Founding time and the growth of firms

Abstract

This research recognizes the importance of the founding conditions of a firm. A new construct, Founding Time (FT) has been conceptualized, measured, and validated to represent one of the founding conditions of a firm. FT is then used to understand the phenomena of growth of firms.

The impact of FT on the growth of a firm has been examined. This examination reveals that there is a certain zone of FT, which seems to result in high firm growth rates. This research also establishes that there is an optimum for the FT of a firm.

A multimethod approach has been used which includes econometric modeling and case studies. This approach has allowed us to triangulate the results of FT in this research.

Citation

Chandrashekhar, G.R. and Srinivasan, R. (2005), "Founding time and the growth of firms", New England Journal of Entrepreneurship, Vol. 8 No. 2, pp. 21-30. https://doi.org/10.1108/NEJE-08-02-2005-B003