Work

Does business planning facilitate the development of new ventures?

Year: 2003

Type: article

Abstract: Many prior researchers have criticized business planning, arguing that it interferes with the efforts of firm founders to undertake more valuable actions to develop their fledgling enterprises. In this paper, we challenge this negative view of business planning, arguing that business planning is an important precursor to action in new ventures. By helping firm founders to make decisions, to balance resource supply and demand, and to turn abstract goals into concrete operational steps, business planning reduces the likelihood of venture disbanding and accelerates product development and venture organizing activity. Empirically, we examine 223 new ventures initiated in the first 9 months of 1998 by a random sample of Swedish firm founders and provide support for our hypotheses. Copyright © 2003 John Wiley & Sons, Ltd.

Source: Strategic Management Journal

DOI: 10.1002/smj.349

Authors: Frédéric Delmar, Scott Shane

Institutions: Stockholm School of Economics, Case Western Reserve University

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funders: University of Kentucky, Knut och Alice Wallenbergs Stiftelse, Stockholms Universitet

OpenAlex ID: W2091066942

FWCI: 40.37

Cites: 58

Cited by: 940

Related to: 10