Title

Does It Matter If Your Company Runs Like a Lexus, a Chevy, or a Yugo?

Document Type

Article

Publication Date

10-2005

Department

School of Business

Abstract

Conventional wisdom states that most small firms have a high failure rate (as much as 90 percent within the first year). Recent research indicates that the death rate among small firms may not be as high as previously thought. However, does failure equal death and success equal survival? Does simply not going bankrupt indicate a successful firm? This paper suggests that while survival is important, so is a firm’s standard of living. We theorize that running at a Lexus level does not ensure success and running at a Yugo level does not predict failure, but firms may be judged as more successful in the marketplace by performing at the higher level. We have preliminary data which shows that firms can survive at various levels of management expertise, but successful alliances with other firms is most likely to take place only for higher level performers.

First Page

32

Last Page

44

Volume

10

Issue

4

ISSN

10771158‎, 23263709‎

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