Two's Company: Human Capital Composition and Performance of Entrepreneurial Pairs
AbstractWe study the effects of diverse team composition on the survival and growth of new ventures using the Danish Linked Employer-Employee database. To get cleaner measures of diverse team composition, we focus on entrepreneurial dyads, and also investigate the asymmetric effects of team composition by distinguishing between the `primary' and the `secondary' founder. We complement existing work by showing that heterogeneity in team composition is affected by the asymmetric hierarchical structure within the team, and that a unidimensional diversity indicator (which is usually applied) fails to capture a number of performance effects of heterogeneous team composition. Ventures with a STEM-educated primary founder and a Business-educated secondary founder have high employment growth, while the opposite combination (Business first, STEM second) has low employment growth. Pairs of younger individuals have lower survival chances but higher employment growth. Family firms have lower employment growth, especially when formed with your mother.
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Bibliographic InfoPaper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 12-12.
Date of creation: 2012
Date of revision:
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Web page: http://www.druid.dk/
Diversity; Entrepreneurial Teams; Survival; Growth; Team Composition;
Other versions of this item:
- Alex Coad & Bram Timmermans, 2012. "Two's Company: Human Capital Composition and Performance of Entrepreneurial Pairs," SPRU Working Paper Series 201, SPRU - Science and Technology Policy Research, University of Sussex.
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-ENT-2013-01-07 (Entrepreneurship)
- NEP-HRM-2013-01-07 (Human Capital & Human Resource Management)
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