Managerial determinants of decision speed in new ventures

Abstract

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.