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The Balanced Scorecard Approach to Predicting New Venture Survival
Yasheng Chen, Simon Fraser University
Johnny Jermias, Simon Fraser University
ABSTRACT. This study uses a balanced-scorecard (BSC) approach to predict the survivability of new ventures. We hypothesize that new venture performance in the four perspectives of the BSC framework will be positively related to new venture survival. Using a sample of 3729 new ventures and the Cox survival model, we found that employee training (learning and innovation perspective); employee productivity and accounts receivable collection period (internal business process perspective); export intensity (customer perspective); and sales growth (financial perspective) are positively related to new venture survival. This study contributes to the existing BSC literature by using new venture survivability as a measure of business success and investigating the role of performance measures in the four BSC perspectives in order to predict firms’ survival at the early stage of their life cycle.
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