Entrepreneurs’ Cognitive Ability and New Ventures’ Performance

Ali Mohammadi, Kourosh Shafi

Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review


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 languageEnglish
Title of host publicationProceedings of the Eightieth Annual Meeting of the Academy of Management
EditorsGuclu Atinc
Number of pages1
Place of PublicationBriarcliff Manor, NY
PublisherAcademy of Management
Publication date2020
Publication statusPublished - 2020
EventThe Academy of Management Annual Meeting 2020: Broadening Our Sight - Virtual
Duration: 7 Aug 202011 Aug 2020
Conference number: 80


ConferenceThe Academy of Management Annual Meeting 2020
Internet address
SeriesAcademy of Management Proceedings

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