Effects of Venture Team Demographic Characteristics on Team Interpersonal Process Effectiveness in Computer Related Venture Teams
Description: In order to remain competitive, firms must be able to merge diverse, differentiated people into teams. In comparison to solo ventures, venture teams not only offer a broader base of physical and financial resources and varying points of view, but also positively influence the profitability, growth, and survivability potential of new ventures. Despite the growing importance and potential benefits offered by venture teams, relatively little is known about assembling and maintaining effective venture teams in the field of entrepreneurship. More specifically, information is needed to understand what composition and combination of demographic characteristics of team members would contribute to the effectiveness and success of a venture team. In this study the relationship between venture team demographic characteristics and team effectiveness (which is defined in terms of the interpersonal process of venture team members in their group activities) is investigated. The demographic characteristics examined include average age, age heterogeneity, average level of education, educational background heterogeneity, gender heterogeneity, and functional background heterogeneity. A field study, involving face-to-face and telephone interviews with the venture teams is used to gather data from40 computer related venture teams in a large midwest U.S. city. The venture teams are identified through the local Chambers of Commerce, peer referrals, and library research. Information is gathered on demographics and team interpersonal process effectiveness using a pre-validated instrument. Data are analyzed using regression analysis. The results indicate that average age negatively and significantly relates with team interpersonal process effectiveness. Furthermore, average level of education positively and significantly relates with team interpersonal process effectiveness. The other demographic variables, age heterogeneity, educational background heterogeneity, gender heterogeneity, and functional background heterogeneity do not produce significant relationships.
Date: August 1996
Creator: Ochani, Manju
Partner: UNT Libraries