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- W4385213749 abstract "Previous research has obtained mixed findings on how political ties affect new venture performance. We posit that this discrepancy is the result of the failure of previous studies to consider how the benefits of establishing political ties differ across various levels of government. Although such ties enhance the legitimacy of ventures by providing authoritative signals to stakeholders, which is a critical asset for new venture performance, we posit that legitimacy via legal registration may hinder the survival of new ventures early in their formation. To test our arguments, we examine the effect of both types of political ties, local and central, on new venture failure. In addition, we examine how legal registration affects the relationship between such ties and new venture failure during the first two years of formation. Unique to our study, we tested our theoretical contention based on panel data of 5127 new ventures founded between 2003 and 2010 in Jordan. The analysis reveals that new ventures with local ties are less likely to fail than those without such ties, whereas central ties have no significant effect on failure. In addition, new ventures that are both registered and have local political ties are more likely to fail than those without such ties and are not registered. The theoretical contributions and implications are discussed." @default.
- W4385213749 created "2023-07-25" @default.
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- W4385213749 date "2023-08-01" @default.
- W4385213749 modified "2023-09-27" @default.
- W4385213749 title "Founders’ Political Ties, Legal Registration and New Venture Failure" @default.
- W4385213749 doi "https://doi.org/10.5465/amproc.2023.13217abstract" @default.
- W4385213749 hasPublicationYear "2023" @default.
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