What question did this study set out to answer?

The aim is to explain why entrepreneurial ventures in fast-advancing societies scale, stagnate, or collapse through a strategic framework.

March 12, 2026Open Access

Why Ventures Scale, Stall, or Collapse in Fast-Advancing Societies

Key Points

The aim is to explain why entrepreneurial ventures in fast-advancing societies scale, stagnate, or collapse through a strategic framework.
Developed a strategic framework based on the Fast-Advancing Societies (FAS) framework.
Examined interactions among institutional asynchrony, cultural legitimacy, and consumer capital.
Identified mechanisms affecting venture outcomes, such as legitimacy formation and coordination constraints.
Proposed that conventional strategies fail in rapidly changing markets.
Identified distinct mechanisms influencing scaling, including imitation risk and consumer capital dynamics.

Abstract

This paper develops a strategic framework explaining why entrepreneurial ventures in fast-advancing societies follow divergent trajectories of scaling, stagnation, or collapse. Building on the Fast-Advancing Societies (FAS) framework, the paper examines how institutional asynchrony, cultural legitimacy, and consumer capital interact to shape venture outcomes. It proposes that conventional strategy frameworks derived from stable institutional environments fail to adequately explain entrepreneurial performance in rapidly transforming markets. The paper identifies distinct mechanisms that influence venture scaling, including legitimacy formation, coordination constraints, imitation risk, and the accumulation or erosion of consumer capital. Originally disseminated as an SSRN Working Paper. SSRN abstract page: https: //papers. ssrn. com/sol3/papers. cfm? abstractᵢd=6270778

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