Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1019878 | Journal of Business Venturing | 2006 | 25 Pages |
Abstract
This paper extends recent research studying biases in venture capitalist's decision making. We contribute to this literature by analyzing biases arising from similarities between a venture capitalist and members of a venture team. We summarize the psychological foundations of such similarity effects and derive a set of hypotheses regarding the impact of similarity on the assessment of team quality. Using data from a conjoint experiment with 51 respondents, we find that venture capitalists tend to favor teams that are similar to themselves in type of training and professional experience. Our results have important implications for academics and practitioners alike.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Nikolaus Franke, Marc Gruber, Dietmar Harhoff, Joachim Henkel,