New ventures must compete for scarce resources and often face a liability of newness (Stinchcombe, 1965). Whereas much of the research on the liability of newness contrasts young versus old organizations, we examine whether similar mechanisms apply to organizations that do not yet exist. We focus on these yet-to-be organizations’ ability to garner support from key resource providers. In addition, whereas prior research has examined the likelihood of garnering stakeholder support primarily as a function of how stakeholders perceive opportunities (e.g., Zacharakis & Shepherd, 2001; Choi & Shepherd, 2005) we focus on the actions that can be taken by would-be entrepreneurs during the resource seeking process itself to mitigate their underlying disadvantage (Wiklund et al., 2010).
O'Toole, Jay and Ciuchta, Michael P.
"MITIGATING THE LIABILITY OF NEWNESS: ENTREPRENEURS IN AN ONLINE PEER-TO-PEER LENDING MARKET (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 31
, Article 8.
Available at: http://digitalknowledge.babson.edu/fer/vol31/iss3/8