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Founding team and start‐up competitive advantage

Lei‐Yu Wu (National Chengchi University, Taipei, Taiwan, Republic of China)
Chun‐Ju Wang (Ming Chuan University, Taipei, Taiwan, Republic of China)
Chun‐Yao Tseng (Tunghai University, Taichung, Taiwan, Republic of China)
Ming‐Cheng Wu (National Changhua University of Education, Changhua, Taiwan, Republic of China)

International Journal of Organizational Analysis

ISSN: 1934-8835

Publication date: 4 July 2008

Abstract

Purpose

The purpose of this paper is to develop a framework to link founding team and start‐up competitive advantage in the context of the Taiwanese technology‐based ventures.

Design/methodology/approach

The paper analyzes 211 start‐ups of the technology‐based sector and verifies the relationship between entrepreneur resources, trust, founding team partners' commitments, and start‐up competitive advantage.

Findings

In technology‐based start‐ups, the competitive advantage of a start‐up is determined by the founding team partners' commitments and the resources an entrepreneur has.

Research limitations/implications

This study is retrospective which relies on technology‐based founding team members as the primary research subjects, some respondents may observe the performance of their start‐ups today and then make attributions about the past to explain that performance.

Practical implications

Utilizations of personal networks are important in the early stage of technology‐based start‐ups; through networking and using trust, an entrepreneur can gain the critical resources and competitive advantage required in the development of a business.

Originality/value

In technology‐based start‐ups, trust, not the resources an entrepreneur has, is an effective way by which entrepreneurs can win founding team partners' commitments.

Keywords

Citation

Wu, L., Wang, C., Tseng, C. and Wu, M. (2008), "Founding team and start‐up competitive advantage", International Journal of Organizational Analysis, Vol. 16 No. 1/2, pp. 138-151. https://doi.org/10.1108/19348830810915532

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited