We evaluate the general proposition that the causes of
failure vary as a function of firm age with unique data
from a sample of Canadian bankruptcies. By examining
instances of bankruptcy in some detail, we are able to
extend our understanding of mortality dynamics beyond
the scope of age, size, and population density mechanisms.
Specifically, we examine the relationship between
firm age at failure and firm-level resources and capabilities,
along with industry competitive conditions. The
data provide support for our contention that failure is
attributable to different reasons at different firm ages.
Failure among young firms is attributed to deficiencies
in general management skills, while an evolving competitive
environment is identified as a significant influence
in the demise of older organizations. These findings
are consistent with the expectations of the resourcebased
view, and complementary to population-level studies
of mortality. Our results reinforce the importance of
resource and capability development by young firms as
well as confirming the hazards of rigidity and inertia
among more established firms