Underperforming firms refer to firms whose performance is below owners’ expectations for a long period of time (DeTienne et al., 2008). According to population ecology theory, underperforming firms will be eventually forced out of the market. Why, then, do owner-managers persist with underperforming ventures? In this research, we draw on identity theory and social identity theory, and seek to explain how individual, relational, and social identities influence owner-managers’ decisions about underperforming ventures. Furthermore, we examine how these three types of identities interact with the availability of alternative opportunities to influence the above decisions.
Zhu, Fei and Thornhill, Stewart
"THE ROLE OF IDENTITY IN ENTREPRENEURIAL PERSISTENCE (INTERACTIVE PAPER),"
Frontiers of Entrepreneurship Research: Vol. 31
, Article 22.
Available at: http://digitalknowledge.babson.edu/fer/vol31/iss6/22