Abstract
Fast actions tend to benefit new ventures due to learning by doing effects. Beyond a limit, however, the detriments caused by acceleration trap effects dominate over the beneficial effects. Using longitudinal data on nascent entrepreneurs, this paper examines the relationship between startup rate and new venturesi¯ initial performance and confirms an inverted-U relationship. Moreover, the effect of fast action tends to vary with context. The uncertain environment brings up the urgency of fast action, whereas the innovative opportunity reduces the urgency. As a result, the curvilinear relationship became more pronounced when ventures competed in highly uncertain environment, but it becomes less pronounced when ventures were created with highly innovative entrepreneurial opportunities. This study contributes to the entrepreneurship and strategy research, by enriching the understanding of the learning process, particularly learning-by-doing, in new venture creation.
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