Entrepreneurial team personality-faultline strength and performance: the non-linear relationship and boundary conditions

Abstract

PurposeThe purpose of this paper is to explore the effect of a team’s personality faultlines on entrepreneurial performance. Additionally, this paper verifies the moderating effect of shared leadership on the connection between the two varies. The authors focus on the upper echelons theory and social identity theory as well as personality faultlines in entrepreneurial teams.Design/methodology/approachAn online survey was conducted using data collected in China. Data from 618 members from 144 new venture teams were collected to examine the authors’ hypothesis.FindingsThe authors find a U-shaped relationship between the strength of entrepreneurial teams' personality-faultline and entrepreneurial performance. Additionally, shared leadership negatively moderates this U-shaped relationship. Specifically, when the entrepreneurial team has a high level of shared leadership, both the positive and negative relationships between the strength of the personality faultlines and entrepreneurial performance are weaker.Originality/valueThe research offers important theoretical and practical implications for the formation of entrepreneurial teams.