A STUDY OF THE IMPACT OF OWNERS MODE OF ENTRY ON VENTURE PERFORMANCE AND MANAGEMENT PATTERNS

This study examined if firm performance and the associated patterns of management varied for owner-started (OS), buyout (BO), and family fir ms (FF). For this we compared these firms' self-reported ROA, annual s ales, business strengths, competitive strategies, and management pract ices. Not only did owner-started firms achieve higher profits than the family firms and buyouts, but their paths to profitability differed i n important respects from those of the buyouts and family firms. Owner s' mode of entry influenced firm sales as well Family firms' sales exc eeded OSs' and BOs', and their management approaches to performance co ntrasted with those of the others. Further, our findings concurred wit h previous studies which suggested that variations in sales and profit s were likely to be influenced by different management actions.