Examining Trust within the Team in IT Startup Companies--An Empirical Study in the People's Republic of China

Abstract

The People's Republic of China has shown strong economic growth rates within the last years, which can in part be attributed to the increasing foundation of startup companies, especially in the IT sector. Due to a lack of familiarity with novel situations, it is difficult for entrepreneurial teams to operate successfully during the first years after starting out. Previous research suggests that high levels of trust within the team can mitigate these difficulties and positively influence the relational capital that in turn is beneficial for the success of startup companies. The present study analyzes influencing variables on the relational capital dimension trust within IT startup companies in China. The results show that the innovativeness of a business idea as well as the business growth potential have a positive impact on trust within the entrepreneurial team, especially if the team consists of Chinese -- as opposed to non-Chinese -- startup founders.