Abstract

There is a sizable literature focused on the role of embeddedness in entrepreneurship (e.g. Uzzi, 1997, Jack & Anderson, 2002; Kalantaridis & Bika, 2006). The literature has primarily focused on why embeddedness, in the form of social networks, is important for explaining who starts a business (e.g. Aldrich & Zimmer, 1986), where (e.g. Romanelli & Bird Schoonhoven, 2001) and the effects of networks on venture performance (e.g. Stearns, 1996). Despite the importance of entrepreneurial exit little is known about the exit process and outcome (DeTienne and Cardon 2007). We consider that embeddedness affects intentional entrepreneurial exit outcomes, where exit is defined as the founder exiting the firm but the firm staying in the market (DeTienne, 2010). For purposes of this research, individual embeddedness is the nature, depth, and extent of an entrepreneur’s ties to the firm (a la Jack & Anderson, 2002) whereas firm embeddedness is the interaction between the firm and the local milieu (Audretsch, 2003).

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