Abstract
Family relationships play an important role in entrepreneurial teams of new ventures. We examine two different types of family relationships in entrepreneurial teams: (1) close kinship ties and (2) distant kinship ties. Specifically, integrating insight from research on evolutionary psychology theory with research on socioemotional wealth, we analyze the impact of these family ties on the success of new ventures. Our empirical results, based on a sample of 317 new ventures, suggest that while close kinship ties in entrepreneurial teams have a negative effect on new venture success, distant kinship ties have a positive effect. Both of these effects are less pronounced in case of high founder ownership or in case of high initial financial resources. We contribute to the entrepreneurship literature by providing a broader but yet more precise understanding of the construct “family” as well as new insight for the varying effects of different family relationships on firm success. Moreover, we introduce new original theoretical frameworks on which future entrepreneurship theorizing can take place.
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