Associate Professor of Entrepreneurship
Journal Article | Strategic Management Journal | 30 | November 2009
Leveraging Ties: The Contingent Value of Entrepreneurial Teams' External Advice Networks on Indian Software Venture Performance
This study investigates the impact of entrepreneurial teams’ external networks on their ventures’ performance.The authors first argue that ventures whose entrepreneurial teams span many structural holes in their external advice networks experience higher performance. The authors then propose that network ties are not uniform in their effect, but rather are contingent on two distinct features of entrepreneurial teams: (i) their strategic consensus – extent of agreement on key goals and strategies within the team and (ii) internal cohesion - extent of interpersonal friendships within the team.Finally, the authors propose that team demographics and team networks complement (rather than substitute) each other. Data from Indian software ventures provide support for these arguments.The authors extend entrepreneurship research by highlighting how venture teams’ internal processes and external networks jointly shape performance outcomes.The authors also add to the literature on team networks by drawing attention to the role of strategic consensus as a distinct pathway through which teams can leverage their external networks.