Publication: Radical business model change and founder diversity : effects on venture survival.
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Date
2020-03-18
Authors
Advisor
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Gil Pechuán, Ignacio (PRESIDENTE);
Castro Campbell, Julio Orlando de (SECRETARIO);
Lapiedra Alcamí, Rafael (VOCAL);
Palacios Marqués, Daniel (VOCAL);
Arenas Sarmiento, Álvaro Enrique (VOCAL)
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IE University
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Abstract
Does radical business model change have a positive impact on venture’s survival? Does founder diversity detract or assist venture’s ability to radically change its business model? This thesis looks specifically into these research questions by analysing the effect of founder team diversity on the venture’s ability to execute successfully radical business model change. The relationship between radical business model change and venture survival has not been yet addressed in previous literature and this dissertation aims to fill this research gap. The analysis follows the call for further research into business model change and renewal (Zott and Amitt, 2010) contributing to the existing literature about business models. In addition, it furthers the new venture team research by looking at founder diversity and the effect of founder team heterogeneity in venture survival (Gruber et al., 2012). The empirical analysis carried out in this study is based on a unique sample of 583 new ventures from a US-based acceleration program and includes detailed firm and founder team characteristics of all the ventures that went through the acceleration program. Both the logistic regression and the survival analysis indicate a significant relationship between the Radical Business Model Change and the Survival variables showing that radical business model change has a positive impact on the venture’s prospects to survive. The analysis also shows an interaction effect between the founder team’s Functional Diversity and Radical Business Model Change variables indicating that increasing the functional diversity when the venture performs a radical business model change will increase the odds of failure. On the other hand, the analysis shows that a combination of generalist management knowledge and specific functional knowledge in the venture team reduces the odds of failure under a radical business model change.
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Attribution 4.0 International
School
IE Business School
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Citation
Tarazona, J. O. M. (2020). Radical business model change and founder diversity: Effects on venture survival (Doctoral dissertation, IE Universidad).