The role of top management teams in transforming technology-based new ventures' product introductions into growth

Daniela Nuscheler, Andreas Engelen, Shaker A. Zahra

Research output: Contribution to journalArticlepeer-review

15 Scopus citations

Abstract

The literature highlights the importance of top management teams (TMTs) for technology-based new ventures' success in achieving growth, which is often achieved through product introductions. The human capital theory suggests that TMT members' skills, which are typically derived from their education and experience, can facilitate the transformation of new product introductions into growth. We also propose that multiple products that must be managed and brought to the marketplace smoothly and flexibly benefit from the lower coordination needs and conflicts that are typical of functionally homogeneous teams. Using a unique, multi-source dataset on 374 US technology-based new ventures during the period from 2005 to 2014, we find that new product introductions help technology-based new ventures grow only when the TMT has startup experience and is not functionally diverse. Our findings lead us to echo calls in the TMT literature to move away from simple direct-effect models to more situation-dependent analyses of TMT diversity.

Original languageEnglish (US)
Pages (from-to)122-140
Number of pages19
JournalJournal of Business Venturing
Volume34
Issue number1
DOIs
StatePublished - Jan 2019

Keywords

  • Growth
  • Human capital theory
  • New product introductions
  • Technology-based new ventures

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