Abstract
New ventures face many liabilities of newness. While much has been written about these liabilities, surprisingly the literature does not distinguish between new ventures founded by a single founder and new ventures founded by co-founders. The literature that does exist suggests that solo-founded ventures should experience greater liabilities of newness than co-founded ventures and so exhibit lower performance. However, empirical research is silent on the conditions under which solo-founded ventures might perform as well or better than co-founded ventures. We address this gap by exploring the question of “under what conditions do solo-founded ventures perform as well as or better than co-founded ventures?” Using data on IPO firms from 1997-2010, we find that solo founders and co-founders are subject to unique and competing liabilities of newness. More broadly, our findings unpack liabilities of newness and add fresh contributions to the fields of entrepreneurship, strategy and organization theory.
Published Version
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