Sustaining superior performance through a boom and bust period
Subtitle: inter-firm differences in the e-consulting industry
By: M. Julia Prats and Ashish Nanda
Contributors: Nanda, Ashish; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 05-018; Working paper (Harvard Business School. Division of Research) -- 05-018
Publisher: Division of Research, Harvard Business School
Published: 2004
Place of publication: Boston
Language: eng
Number of pages: 56
Subjects: Electronic commerce; Finance; Management; Consulting firms; Financial services industry; Business cycles
Description: This paper develops and empirically tests a theoretical framework that identifies new venture strategies that are robust to a severe change in environmental conditions. Specifically, it develops a typology of strategic options among new ventures in the context of an emerging industry that experiences an Entrepreneurial Boom and Bust (EBB) Period. An analysis of the performance drivers of 104 e-consulting firms from January 1998 through December 2001 suggests that initial endowments shape strategy during the expansion phase of the EBB, and both predict firm survival at the end of the EBB period. We find that firms followed four strategy archetypes Ư Conservative Growers, Focused Consultants, Expansionists and Aggressive Acquirers. Further, differences are systematically associated with differences in performance. Whereas Conservative Growers, Focused Consultants were most successful in weathering the contraction phase, Expansionists and Aggressive Acquirers were most susceptible to failure.
Notes: "April 2004"--Added t.p.

Includes bibliographical references.