Why do owner-managers delay business failure when it is financially costly to do so? In this
paper we acknowledge that delaying business failure can be financially costly to the owner …

Failure is a phenomenon that ventures face during all stages of the life cycle and requires
insight into its causes before it can be reversed. The scientific literature on failure is …

Under-performing firms persist even though existing theoretical perspectives indicate that
they should be selected out of the market. Building upon threshold theory [Gimeno, J., Folta …

Research summary: Combining the concept of resource relatedness with the economic
notion of sunk costs, we assess how the potential for resource redeployment affects market …

Although extant studies have increased our understanding of the decision of when to
terminate a project and its organizational implications, they do not explore the contextual …

In this article, we examine whether the option value of keeping an operation alive will deter
firms from exiting an industry. We find that uncertainty dissuades firms from exiting an …

Existing studies of exit delay typically focus on rational, behavioral, or organizational
explanations in isolation. We integrate these different theoretical explanations, develop …

This article examines market exit, barriers to exit, modes and strategies of exit, reasons for
exit, and the consequences of exit through a literature review of the academic literature and …

Research summary: Exit delay is an important problem for entrepreneurs and managers
alike, yet relatively little is known about its causes. We conduct a laboratory experiment in …

In this paper we suggest that some existing approaches can be fruitfully used to understand
business failure. In addition, however, there are theoretical lenses that have not been …