New publication in Schmalenbach Journal of Business Research: " Entrepreneur's Exit Strategy Intentions and Their Final Exit Paths"
Entrepreneurs' Exit Strategy Intentions and Their Final Exit Paths, Sascha Hohen, Lars Schweizer, 2021, Schmalenbach Journal of Business Research, doi.org/10.1007/s41471-021-00123-7
[published online 23. November 2021]
Abstract: This paper explores entrepreneurs’ initially intended exit strategies and compares them to their ﬁnal exit paths using an inductive approach that builds on the grounded theory methodology. Our data shows that initially intended and ﬁnal exit strategies differ among entrepreneurs. Two groups of entrepreneurs emerged from our data. The ﬁrst group comprises entrepreneurs who ﬁnanced their ﬁrms through equity investors. The second group is made up of entrepreneurs who ﬁnanced their businesses solely with their own equities. Our data shows that the ﬁrst group originally intended a ﬁnancial harvest exit strategy and settled with this harvest exit strategy. The second group initially intended a stewardship exit strategy but did not succeed. We used the theory of planned behavior and the behavioral agency model to analyze our data. By examining our results from these two theoretical perspectives, our study explains how entrepreneurs’ exit intentions lead to their actual exit strategies.