Abstract Based on life cycle theory, there exist great difference in organizational structures, strategies, and so on among different stages; therefore, we aim to further explore the dynamical impact of EL on new venture performance in different stages. This paper proposes the following hypotheses, that is, EL has a positive relationship with new venture performance in start-up stage, an inverted U-shaped relationship with new venture performance in early growth stage, and the relationship between these two variables exist differently in distinct industries (IT and traditional manufacturing industry). We test our hypotheses based on a sample of 305 new firms in China, revealing the dynamic impact law of the EL of China’s new ventures in China’s economic transition.
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