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

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Author Info

  • Uwe Cantner

    ()
    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • 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")

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.

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File URL: http://pubdb.wiwi.uni-jena.de/pdf/wp_2010_029.pdf
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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-029.

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Date of creation: 26 Apr 2010
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Handle: RePEc:jrp:jrpwrp:2010-029

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Keywords: Entrepreneurial teams; New venture performance; Team heterogeneity; Team diversity;

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Cited by:
  1. Andreas Koch & Jochen Späth & Harald Strotmann, 2013. "The role of employees for post-entry firm growth," Small Business Economics, Springer, vol. 41(3), pages 733-755, October.
  2. Rosendahl Huber, Laura & Sloof, Randolph & van Praag, Mirjam, 2014. "Jacks-of-All-Trades? The Effect of Balanced Skills on Team Performance," IZA Discussion Papers 8237, Institute for the Study of Labor (IZA).
  3. Elisabeth Bublitz & Michael Fritsch & Michael Wyrwich, 2013. "Balanced Skills and the City: An Analysis of the Relationship between Entrepreneurial Skill Balance, Thickness and Innovation," Jena Economic Research Papers 2013-010, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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