12 八月 2026
Research
Management
Prof. Stan LI Xiao
Published in Journal of Management, September 2025
Why do some start-ups thrive while others fail in emerging industries? In his research, Professor Stan LI from the Department of Management sheds new light on the factors that influence venture survival in highly uncertain and fast-evolving markets. Challenging the conventional view that legitimacy is a single, positive force, the study demonstrates that new ventures simultaneously face pressures of both legitimacy and illegitimacy. The findings reveal how these competing forces, together with the actions of industry rivals, can significantly shape a firm's chances of survival. The research offers valuable insights for entrepreneurs, investors, and policymakers seeking to foster sustainable growth in emerging sectors.
WHY: This study examines what determines venture survival in infant industries, where all firms are new and face high uncertainty and mortality risk. Prior ecological research largely focuses on mature industries and treats legitimacy as a single construct. We argue that ventures simultaneously confront both legitimacy and illegitimacy, which jointly shape survival outcomes.
WHAT: We address three gaps by focusing on infant industries, distinguishing between industry- and venture-level legitimacy (including rivals’ legitimacy), and conceptualizing illegitimacy as distinct from legitimacy.
WHERE: The study advances population ecology and entrepreneurship theory and offers practical guidance for ventures in emerging sectors such as AI and fintech.
HOW: Using data from Chinese bicycle-sharing ventures (2014–2017), we show that industry legitimacy lowers mortality, illegitimacy raises it, and rival strategies significantly influence survival dynamics.