Entrepreneurial teams and early performance of new ventures: An analysis of Taiwanese tech-firms

Abstract

In this paper, we investigate the effects of the relation between the human capital of the entrepreneurial team, R&D-manufacturing linkage and the performance of new technology-based firms in accordance with a resource-based view. We try to comprehend how entrepreneurial teams and R&D-manufacturing linkage shape firm’s ability to have a positive outcomes in terms of company sales revenue and international connection. We take advantage of a new data relating to a sample composed of 152 taiwanese young firms that operate in technology-based industries. We find that firms with higher proportionally advanced professional education entrepreneurs in the team have a positive effect on firms' performance. Furthermore, it is R&D-manufacturing linkage that determines technology-based firm’s growth. Individuals with entrepreneurial experiences exerts key influences on firm's international connection. Firms can also benefit from their team members' background affiliation and achieve better performance. Lastly, we provide evidence that there are gains from the complementary capabilities of entrepreneurial teams and firms relating to (i) advanced professional education , (ii)entrepreneurial or CEO experiences and team members' background affiliation and (iii) R&D-manufacturing linkage. We conclude that the human capital of entrepreneurial team and R&D-manufacturing linkage of new technology-based firms have a critical impact on the firm’s development. These findings are consistent with and complements the growing body of research that emphasizes the importance of entrepreneurial teams in developing knowledge about the strategies and allocation of the enterprises resources.