Factors critical in overcoming the liability of newness: Highlighting the role of family, Journal of Private Equity
With a focus on the role of family, we explore factors critical in enabling start-up ventures to attain legitimacy and overcome the liability of newness. Drawing from multiple interviews with leaders of seven start-up ventures, we investigate the function of a variety of factors [e.g., family, distributors, financial supporters, etc.] deemed critical in attaining venture legitimacy. To validate our findings, we conducted additional interviews with three established family ventures. Our discussion highlights the role of family as a legitimizing strategy and provides an increased awareness of how internal and external resources are leveraged by the start-up to gain legitimacy.
C. Dibrell, Justin B. Craig, K. Moores, A. J. Johnson, P. S. Davis
Dibrell, C., Justin B. Craig, K. Moores, A. J. Johnson, and P. S. Davis. 2009. Factors critical in overcoming the liability of newness: Highlighting the role of family. Journal of Private Equity. 12(2): 38-48.