What can we learn from history?
Subtitle: the entrepreneurial boom and bust in the investment management industry (1927-1931)
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 -- 05-019; Working paper (Harvard Business School. Division of Research) -- 05-019
Publisher: Division of Research, Harvard Business School
Published: 2004
Place of publication: Boston
Language: eng
Number of pages: 61
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 85 investment management firms from 1927 through December 1931 suggests that initial endowments shape a firm strategy during the expansion of the EBB, and both predict firm survival at the end of the EBB period. We find that firms followed three archetypes of strategy Ư Conservative Growers, Focused Investors, and Expansionist. They started from different resources bases. Conservative Growers were differentially able to withstand the contraction period.
Notes: "October 2004"--Added t.p.

Includes bibliographical references.