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Judging a business by its cover: An institutional perspective on new ventures and the business plan

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  • Karlsson, Tomas
  • Honig, Benson

Abstract

Business plans are widely spread among new businesses, and they are supported by various universities, governmental assistance agencies, management consultants and a wide array of literature. Business plans are often taken for granted as highly useful tools that should be frequently updated and used. This study is based on data from six companies and their environments, over five years, using several forms of data collection such as interviews, observations, and archival data. In contrast to previous studies, we found that initial conformity to business plan norms gradually and without exception lead to loose coupling. Entrepreneurs who wrote business plans never updated or rarely referred to their plans after writing them.

Suggested Citation

  • Karlsson, Tomas & Honig, Benson, 2009. "Judging a business by its cover: An institutional perspective on new ventures and the business plan," Journal of Business Venturing, Elsevier, vol. 24(1), pages 27-45, January.
    • Handle: RePEc:eee:jbvent:v:24:y:2009:i:1:p:27-45
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    References listed on IDEAS

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    Cited by:

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    2. König, Marc & Ungerer, Christina & Baltes, Guido & Terzidis, Orestis, 2019. "Different patterns in the evolution of digital and non-digital ventures' business models," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 844-852.
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    4. Honig, Benson & Samuelsson, Mikael, 2021. "Business planning by intrapreneurs and entrepreneurs under environmental uncertainty and institutional pressure," Technovation, Elsevier, vol. 99(C).
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    6. Chwolka, Anne & Raith, Matthias G., 2012. "The value of business planning before start-up — A decision-theoretical perspective," Journal of Business Venturing, Elsevier, vol. 27(3), pages 385-399.
    7. Honig, Benson & Samuelsson, Mikael, 2014. "Data replication and extension: A study of business planning and venture-level performance," Journal of Business Venturing Insights, Elsevier, vol. 1, pages 18-25.
    8. Fisher, Greg & Kuratko, Donald F. & Bloodgood, James M. & Hornsby, Jeffrey S., 2017. "Legitimate to whom? The challenge of audience diversity and new venture legitimacy," Journal of Business Venturing, Elsevier, vol. 32(1), pages 52-71.
    9. Samagaio, António & Crespo, Nuno Fernandes & Rodrigues, Ricardo, 2018. "Management control systems in high-tech start-ups: An empirical investigation," Journal of Business Research, Elsevier, vol. 89(C), pages 351-360.
    10. Troilo, Michael & Bouchet, Adrien & Urban, Timothy L. & Sutton, William A., 2016. "Perception, reality, and the adoption of business analytics: Evidence from North American professional sport organizations," Omega, Elsevier, vol. 59(PA), pages 72-83.
    11. Boss, Alan D. & Yan, Jiaju & Reger, Rhonda K., 2023. "Keep on keeping on: A psychological approach to entrepreneurial persistence," Journal of Business Venturing Insights, Elsevier, vol. 19(C).

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