ventures.; The first prediction is tested through hazard rate analysis of relationships, the second prediction is tested through graphical analysis of set size growth, and the third prediction is tested using qualitative discussion and Chi-Square tests of categorical data. Predictions one and two were confirmed in the context of the five ventures studied. However, principals had difficulty in sustaining relationships or achieving progressive growth in size in some stakeholder constituencies, but not in others. Both environmental selection pressures and managerial choices are found to influence set evolution, but each force is found to dominate at different points in the history of the venture.; Finally, theoretical and practical implications of the research are discussed and future research directions are indicated.