Founding Resources and Intentional Exit Sales Strategies

The imprinting perspective suggests that the decisions made early in the life of a firm may have lasting impact on its ability to move in a strategic direction. Utilizing this perspective, we examine whether the initial strategic resources (human, financial, and technological) imprint ventures in regard to the existence of an exit sale strategy and with variations in three common exit sales strategies, namely, (a) sale of the firm’s share to the public market (initial public offering [IPO]), (b) sale to another firm (strategic acquisition), and (c) sale of the firm to another individual (private sale). Our results indicate that technological resources are related to the presence of an intended exit sale strategy. Furthermore, human, financial, and technological resources differentially impact the three sales strategies, and firm size moderates the imprinting effects of resources on exit outcomes differentially depending on the type of resource and exit strategy being considered. This work contributes to our limited understanding of exit sales strategies and demonstrates that different initial resources affect whether the firm has an exit sales strategy and imprint variations in the type of exit sale considered in unique ways. Furthermore, the article advances our understanding of the impact of size on exit sales strategies. Finally, this research adds to the imprinting literature by demonstrating (as many have proposed) that the start-up period is a sensitive period that imprints the firm with enduring consequences and outcomes.