Team composition of new venture founding teams: does personality matter?

Abstract

Purpose– First, using the task-relationship dichotomy as a framework, the purpose of this paper is to examine the direct effects of team personality level and team personality diversity on new venture growth. Second, the study examines the interaction effects of team personality level and diversity on venture growth.Design/methodology/approach– The sample consisted of 154 teams in a technology incubator in China. Data were collected through an online survey.Findings– Results indicate that high level but low diversity of team task-oriented personality was beneficial for new venture founding teams. Diversity of team task-oriented personality would hurt the new venture growth more when the level of task-oriented personality was low. Relationship-oriented personality diversity, but not the level of relationship-oriented personality, influenced new venture growth.Research limitations/implications– These findings advance research in entrepreneurship, groups, and teams, and provide practical policy implications as well.Practical implications– This study provides practical implications for policy makers regarding what supports should be provided in incubators and for entrepreneurs regarding team member selection.Originality/value– This is one of the first papers to study the personality composition of new venture founding teams.