Abstract
Why do some newly founded ventures succeed, while others fail? To address this fundamental question in entrepreneurship field, we focus on the role of cognitive ability, and specifically how it influences selecting founding team members. We use a near-exhaustive sample of male Swedish entrepreneurs with available data on their cognitive ability. After controlling for non-cognitive ability of entrepreneurs, our results suggest that one standard deviation increase in cognitive ability of entrepreneurs is associated with about %23 increase in sales. This effect is significantly larger for entrepreneurs in high-tech industries relative to entrepreneurs in low-tech industries. This relationship is further mediated by founding team size and their collective cognitive abilities. Our study highlights dependence of new ventures’ growth on entrepreneurs’ talent to assemble high-quality founding teams."
| Original language | English |
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| Title of host publication | Proceedings of the Eightieth Annual Meeting of the Academy of Management |
| Editors | Guclu Atinc |
| Number of pages | 1 |
| Place of Publication | Briarcliff Manor, NY |
| Publisher | Academy of Management |
| Publication date | 2020 |
| DOIs | |
| Publication status | Published - 2020 |
| Event | The Academy of Management Annual Meeting 2020: Broadening Our Sight - Virtual Duration: 7 Aug 2020 → 11 Aug 2020 Conference number: 80 https://aom.org/events/annual-meeting/past-annual-meetings/2020-broadening-our-sight |
Conference
| Conference | The Academy of Management Annual Meeting 2020 |
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| Number | 80 |
| Location | Virtual |
| Period | 07/08/2020 → 11/08/2020 |
| Internet address |
| Series | Academy of Management Proceedings |
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| ISSN | 0065-0668 |