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A terminal assessment of stages theory : introducing a dynamic states approach to entrepreneurship

Levie, J.D. and Lichtenstein, Benyamin B. (2010) A terminal assessment of stages theory : introducing a dynamic states approach to entrepreneurship. Entrepreneurship Theory and Practice, 34 (2). pp. 317-350. ISSN 1042-2587

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Abstract

Stages of Growth models were the most frequent theoretical approach to understanding entrepreneurial business growth from 1962 to 2006; they built on the growth imperative and developmental models of that time. An analysis of the universe of such models (N=104) published in the management literature shows no consensus on basic constructs of the approach, nor is there any empirical confirmations of stages theory. However, by changing two propositions of the stages models, a new dynamic states approach is derived. The dynamic states approach has far greater explanatory power than its precursor, and is compatible with leading edge research in entrepreneurship.