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Disentangling the Effects of New Venture Team Functional Heterogeneity on New Venture Performance

Uwe Cantner (), Maximilian Goethner () and Michael Stuetzer ()
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Maximilian Goethner: Friedrich Schiller University of Jena, Department of Economics, DFG-GK-1411 "The Economics of Innovative Change"
Michael Stuetzer: Friedrich Schiller University of Jena, Department of Economics, DFG-GK-1411 "The Economics of Innovative Change"

Authors registered in the RePEc Author Service: Maximilian Göthner () and Michael Stützer ()

No 2010-029, Jena Economic Research Papers from Friedrich-Schiller-University Jena

Abstract: Previous research on entrepreneurial teams has failed to settle the controversy over whether team heterogeneity helps or hinders new venture performance. Reconciling this inconsistency, this paper suggests a new conceptual approach to disentangle differential effects of team heterogeneity by modeling two separate heterogeneity dimensions, namely knowledge scope and knowledge disparity. Analyzing unique data on functional experiences of the members of 337 start-up teams, we find support for our contention of team heterogeneity as a two-dimensional concept. Results suggest that knowledge disparity negatively relates to both start-ups' entrepreneurial and innovative performance. In contrast, we find knowledge scope to positively affect entrepreneurial performance, while it shows an inverse U-shaped relationship to innovative start-up performance.

Keywords: Entrepreneurial teams; New venture performance; Team heterogeneity; Team diversity (search for similar items in EconPapers)
JEL-codes: L26 M13 L25 (search for similar items in EconPapers)
Date: 2010-04-26
New Economics Papers: this item is included in nep-ent and nep-ppm
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