Individual responses to firm failure: Appraisals, grief, and the influence of prior failure experience

Anna S. Jenkins, Johan Wiklund, Ethel Brundin

Research output: Contribution to journalArticle

95 Scopus citations

Abstract

This paper provides a systematic assessment of how entrepreneurs react to firm failure. We use appraisal theory as an overarching theoretical framework and hypothesize that the more the failure experience is appraised as stressful in terms of its implications for harm or loss, the greater the feelings of grief. To test this hypothesis we developed a unique database of entrepreneurs who recently filed for firm bankruptcy. Our results support that there is great variation in responses to firm failure, and we provide theoretically valid explanations to why this is the case. These findings have substantial implications for how scholars conceive and theorize about entrepreneurial failure.

Original languageEnglish (US)
Pages (from-to)17-33
Number of pages17
JournalJournal of Business Venturing
Volume29
Issue number1
DOIs
StatePublished - Jan 1 2014

Keywords

  • Appraisals
  • Firm failure
  • Grief
  • Prior failure experience
  • Psychological capital

ASJC Scopus subject areas

  • Business and International Management
  • Management of Technology and Innovation

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