Founding team and start‐up competitive advantage

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.

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