Using verbal protocol and conjoint analyses, this study examines how stakeholders assess an organization in deciding whether to provide their support to it. The authors find that stakeholders’ support depends on their perceptions of an organization’s age and other dimensions of newness related to addressing management challenges of adaptation—the entrepreneurial problem, the engineering problem, and the administrative problem. Stakeholder support is more likely for those organizations that are old, cognitively legitimate, affectively congruent, reliable, accountable, and strategically flexible. The authors conclude with theoretical implications for scholars and practical implications for resource acquisition in various contexts of entrepreneurship.
Adler, P. S., Goldoftas, B., & Levine, D. I.1999. Flexibility versus efficiency? A case study of model changeovers in the Toyota production system. Organization Science, 10: 43-68.
2.
Agle, B. R., Mitchell, R. K., & Sonnenfeld, J. A.1999. Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values. Academy of Management Journal, 42: 507-525.
3.
Aldrich, H. E., & Auster, E. R.1986. Even dwarfs started small: Liabilities of age and size and their strategic implications. In B. M. Staw & L. L. Cummings (Eds.), Research in organizational behavior, Vol. 8: 165-198. Greenwich, CT: JAI.
4.
Aldrich, H. E., & Fiol, C. M.1994. Fools rush in? The institutional context of industry creation. Academy of Management Review, 19: 645-670.
5.
Amburgey, T. L., Kelly, D., & Barnett, W. P.1993. Resetting the clock: The dynamics of organizational change and failure. Administrative Science Quarterly, 38: 51-73.
6.
Autio, E., Sapienza, H. J., & Almeida, J. G.2000. Effects of age at entry, knowledge intensity, and imitability on international growth. Academy of Management Journal, 43: 909-924.
7.
Baron, J. N., Hannan, M. T., & Burton, M. D.1999. Building the iron cage: Determinants of managerial intensity in the early years of organizations. American Sociological Review, 64: 527-547.
8.
Barron, D. N., West, E., & Hannan, M. T.1994. A time to grow and a time to die: Growth and mortality of credit unions in New York City, 1914-1990. American Journal of Sociology, 100: 381-421.
9.
Berman, S. L., Wicks, A. C., Kotha, S., & Jones, T. M.1999. Does stakeholder orientation matter? The relationship between stakeholder management models and firm financial performance. Academy of Management Journal, 42: 488-506.
Brehmer, A., & Brehmer, B.1988. What have we learned about human judgment from thirty years of policy capturing? In B. Brehmer & C. R. B. Joyce (Eds.), Human judgment, the SJT view:75-114. Amsterdam: Elsevier.
12.
Bush, P.1987. The theory of institutional change. Journal of Economic Issues, 21: 1075-1116.
13.
Cable, D. M., & Graham, M. E.2000. The determinants of job seekers’ reputation perceptions. Journal of Organizational Behavior, 21: 929-947.
14.
Cable, D. M., & Judge, T. A.1996. Person-organization fit, job choice decision and organizational entry. Organizational Behavior and Human Decision Processes, 67: 294-311.
15.
Carroll, G. R.1983. A stochastic model of organizational mortality: Review and reanalysis. Social Science Research, 12: 303-329.
16.
Choi, T. Y., & Behling, O. C.1997. Top managers and TQM success: One more look after all these years. Academy of Management Executive, 11(1): 37-47.
17.
Choi, Y. R., & Shepherd, D. A.2004. Entrepreneurs’ decisions to exploit opportunities. Journal of Management, 30: 377-395.
18.
Christensen, C. M., & Overdorf, M.2000. Meeting the challenge of disruptive innovation. Harvard Business Review, 78(2): 66-76.
19.
Clarkson, M. 1994. A risk based model of stakeholder theory. Proceedings of the Second Toronto Conference on Stakeholder Theory. Toronto, Canada: Centre for Corporate Social Performance& Ethics, University of Toronto.
20.
Clarkson, M.1995. A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20: 92-117.
21.
Cyert, R. M., & March, J. G.1963. A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice Hall.
22.
Delacroix, J., Swaminathan, A., & Solt, M. E.1989. Density dependence versus population dynamics: An ecological study of failings in the California wine industry. American Sociological Review, 54: 245-262.
23.
De Mente, B.1994. Korean etiquette and ethics in business. Lincolnwood, IL: NTC Business Books.
24.
Dewey, J.1939. Theory of valuation. In O. Neurath (Ed.), International encyclopedia for unified science, Vol. 2, No. 4: 1-67. Chicago: University of Chicago Press.
25.
Drucker, P. F.1985. Innovation and entrepreneurship. New York: Harper & Row.
26.
Ericsson, K. A., & Simon, H. A.1993. Protocol analysis: Verbal reports as data (Rev. ed.). Cambridge, MA: MIT Press.
27.
Feldman, M. S., & Pentland, B. T.2003. Reconceptualizing organizational routines as a source of flexibility and change. Administrative Science Quarterly, 48: 94-118.
28.
Fichman, M., & Levinthal, D. A.1991. Honeymoons and the liability of adolescence: A new perspective on duration dependence in social and organizational relationships. Academy of Management Review, 16: 442-468.
29.
Freeman, J., Carroll, G. R., & Hannan, M. T.1983. The liability of newness: Age dependence in organizational death rates. American Sociological Review, 48: 692-710.
30.
Frooman, J.1999. Stakeholder influence strategies. Academy of Management Review, 24: 191-206.
31.
Galbraith, J. K.1958. The affluent society. Boston: Houghton Mifflin.
32.
Garvin, D. A.1987. Competing on the eight dimensions of quality. Harvard Business Review, 65(6): 101-109.
33.
Gellert, E.1955. Systematic observation: A method in child study. Harvard Educational Review, 25: 179-195.
34.
Green, R., & Srinivasan, V.1990. Conjoint analysis in marketing: New developments and directions. Journal of Marketing, 54(4): 3-19.
35.
Hahn, G., & Shapiro, S.1966. A catalogue and computer program for the design and analysis of orthogonal symmetric and asymmetric fractional factorial designs. Report No. 66-C-165. Schenectady, NY: General Electric.
36.
Hannan, M. T., & Carroll, G. R.1995. An introduction to organizational ecology. In G. R. Carroll & M. T. Hannan (Eds.), Organizations in industry:17-31. New York: Oxford University Press.
37.
Hannan, M. T., & Freeman, J.1984. Structural inertia and organizational change. American Sociological Review, 49: 149-164.
38.
Henderson, A. D.1999. Firm strategy and age dependence: A contingent view of the liabilities of newness, adolescence, and obsolescence. Administrative Science Quarterly, 44: 281-314.
39.
Hill, H.1994. ASEAN economic development: An analytical survey and state of the field. Journal of Asian Studies, 53: 832-866.
40.
Hitt, M. A., Keats, B. W., & DeMarie, S. M.1998. Navigating in the new competitive landscape: Building strategic flexibility and competitive advantage in the 21st century. Academy of Management Executive, 12(4): 22-42.
41.
Hofstede, G.1980. Culture’s consequences: International differences in work-related values. Beverly Hills, CA: Sage.
42.
Howell, J. M., & Higgins, C. A.1990. Champions of technological innovation. Administrative Science Quarterly, 35:317-341.
43.
Jawahar, I. M., & McLaughlin, G. L.2001. Toward a descriptive stakeholder theory: An organizational life cycle approach. Academy of Management Review, 26: 397-414.
44.
Kahneman, D., & Tversky, A.1979. Prospect theory: An analysis of decision underrisk. Econometrica, 47: 263-291.
45.
Kazanjian, R. K.1988. The relation of dominant problems to stage of growth in technology-based new ventures. Academy of Management Journal, 31: 257-279.
46.
Korea Information Strategy Development Institute. 2003. IT industry outlook of Korea 2003. Kyunggi, Korea: Author.
47.
Louviere, J. J.1988. Analyzing decision making: Metric conjoint analysis. Newbury Park, CA: Sage.
48.
McDougall, P. P., Covin, J. G., Robinson, R. B., & Herron, L.1994. The effects of industry growth and strategic breadth on new venture performance and strategy content. Strategic Management Journal, 15: 537-554.
49.
Mellahi, K., & Johnson, M.2000. Does it pay to be a first mover in e.commerce? The case of Amazon.com. Management Decision, 38: 445-452.
50.
Meyer, M. H., & Utterback, J. M.1995. Product development cycle time and commercial success. IEEE Transactions on Engineering Management, 42: 297-304.
51.
Miles, R. E., & Snow, C. C.1978. Organizational strategy, structure, and process. New York: McGraw-Hill.
52.
Mintzberg, H.1990. The design school: Reconsidering the basic premises of strategic management. Strategic Management Journal, 11: 171-195.
53.
Mitchell, R. K., Agle, B. R., & Wood, D. J.1997. Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22: 853-886.
54.
Mitchell, W.1994. The dynamics of evolving markets: The effects of business sales and age on dissolutions and divestitures. Administrative Science Quarterly, 39: 575-602.
55.
Nelson, R. R., & Winter, S. E.1982. An evolutionary theory of economic change. Cambridge, MA: Harvard University Press.
56.
North, D.1990. Institutions, institutional change, and economic performance. Cambridge, UK: Cambridge University Press.
57.
Oliver, R. L.1999. Whence consumer loyalty. Journal of Marketing, 63 (special issue): 33-44.
58.
Oviatt, B. M., & McDougall, P. P.1994. Toward a theory of international new ventures. Journal of International Business Studies, 25: 45-64.
59.
Packard, V.1960. The waste makers. New York: McKay.
60.
Parkhe, A.1991. Interfirm diversity, organizational learning, longevity in global alliances. Journal of International Business Studies, 22: 579-601.
61.
Pfeffer, J., & Salancik, G. R.1978. The external control of organizations: A resource dependence perspective. New York: Harper & Row.
62.
Preston, L. E., & Donaldson, T.1999. Stakeholder management and organizational wealth. Academy of Management Review, 24: 619-620.
63.
Priem, R. L., & Harrison, D. A.1994. Exploring strategic judgment: Methods for testing the assumptions of prescriptive contingency theories. Strategic Management Journal, 15:311-324.
64.
Qualls, W., Olahavsky, R., & Michaels, R.1981. Shortening of the PLC—An empirical test. Journal of Marketing, 45(Fall): 76-80.
65.
Rah, J., Jung, K., & Lee, J.1994. Validation of the venture evaluation model in Korea. Journal of Business Venturing, 9: 273-287.
66.
Redmond, W. H.2003. Innovation, diffusion, and institutional change. Journal of Economic Issues, 37: 665-679.
67.
Rogers, E. M.1983. Diffusion of innovations. New York: Free Press.
68.
Rynes, S. L.1991. Recruitment, job choice, and post-hire consequences: A call for new research directions. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of industrial and organizational psychology, Vol. 2: 399-444. Palo Alto, CA: Consulting Psychologists.
69.
Schön, D. A.1963. Champions for radical new inventions. Harvard Business Review, 41(March/April): 77-86.
70.
Schor, J.1998. The overspent American. New York: Basic Books.
71.
Shepherd, D. A.1999. Venture capitalists’ assessment of new independent organization survival. Management Science, 45: 621-632.
72.
Shepherd, D. A., Douglas, E. J., & Shanley, M. T.2000. New venture survival: Ignorance, external shocks and risk reduction strategies. Journal of Business Venturing, 15: 393-410.
73.
Singh, J. V., Tucker, D. J., & House, R. J.1986. Organizational legitimacy and the liability of newness. Administrative Science Quarterly, 31: 171-193.
74.
Smith, C. O. 1971. The structure of intellect processes analyses system: A technique for the investigation and qualification of problem solving processes. Unpublished doctoral dissertation, University of Houston, TX.
75.
Sorensen, J. B., & Stuart, T. E.2000. Aging, obsolescence, and organizational innovation. Administrative Science Quarterly, 45: 81-112.
76.
Stevenson, H. H., & Jarillo, J. C.1990. A paradigm of entrepreneurship: Entrepreneurial management. Strategic Management Journal, 11: 17-27.
77.
Stinchcombe, A. L.1965. Social structure and organizations. In J. G. March (Ed.), Handbook of organizations:142-193. Chicago: Rand McNally.
78.
Stuart, T. E., Hoang, H., & Hybels, R. C.1999. Interorganizational endorsements and the performance of entrepreneurial ventures. Administrative Science Quarterly, 44: 315-349.
79.
Suchman, M.1995. Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20: 571-610.
80.
Szulanski, G.1996. Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17: 27-43.
81.
Thornhill, S., & Amit, R.2003. Learning about failure: Bankruptcy, firm age, and the resource-based view. Organization Science, 14: 497-509.
82.
Venkataraman, S.1997. The distinctive domain of entrepreneurship research. In J. Katz & R. Brockhaus (Eds.), Advances in entrepreneurship, firm emergence, and growth, Vol. 3: 119-138. Greenwich, CT: JAI.
83.
Veryzer, R. W., Jr.1998. Key factors affecting customer evaluation of discontinuous new products. Journal of Product Innovation Management, 15: 136-150.
84.
Waller, W.1982. The evolution of the Veblenian dichotomy: Veblen, Hamilton, Ayres, and Foster. Journal of Economic Issues, 16: 757-771.
