THE IMPACT OF PAST PERFORMANCE ON THE EXIT OF TEAM MEMBERS IN YOUNG FIRMS: THE ROLE OF TEAM COMPOSITION

Abstract

We investigate the impact of past performance and team composition on exits of members from entrepreneurial teams. Not only does the homophily principle guide team formation, but it also seems to drive exits from teams. Our findings suggest that greater internal diversity along some but not all demographic dimensions is positively associated with a higher rate of team member exits. At the individual level, we find that the more individuals deviate from the norm in terms of age, the more likely they are to leave a team.

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