Understanding the failure process of ventures: a perspective of the behavioral strategy
Abstract
Purpose
This study aims to endeavor to shed light on the underlying causal mechanisms behind the failure of startups by examining the failure process in such organizations. To achieve this goal, the study conducted a comprehensive review of the literature on the definition of failure and its various dimensions, resulting in the compilation of a comprehensive list of causes of startup failure. Subsequently, the failure process was analyzed using a behavioral strategy approach that encompasses rationality, plasticity and shaping, as well as the growth approach of startups based on dialectic, teleology and evolution theories.
Design/methodology/approach
The proposed research methodology was a case study using process tracing, with the sample being a failed platform in the ride-hailing technology sector. The causal mechanism was further explicated through the combined application of the behavioral strategy approach and interpretive structural modeling analysis.
Findings
The findings of the study suggest that the failure of startups is a result of interlinked causes and effects, and growth in these organizations is driven by dialectic, teleology and evolution theories.
Originality/value
The outcomes of the research can assist startups in formulating an effective strategy to deliver the right value proposition to the market, thereby reducing the chances of failure.
Keywords
Acknowledgements
The authors would like to express their gratitude to the editors and reviewers for their insightful comments to enhance the clarity of the previous version of the article.
Funding: This work was completed at the author’s own cost. Funding from a third party was not used to carry out this research work.
Data availability statement: All data used to justify the proposed model are given in the manuscript.
Conflicts of interest: The authors do hereby declare that they do not have any conflicts of interest with other works.
Compliance with ethical standards: The study is not funded by any agency. The authors do hereby declare that there is no conflict of interests of other works regarding the publication of this paper. This article does not contain any studies with human participants or animals performed by any of the authors.
Citation
Sajjadian, F., Amirshahi, M., Abdolvand, N., Hajipour, B. and Sana, S.S. (2024), "Understanding the failure process of ventures: a perspective of the behavioral strategy", Journal of Modelling in Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JM2-07-2023-0141
Publisher
:Emerald Publishing Limited
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