Abstract
This study investigates how, under the pressure of working capital constraints, a problem-solving approach influences decision-makers’ financing decisions, and also how it affects consequent venture performance. Using a mixed-method research design including a survey study, a text-based analysis based on secondary data, and a behavioral laboratory experiment, we show that decision-makers with limited working capital (i.e., financial constraints) who use an abstract problem-solving approach can achieve better new venture performance compared with those using a concrete problem-solving approach. Implications for new venture managers and policymakers are discussed.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
