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How Founding Teams’ Diversity Shapes Culture and Impacts Venture Success

The paper focuses on how a founding team's cognitive diversity shapes the creation of a venture's culture and how this impacts venture outcomes such as reliability, legitimacy, and stakeholder engagement. The model presented in the paper serves as an initial step towards understanding culture creation in new ventures, hoping to inspire further research on the topic.

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Academics JVB Blog Academics JVB Blog

Don't mind me, Boss, if I become your Next Competitor

The study analyzes how the market overlap between startups founded by former employees of parent organizations affects their performance. The researchers propose that market overlap has a curvilinear relationship with the likelihood of survival of spin-outs. The previous hierarchical position of founders moderates this relationship. Market overlap helps reduce uncertainty, but too much overlap may lead to hostile actions by parent organizations, creating disruptive competition that lowers spin-outs' survival. The study uses European biotech spin-outs and their parent firms as a sample and finds support for the hypotheses.

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