The Impact of Past Performance on the Exit of Team Members in Young Firms: The Role of Team Composition

Babson College Entrepreneurship Research Conference (BCERC) 2007

Frontiers of Entrepreneurship Research 2007

14 Pages Posted: 6 Dec 2007

See all articles by Karin Hellerstedt

Karin Hellerstedt

Jonkoping University - Jonkoping International Business School (JIBS)

Howard E. Aldrich

University of North Carolina (UNC) at Chapel Hill - Department of Sociology; University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Johan Wiklund

Syracuse University

Abstract

We investigate the impact of past performance and team composition on exits of members from entrepreneurial teams. Not only does the homophily principle guide team formation, but it also seems to drive exits from teams. Our findings suggest that greater internal diversity along some but not all demographic dimensions is positively associated with a higher rate of team member exits. At the individual level, we find that the more individuals deviate from the norm in terms of age, the more likely they are to leave a team.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Hellerstedt, Karin and Aldrich, Howard E. and Wiklund, Johan, The Impact of Past Performance on the Exit of Team Members in Young Firms: The Role of Team Composition. Babson College Entrepreneurship Research Conference (BCERC) 2007; Frontiers of Entrepreneurship Research 2007. Available at SSRN: https://ssrn.com/abstract=1059801

Karin Hellerstedt (Contact Author)

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Howard E. Aldrich

University of North Carolina (UNC) at Chapel Hill - Department of Sociology ( email )

Chapel Hill, NC 27599
United States

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

McColl Building
Chapel Hill, NC 27599-3490
United States

Johan Wiklund

Syracuse University ( email )

Whitman School of Management
720 University Avenue
Syracuse, NY 13244-2130
United States

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