Do teams really matter? The direct and indirect effects of team composition on financing, network, and performance of university spin-offs

DOI: 10.5176/2251-2012_QQE14.23

Authors: Prof. Dr. Petra Moog, and Christian Soost

Abstract:

This paper studies the specific, direct and indirect effects of team homo- or heterogeneity in spin-off teams on the performance of new ventures. Based on the upper echelon as well as team theory, our primary conclusion is that it is not the direct effect of teams that influences success, but an indirect effect by way of such critical success factors of spin-offs as financing issues and networks that serve as mediators. We discuss the importance of team composition in relation to the different requirements of university spin-offs. To test our hypotheses, we use survey data from a sample of 131 Swiss and German spin-offs and find that team composition does not exhibit direct effects on performance, whereby indirect effects can be found.

Keywords: entrepreneurship; university spin-offs; team heterogeneity and homogeneity