Title: Reorganisation success in bankruptcy: the role of entrepreneur experience, characteristics and commitment
Authors: Stefan Mayr; Christine Mitter; Christine Duller; Viktoria Mooshammer
Addresses: Institute of Management Control and Consulting, Johannes Kepler University of Linz, 4020 Linz, Austria ' Department of Accounting and Finance, Salzburg University of Applied Sciences, 5412 Puch/Salzburg, Austria; Department of Economics and Finance, University of the Free State, 9301 Bloemfontein, South Africa ' Institute of Applied Statistics, Johannes Kepler University of Linz, 4020 Linz, Austria ' Institute of Management Control and Consulting, Johannes Kepler University of Linz, 4020 Linz, Austria
Abstract: We examine how entrepreneur experience, characteristics and commitment impact the success of a firm's reorganisation. We refer to the resource-based view and upper echelons theory as a theoretical basis. Empirical research is based on a sample of 158 bankrupt Austrian small- and medium-sized enterprises (SMEs). To test our model, we applied bivariate analyses and logistic regression. The personality of the entrepreneur, in particular strong dynamic-creative talents, as well as concentrated ownership and financial contributions as reflections of owners' commitment appear to be important drivers for overcoming a crisis successfully. While management and industry experience of the entrepreneur as well as education seem not to influence reorganisation success, having a reorganisation plan appears to be the most decisive factor. Our findings indicate that the entrepreneurial traits that are essential for company growth and the avoidance of failure do not impact the success of the firm's reorganisation.
Keywords: reorganisation; entrepreneur characteristics; SMEs; small- and medium-sized enterprises; financial crisis; bankruptcy.
International Journal of Entrepreneurial Venturing, 2021 Vol.13 No.5, pp.528 - 548
Received: 08 Feb 2021
Accepted: 24 Jun 2021
Published online: 24 Nov 2021 *