Getting there: Exploring the role of expectations and preproduction delays in processes of organizational founding

Abstract

Because of preproduction delays, environmental conditions at founding cannot explain organization-building decisions taken earlier. As a consequence, environmental conditions at founding cannot explain organizational founding. Future levels of resource availability may be estimated, but not directly observed by potential entrepreneurs at the time at which they decide to enter preproduction. In this paper, we take these considerations as our starting point to build a dynamic feedback model of organization founding. According to the model, organizational founding is driven by expectations that entrepreneurs form about future levels of resources and, only indirectly, by current levels of popula..