Entrants are often viewed as suffering from a “liability of newness” – at founding they rarely possess the knowledge and capabilities necessary to compete and survive. They can overcome such liabilities by learning vicariously from the knowledge of incumbent firms. But how do entrants...

Empirical evidence suggests that entrepreneurs make mistakes: too many enter markets and, once there, persist too long. While scholars have largely settled on behavioral bias as the cause, we suggest that this consensus is premature. These mistakes may also arise from a process in which...

Extant theory holds that new entrants' pre-entry experience is an important asset that enhances their post-entry performance. While the logic is compelling, empirical findings have been inconsistent. We argue that this gap results, in part, because the empirical literature tends to confound two...