Why do so many businesses fail? Researchers say it’s a matter of industry timing

What determines a businesses long-term success? Some researchers argue it comes down to industry timing.

“A venture’s performance following environmental change depends on its internal processes,” he said in a. “Environmental conditions at a business’s founding shape those processes, and they quickly become cemented and embedded in beliefs about how to operate.” The research found that companies achieved the most success when changes in the market match the conditions they started in. But the study also found a stabilized industry environment can make a company less likely to succeed if the team is accustomed to perpetual change.

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