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Does negative feedback impact new ventures' organizational identity? The role of founding teams' human capital and feedback source

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  • Domurath, Anne
  • Patzelt, Holger
  • Liebl, Andreas

Abstract

Although a strong organizational identity (OI) is important for venture success, the impact of negative feedback on a new venture's OI is poorly understood. Drawing on human capital theory we argue that founding teams with more founding and industry experience can more effectively defend OI after negative feedback. Using literature on intra-group bias we further theorize that these benefits of founding and industry experience are more pronounced when feedback emerges from sources external rather than internal to the venture. A multi-period research design and data on 1528 survey responses from 598 members of 81 ventures support our model.

Suggested Citation

  • Domurath, Anne & Patzelt, Holger & Liebl, Andreas, 2020. "Does negative feedback impact new ventures' organizational identity? The role of founding teams' human capital and feedback source," Journal of Business Venturing, Elsevier, vol. 35(3).
    • Handle: RePEc:eee:jbvent:v:35:y:2020:i:3:s0883902617309448
    DOI: 10.1016/j.jbusvent.2019.105987
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    5. Ali Anwar & Nicole Coviello & Maria Rouziou, 2023. "Weathering a Crisis: A Multi-Level Analysis of Resilience in Young Ventures," Entrepreneurship Theory and Practice, , vol. 47(3), pages 864-892, May.

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