IDEAS home Printed from https://ideas.repec.org/a/eee/jobuve/v5y2016icp55-62.html
   My bibliography  Save this article

How does heterogeneity in experience influence the performance of nascent venture teams?: Insights from the US PSED II study

Author

Listed:
  • Thiess, Dorina
  • Sirén, Charlotta
  • Grichnik, Dietmar

Abstract

Experience is a critical factor in the success of nascent venture teams. However, homogeneous experience levels within teams may have drawbacks. This study focuses upon the performance effects of heterogeneities in experience type – management, industry, and start-up experience – for nascent venture teams. Using the representative US-based PSED II dataset including 519 nascent venture teams, we find that balanced experience types (heterogeneities in management and start-up experience) among nascent venture team members led to increased early-stage performance (measured as the expected revenue after the first operational year and the progress in terms of entrepreneurial activities pursued within the first five years of operation).

Suggested Citation

  • Thiess, Dorina & Sirén, Charlotta & Grichnik, Dietmar, 2016. "How does heterogeneity in experience influence the performance of nascent venture teams?: Insights from the US PSED II study," Journal of Business Venturing Insights, Elsevier, vol. 5(C), pages 55-62.
    • Handle: RePEc:eee:jobuve:v:5:y:2016:i:c:p:55-62
    DOI: 10.1016/j.jbvi.2016.04.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2352673416300063
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbvi.2016.04.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    2. Nick Wilson & Mike Wright & Louise Scholes, 2013. "Family Business Survival and the Role of Boards," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1369-1389, November.
    3. Fernando Muñoz-Bullon & Maria J. Sanchez-Bueno & Antonio Vos-Saz, 2015. "Startup team contributions and new firm creation: the role of founding team experience," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 27(1-2), pages 80-105, January.
    4. Frédéric Delmar & Scott Shane, 2006. "Does Experience Matter? : The Effect of Founding Team Experience on the Survival and Sales of Newly Founded Ventures," Post-Print hal-02311638, HAL.
    5. Kim, Phillip H. & Aldrich, Howard E., 2005. "Social Capital and Entrepreneurship," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 1(2), pages 55-104, June.
    6. John C. Dencker & Marc Gruber & Sonali K. Shah, 2009. "Pre-Entry Knowledge, Learning, and the Survival of New Firms," Organization Science, INFORMS, vol. 20(3), pages 516-537, June.
    7. Boris Groysberg & Jeffrey T. Polzer & Hillary Anger Elfenbein, 2011. "Too Many Cooks Spoil the Broth: How High-Status Individuals Decrease Group Effectiveness," Organization Science, INFORMS, vol. 22(3), pages 722-737, June.
    8. Mikael Samuelsson & Per Davidsson, 2009. "Does venture opportunity variation matter? Investigating systematic process differences between innovative and imitative new ventures," Small Business Economics, Springer, vol. 33(2), pages 229-255, August.
    9. Leon Schjoedt & Erik Monsen & Allison Pearson & Tim Barnett & James J. Chrisman, 2013. "New Venture and Family Business Teams: Understanding Team Formation, Composition, Behaviors, and Performance," Entrepreneurship Theory and Practice, , vol. 37(1), pages 1-15, January.
    10. Martin Gargiulo & Mario Benassi, 2000. "Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital," Organization Science, INFORMS, vol. 11(2), pages 183-196, April.
    11. Lichtenstein, Benyamin B. & Carter, Nancy M. & Dooley, Kevin J. & Gartner, William B., 2007. "Complexity dynamics of nascent entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(2), pages 236-261, March.
    12. Brush, Candida G. & Vanderwerf, Pieter A., 1992. "A comparison of methods and sources for obtaining estimates of new venture performance," Journal of Business Venturing, Elsevier, vol. 7(2), pages 157-170, March.
    13. Dimo Dimov, 2007. "From Opportunity Insight to Opportunity Intention: The Importance of Person–Situation Learning Match," Entrepreneurship Theory and Practice, , vol. 31(4), pages 561-583, July.
    14. Watson, Warren & Stewart, Wayne Jr. & BarNir, Anat, 2003. "The effects of human capital, organizational demography, and interpersonal processes on venture partner perceptions of firm profit and growth," Journal of Business Venturing, Elsevier, vol. 18(2), pages 145-164, March.
    15. Baron, Robert A., 2000. "Counterfactual thinking and venture formation: The potential effects of thinking about "what might have been"," Journal of Business Venturing, Elsevier, vol. 15(1), pages 79-91, January.
    16. Newbert, Scott L. & Tornikoski, Erno T. & Quigley, Narda R., 2013. "Exploring the evolution of supporter networks in the creation of new organizations," Journal of Business Venturing, Elsevier, vol. 28(2), pages 281-298.
    17. Yasemin Y. Kor, 2003. "Experience-Based Top Management Team Competence and Sustained Growth," Organization Science, INFORMS, vol. 14(6), pages 707-719, December.
    18. Dimo Dimov, 2010. "Nascent Entrepreneurs and Venture Emergence: Opportunity Confidence, Human Capital, and Early Planning," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1123-1153, September.
    19. Shepherd, Dean A. & Zacharakis, Andrew & Baron, Robert A., 2003. "VCs' decision processes: Evidence suggesting more experience may not always be better," Journal of Business Venturing, Elsevier, vol. 18(3), pages 381-401, May.
    20. David L. Brannon & Johan Wiklund & J. Michael Haynie, 2013. "The Varying Effects of Family Relationships in Entrepreneurial Teams," Entrepreneurship Theory and Practice, , vol. 37(1), pages 107-132, January.
    21. Marc Gruber & Ian C. MacMillan & James D. Thompson, 2013. "Escaping the Prior Knowledge Corridor: What Shapes the Number and Variety of Market Opportunities Identified Before Market Entry of Technology Start-ups?," Organization Science, INFORMS, vol. 24(1), pages 280-300, February.
    22. Kim, Phillip H. & Longest, Kyle C. & Lippmann, Stephen, 2015. "The tortoise versus the hare: Progress and business viability differences between conventional and leisure-based founders," Journal of Business Venturing, Elsevier, vol. 30(2), pages 185-204.
    23. Beckman, Christine M. & Burton, M. Diane & O'Reilly, Charles, 2007. "Early teams: The impact of team demography on VC financing and going public," Journal of Business Venturing, Elsevier, vol. 22(2), pages 147-173, March.
    24. Baron, Robert A., 1998. "Cognitive mechanisms in entrepreneurship: why and when enterpreneurs think differently than other people," Journal of Business Venturing, Elsevier, vol. 13(4), pages 275-294, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Patrick Gregori & Zulaicha Parastuty, 2021. "Investigating the process of entrepreneurial team member exits: a systematic review and future research directions," Review of Managerial Science, Springer, vol. 15(4), pages 847-878, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diana Hechavarría & Charles Matthews & Paul Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    2. Susan Müller & Alyssa Lara Kirst & Heiko Bergmann & Barbara Bird, 2023. "Entrepreneurs’ actions and venture success: a structured literature review and suggestions for future research," Small Business Economics, Springer, vol. 60(1), pages 199-226, January.
    3. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
    4. Shahid, Pirzada Syed Rizwan, 2023. "Founder's Human Capital and the Entrepreneurial Process Duration," OSF Preprints yf6mg, Center for Open Science.
    5. Kim, Phillip H. & Longest, Kyle C. & Lippmann, Stephen, 2015. "The tortoise versus the hare: Progress and business viability differences between conventional and leisure-based founders," Journal of Business Venturing, Elsevier, vol. 30(2), pages 185-204.
    6. Per Davidsson & Scott Gordon, 2012. "Panel studies of new venture creation: a methods-focused review and suggestions for future research," Small Business Economics, Springer, vol. 39(4), pages 853-876, November.
    7. Klyver, Kim & Steffens, Paul & Lomberg, Carina, 2020. "Having your cake and eating it too? A two-stage model of the impact of employment and parallel job search on hybrid nascent entrepreneurship," Journal of Business Venturing, Elsevier, vol. 35(5).
    8. Abeer Alomani & Rui Baptista & Suma S. Athreye, 2022. "The interplay between human, social and cognitive resources of nascent entrepreneurs," Small Business Economics, Springer, vol. 59(4), pages 1301-1326, December.
    9. Diana M. Hechavarría & Charles H. Matthews & Paul D. Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    10. Marvel, Matthew R. & Wolfe, Marcus T. & Kuratko, Donald F., 2020. "Escaping the knowledge corridor: How founder human capital and founder coachability impacts product innovation in new ventures," Journal of Business Venturing, Elsevier, vol. 35(6).
    11. Carlos Poblete & Vesna Mandakovic, 2021. "Innovative outcomes from migrant entrepreneurship: a matter of whether you think you can, or think you can’t," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 571-592, June.
    12. Kim Klyver & Benson Honig & Paul Steffens, 2018. "Social support timing and persistence in nascent entrepreneurship: exploring when instrumental and emotional support is most effective," Small Business Economics, Springer, vol. 51(3), pages 709-734, October.
    13. Thorsten Semrau & Arndt Werner, 2014. "How Exactly Do Network Relationships Pay Off? The Effects of Network Size and Relationship Quality on Access to Start–Up Resources," Entrepreneurship Theory and Practice, , vol. 38(3), pages 501-525, May.
    14. Chen, H. Shawna & Mitchell, Ronald K. & Brigham, Keith H. & Howell, Roy & Steinbauer, Robert, 2018. "Perceived psychological distance, construal processes, and abstractness of entrepreneurial action," Journal of Business Venturing, Elsevier, vol. 33(3), pages 296-314.
    15. Shim, Jaehu & Davidsson, Per, 2018. "Shorter than we thought: The duration of venture creation processes," Journal of Business Venturing Insights, Elsevier, vol. 9(C), pages 10-16.
    16. Sergeeva, Anastasia & Bhardwaj, Akhil & Dimov, Dimo, 2021. "In the heat of the game: Analogical abduction in a pragmatist account of entrepreneurial reasoning," Journal of Business Venturing, Elsevier, vol. 36(6).
    17. Tali Hadasa Blank & Abraham Carmeli, 2021. "Does founding team composition influence external investment? The role of founding team prior experience and founder CEO," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1869-1888, December.
    18. Per Davidsson & Jan Henrik Gruenhagen, 2021. "Fulfilling the Process Promise: A Review and Agenda for New Venture Creation Process Research," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1083-1118, September.
    19. Tatiana Manolova & Linda Edelman & Candida Brush & Beate Rotefoss, 2012. "Properties of emerging organizations: empirical evidence from Norway," Small Business Economics, Springer, vol. 39(3), pages 763-781, October.
    20. Nathan R. Furr, 2019. "Product Adaptation During New Industry Emergence: The Role of Start-Up Team Preentry Experience," Organization Science, INFORMS, vol. 30(5), pages 1076-1096, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jobuve:v:5:y:2016:i:c:p:55-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-business-venturing-insights .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.