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NATIONAL ENVIRONMENT, STRATEGY,
AND NEW VENTURE PERFORMANCE :
A THREE COUNTRY STUDY*
by Scott Shane and Lars Kolvereid
ABSTRACT
This study examined population ecology and contingency perspectives on the
performance of new ventures in Great Britain, New Zealand, and Norway. The results
favored a population ecology perspective, showing that most of the performance of the
start-up firms was explained by the national environment faced by the entrepreneur,
rather than by an environment/strategy interaction. The article shows that new
venture performance was higher in unfavorable national environments.
Entrepreneurship researchers have most always looked at environment as
devoted much effort to understanding the structure of the industry in which
the relationship between the business the firm operates (industry concentra-
environment, new venture strategy, and tion ratios, firm formation rates, indus-
performance (Covin and Slevin 1989, try growth rates), rather than as the
Sandberg and Hofer 1987; Tsai, MacMil- characteristics of the national economy
lan, and Low 1991). While these rela- in which the firm is found (Covin and
tionships have been discussed Slevin 1989, Rumelt 1991, Sandberg and
extensively, both theoretically and em- Hofer 1987; Tsai, MacMiUan, and Low
pirically, the existing literature has al- 1991). While the industry structure/firm
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