TY - JOUR
T1 - The role of top management teams in transforming technology-based new ventures' product introductions into growth
AU - Nuscheler, Daniela
AU - Engelen, Andreas
AU - Zahra, Shaker A.
N1 - Publisher Copyright:
© 2018 Elsevier Inc.
Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 2019/1
Y1 - 2019/1
N2 - 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.
AB - 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.
KW - Growth
KW - Human capital theory
KW - New product introductions
KW - Technology-based new ventures
UR - http://www.scopus.com/inward/record.url?scp=85048834729&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85048834729&partnerID=8YFLogxK
U2 - 10.1016/j.jbusvent.2018.05.009
DO - 10.1016/j.jbusvent.2018.05.009
M3 - Article
AN - SCOPUS:85048834729
SN - 0883-9026
VL - 34
SP - 122
EP - 140
JO - Journal of Business Venturing
JF - Journal of Business Venturing
IS - 1
ER -