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Does Experience Matter?: The Effect of Founding Team Experience on the Survival and Sales of Newly Founded Ventures

Frédéric Delmar () and Scott Shane

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Abstract: While earlier researchers have argued that the founding team's industry and start-up experience should positively affect new venture performance, robust empirical support for these arguments has been lacking. Moreover, theory suggests that the relationship between founding team experience and new venture performance may be more complex than previous empirical research suggests.We test specific hypotheses about the effect of founding team industry and start-up experience on the survival and sales of 223 new ventures initiated by a representative sample of Swedish new ventures, using a methodology that overcomes the limitations to previous research. Our results show that founding team experience enhances both new venture survival and sales, but that the effects are non-linear, and vary with venture age.

Date: 2006-08-01
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Published in Strategic Organization, 2006, pp.215-247 P

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