Survival after takeover entry: Effects of entrepreneurs’ domain experience and knowledge acquisition behaviour

Entrepreneurs entering through takeovers are assumed to out-survive new venture founders as they inherit organisational structures. However, empirical findings remain inconsistent and founder-level conditions are rarely theorised. We introduce liability of misfit, defined as an inability to work with inherited organisational structures, which helps explain entrepreneurial exit, even when the firm remains viable. We argue that survival after takeover entry depends on whether entrepreneurs possess domain-specific experience at entry or engage in post-entry knowledge acquisition to avoid this misfit. Using 12 years of panel data on 903 entrepreneurs, we estimated discrete-time hazard models. Results show that lacking domain experience, prior industry and functional knowledge, is associated with higher risk of entrepreneurial exit following takeover entry, while knowledge acquisition such as market analysis, training and industry monitoring, may compensate for this lack. We contribute to research on entrepreneurial exit, entry modes and how human capital and post-entry learning shape post-entry outcomes.