The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment
How does the relationship between founding team composition and venture performance depend on the venture's strategy and business environment? Using data from a novel survey of 2,067 firms, we show that while diverse founding teams tend to exhibit higher performance, this is not universally tru...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
| Published: |
John Wiley & Sons, Inc
2014
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| Online Access: | http://hdl.handle.net/1721.1/88085 https://orcid.org/0000-0003-0435-6525 |
| _version_ | 1826194831271002112 |
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| author | Eesley, Charles E. Hsu, David H. Roberts, Edward B. |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Eesley, Charles E. Hsu, David H. Roberts, Edward B. |
| author_sort | Eesley, Charles E. |
| collection | MIT |
| description | How does the relationship between founding team composition and venture performance depend on the venture's strategy and business environment? Using data from a novel survey of 2,067 firms, we show that while diverse founding teams tend to exhibit higher performance, this is not universally true. We find that founding teams that are diverse are likely to achieve high performance in a competitive commercialization environment. On the other hand, technically focused founding teams are aligned with a cooperative commercialization environment and when the enterprise pursues an innovation strategy. These results are robust to corrections for endogenous team formation concerns. The findings suggest that ventures cannot ignore founding team composition and expect to later professionalize their top management teams to align with their strategy and environment. |
| first_indexed | 2024-09-23T10:02:32Z |
| format | Article |
| id | mit-1721.1/88085 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T10:02:32Z |
| publishDate | 2014 |
| publisher | John Wiley & Sons, Inc |
| record_format | dspace |
| spelling | mit-1721.1/880852022-09-26T15:20:50Z The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment Eesley, Charles E. Hsu, David H. Roberts, Edward B. Sloan School of Management Roberts, Edward B. How does the relationship between founding team composition and venture performance depend on the venture's strategy and business environment? Using data from a novel survey of 2,067 firms, we show that while diverse founding teams tend to exhibit higher performance, this is not universally true. We find that founding teams that are diverse are likely to achieve high performance in a competitive commercialization environment. On the other hand, technically focused founding teams are aligned with a cooperative commercialization environment and when the enterprise pursues an innovation strategy. These results are robust to corrections for endogenous team formation concerns. The findings suggest that ventures cannot ignore founding team composition and expect to later professionalize their top management teams to align with their strategy and environment. Ewing Marion Kauffman Foundation MIT Entrepreneurship Center Mack Center for Managing Technological Innovation 2014-06-24T13:43:40Z 2014-06-24T13:43:40Z 2013-09 2013-08 Article http://purl.org/eprint/type/JournalArticle 01432095 http://hdl.handle.net/1721.1/88085 Eesley, Charles E., David H. Hsu, and Edward B. Roberts. “The Contingent Effects of Top Management Teams on Venture Performance: Aligning Founding Team Composition with Innovation Strategy and Commercialization Environment.” Strategic Management Journal (September 2013): https://orcid.org/0000-0003-0435-6525 en_US http://dx.doi.org/10.1002/smj.2183 Strategic Management Journal Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf John Wiley & Sons, Inc Other univ. web domain |
| spellingShingle | Eesley, Charles E. Hsu, David H. Roberts, Edward B. The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment |
| title | The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment |
| title_full | The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment |
| title_fullStr | The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment |
| title_full_unstemmed | The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment |
| title_short | The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment |
| title_sort | contingent effects of top management teams on venture performance aligning founding team composition with innovation strategy and commercialization environment |
| url | http://hdl.handle.net/1721.1/88085 https://orcid.org/0000-0003-0435-6525 |
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