Top management team restructuring in pre-IPO high technology startups: The influence of TMT characteristics and firm growth

This study examines the influence of TMT (top management team) characteristics and firm growth on pre-IPO management team restructuring. Using a sample of U.S. biotechnology startups which went public between 1991 and 1999, the empirical results show that TMT tenure, TMT founder percentage, and TMT functional heterogeneity are negatively associated with management team restructuring in pre-IPO technology ventures. Further, the impact of TMT tenure and TMT functional heterogeneity on pre-IPO management team restructuring is stronger when firm growth is high than when it is low. The study extends understanding of pre-IPO management team restructuring and contributes to research on managerial turnover, new venture teams, and IPO firms.