Entrepreneurial Team Formation Dynamics: Mind the Sector

42 Pages Posted: 20 Nov 2014  

Boris Mrkajic

Politecnico di Milano

Luca Grilli

Politecnico di Milano

Paola Garrone

Politecnico di Milano

Date Written: September 15, 2014

Abstract

The purpose of this paper is to extend existing research on entrepreneurial team formation under a competence-based perspective by empirically testing the influence of the sectoral context on that dynamics. We use inductive, theory-building design to understand how different sectoral characteristics moderate the influence of entrepreneurial opportunity recognition on subsequent entrepreneurial team formation. A sample of 195 founders who teamed up in the nascent phase of Interned-based and Cleantech sectors is analysed. The results suggest a twofold moderating effect of the sectoral context. First, a technologically more challenging sector (i.e. Cleantech) demands technically more skilled entrepreneurs, but at the same time, it requires still fairly commercially experienced and economically competent individuals. Furthermore, the business context also appears to exert an important influence on team formation dynamics: data reveals that individuals are more prone to team up with co-founders possessing complementary know-how when they are starting a new business venture in Cleantech rather than in the Internet-based sector. Overall, these results stress how the business context cannot be ignored when analysing entrepreneurial team formation dynamics by offering interesting insights on the matter to prospective entrepreneurs and interested policymakers.

Keywords: Founders’ human capital, entrepreneurial team formation, entrepreneurial team complementarity, business context, industrial sector

JEL Classification: J24, M54, L26

Suggested Citation

Mrkajic, Boris and Grilli, Luca and Garrone, Paola, Entrepreneurial Team Formation Dynamics: Mind the Sector (September 15, 2014). Available at SSRN: https://ssrn.com/abstract=2527897 or http://dx.doi.org/10.2139/ssrn.2527897

Boris Mrkajic (Contact Author)

Politecnico di Milano ( email )

Via Raffaele Lambruschini, 4B
Milan, 20156
Italy

Luca Grilli

Politecnico di Milano ( email )

20134 Milan
Italy

Paola Garrone

Politecnico di Milano ( email )

piazza Leonardo da Vinci 32
Milano, 20133
Italy
+39-02-23992742 (Phone)

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