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

Hellerstedt, Karin; Aldrich, Howard E.; Wiklund, Johan

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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

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: 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