Two's Company: Human Capital Composition and Performance of Entrepreneurial Pairs

45 Pages Posted: 2 Nov 2012

See all articles by Alex Coad

Alex Coad

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics

Bram Timmermans

Norwegian School of Economics (NHH); Aalborg University, Department of Business and Management

Date Written: October 31, 2012

Abstract

We study the effects of diverse team composition on the survival and growth of new ventures using the Danish Linked Employer-Employee database. To get cleaner measures of diverse team composition, we focus on entrepreneurial dyads, and also investigate the asymmetric e ects of team composition by distinguishing between the 'primary' and the 'secondary' founder. We complement existing work by showing that heterogeneity in team composition is a ected by the asymmetric hierarchical structure within the team, and that a unidimensional diversity indicator (which is usually applied) fails to capture a number of performance effects of heterogeneous team composition. Ventures with a STEM-educated primary founder and a Business-educated secondary founder have high employment growth, while the opposite combination (Business first, STEM second) has low employment growth. Pairs of younger individuals have lower survival chances but higher employment growth. Family firms have lower employment growth, especially when formed with your mother.

Keywords: Diversity, Entrepreneurial Teams, Survival, Growth, Team Composition

JEL Classification: L25, L26, J21

Suggested Citation

Coad, Alex and Timmermans, Bram, Two's Company: Human Capital Composition and Performance of Entrepreneurial Pairs (October 31, 2012). Available at SSRN: https://ssrn.com/abstract=2169547 or http://dx.doi.org/10.2139/ssrn.2169547

Alex Coad

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics ( email )

Kahlaische Strasse 10
D-07745 Jena, 07745
Germany

Bram Timmermans (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway

Aalborg University, Department of Business and Management

Fibigerstr├Žde 4
Aalborg, DK-9220
Denmark

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