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Entrepreneurial team diversity and start-up growth in consulting and hospitality

Author

Listed:
  • Rui Baptista
  • António Sérgio Ribeiro
  • Syeda Nimra Batool
  • Cheng-Feng Cheng
  • Sascha Kraus

Abstract

This study examines how human capital diversity in entrepreneurial teams relates to new venture growth in two distinct service industries: hospitality and knowledge-based consultancy. Drawing on longitudinal linked employer-employee data from Portugal, we use large representative samples of start-ups founded and managed by entrepreneurial dyads to identify configurations of team members’ human capital resources linked to high venture growth. We find that high-growth entrepreneurial dyads are strongly homogeneous in hospitality but rather more diverse in knowledge-based consulting. We propose that differences in successful entrepreneurial teams across these sectors are likely associated with industry context concerning human capital requirements and environmental uncertainty: while team homogeneity succeeds in the relatively stable environment of hospitality services, volatility in knowledge-based consulting favors greater diversity.

Suggested Citation

  • Rui Baptista & António Sérgio Ribeiro & Syeda Nimra Batool & Cheng-Feng Cheng & Sascha Kraus, 2024. "Entrepreneurial team diversity and start-up growth in consulting and hospitality," The Service Industries Journal, Taylor & Francis Journals, vol. 44(13-14), pages 1038-1060, October.
  • Handle: RePEc:taf:servic:v:44:y:2024:i:13-14:p:1038-1060
    DOI: 10.1080/02642069.2022.2138357
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