Abstract

http://ssrn.com/abstract=1498740
 
 

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The Contingent Effects of Top Management Teams on Venture Performance: Aligning Founding Team Composition with Innovation Strategy and Commercialization Environment


Charles E. Eesley


Stanford University

David H. Hsu


University of Pennsylvania - Management Department

Edward B. Roberts


Massachusetts Institute of Technology (MIT) - Entrepreneurship Center

August 6, 2013

Strategic Management Journal, Forthcoming
MIT Sloan Research Paper No. 4762-09

Abstract:     
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.

Number of Pages in PDF File: 39

Keywords: entrepreneurship, performance, strategy, founding conditions, founding teams, new firms

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Date posted: November 3, 2009 ; Last revised: August 7, 2013

Suggested Citation

Eesley, Charles E. and Hsu, David H. and Roberts, Edward B., The Contingent Effects of Top Management Teams on Venture Performance: Aligning Founding Team Composition with Innovation Strategy and Commercialization Environment (August 6, 2013). Strategic Management Journal, Forthcoming; MIT Sloan Research Paper No. 4762-09. Available at SSRN: http://ssrn.com/abstract=1498740 or http://dx.doi.org/10.2139/ssrn.1498740

Contact Information

Charles E. Eesley (Contact Author)
Stanford University ( email )
473 Via Ortega
Stanford, CA 94305-9025
United States
(740) 236-4653 (Phone)
HOME PAGE: http://www.stanford.edu/~cee
David H. Hsu
University of Pennsylvania - Management Department ( email )
The Wharton School
Philadelphia, PA 19104-6370
United States
215-746-0125 (Phone)
215-898-0401 (Fax)

Edward B. Roberts
Massachusetts Institute of Technology (MIT) - Entrepreneurship Center ( email )
Cambridge, MA
United States
617-253-4934 (Phone)
617-253-2660 (Fax)
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