Two's Company: Composition, Structure and Performance of Entrepreneurial Pairs

22 Pages Posted: 16 Aug 2014

See all articles by Alex Coad

Alex Coad

CENTRUM Catolica Graduate Business School

Bram Timmermans

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

Date Written: Summer 2014

Abstract

We explore 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 hierarchical effects of team composition by distinguishing between the ‘primary’ and the ‘secondary’ member. We complement existing work by showing that heterogeneity in team composition is moderated 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. Pairs of younger individuals have lower survival chances but higher employment growth. Pairs led by a male tend toward ‘jobless growth’ in the sense that they have higher growth of profits and sales but not employment. Family firms have lower employment growth, especially when formed with one's mother.

Keywords: diversity, structure, new venture teams, survival, growth, team composition

Suggested Citation

Coad, Alex and Timmermans, Bram, Two's Company: Composition, Structure and Performance of Entrepreneurial Pairs (Summer 2014). European Management Review, Vol. 11, Issue 2, pp. 117-138, 2014, Available at SSRN: https://ssrn.com/abstract=2481374 or http://dx.doi.org/10.1111/emre.12030

Alex Coad (Contact Author)

CENTRUM Catolica Graduate Business School ( email )

1801 Universitaria Avenue
San Miguel
Lima, Lima Lima32
Peru

Bram Timmermans

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway

Aalborg University, Department of Business and Management

Fibigerstræde 4
Aalborg, DK-9220
Denmark

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