Does negative feedback impact new ventures' organizational identity? The role of founding teams' human capital and feedback source |
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| Institution: | 1. University of Oklahoma, 455 W. Lindsey DAHT 205, Norman, OK 73019, United States of America;2. Sykes College of Business, University of Tampa, 401 Kennedy Blvd, Tampa, FL 33606, United States of America;3. Martha and Spencer Love School of Business, Elon University;4. Tom Love Division of Entrepreneurship & Economic Development, OU Price College of Business, University of Oklahoma, 1003 Asp Ave., Norman, OK 73019, United States of America;1. Technical University of Munich, TUM School of Management, Arcisstr. 21, 80333 München, Germany;2. Université Libre de Bruxelles, Solvay Brussels School Economics and Management, Avenue FD Roosevelt 50, 1050 Brussels, Belgium;3. University of Oklahoma, Price College of Business, 307 W. Brooks St., Norman, OK 73069, United States;4. Mendoza College of Business, University of Notre Dame, Notre Dame, IN 46556, United States |
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| Abstract: | Although a strong organizational identity (OI) is important for venture success, the impact of negative feedback on a new venture's OI is poorly understood. Drawing on human capital theory we argue that founding teams with more founding and industry experience can more effectively defend OI after negative feedback. Using literature on intra-group bias we further theorize that these benefits of founding and industry experience are more pronounced when feedback emerges from sources external rather than internal to the venture. A multi-period research design and data on 1528 survey responses from 598 members of 81 ventures support our model. |
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