Founding Team Performance: Influences of Founding Team Diversity

Abstract

This paper explores the influences of founding team diversity on team performance. Drawing on studies in the diversity literature, this paper suggests that successful founding team formation is under the influences of actual and perceived team diversity at both surface and deep levels. It proposes that deep-level diversity among founders is not unfolded at the early stage; therefore surface-level diversity impacts outcome of team formation, a relationship moderated by interpersonal feelings. Strong interpersonal feelings stimulate founder collaboration, resulting in successful founding team formation.