When members of entrepreneurial teams differ: linking diversity in individual-level entrepreneurial orientation to team performance

Abstract

While prior research has focused on differences in entrepreneurial orientation between organizations, we direct attention to differences in entrepreneurial orientation within organizations. We propose that individual members in entrepreneurial teams may differ in their dispositions to act in entrepreneurial ways, that is, in their individual entrepreneurial orientation (iEO) and that these differences have meaningful implications for team performance. Drawing upon research in team diversity and entrepreneurial orientation, we argue that the three iEO diversity dimensions—proactiveness, risk taking, and innovativeness diversity—affect team outcomes in different ways, although they belong to the same diversity type and even belong to a common superordinate construct. Empirical data gathered in 104 dyadic entrepreneurial teams supports our theory: Diversity in proactiveness within a team impairs team performance. Risk-taking diversity also harms team performance by heightening relationship conflict. However, innovativeness diversity facilitates team performance. The present study contributes to two streams of research, namely, entrepreneurial team research and research on entrepreneurial orientation and is of practical significance to entrepreneurial team formation and performance.