Understanding the Dynamics of New Venture Top Management Teams: Cohesion, Conflict, and New Venture Performance

Posted: 24 Nov 2009

See all articles by Michael D. Ensley

Michael D. Ensley

Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology

Allison W Pearson

Mississippi State University

Allen C. Amason

University of Georgia - Department of Management

Date Written: 2002

Abstract

The success of a new venture usually depends upon whether team members can amalgamate effectively without losing their creative diversity. The use of conflict is central to this effort to combine talent and ability into an integrated whole. Although conflict can cause animosity and resentment, it can also be a catalyst for creative thinking and understanding. Effective teams utilize the benefits of conflict while avoiding its potential negative impact. The effects of cohesion on cognitive and affective conflict were examined. Data were gathered via surveys from the top management teams (TMTs) of 70 new ventures which were members of the 1995 Inc. 500, including 192 managers. Cohesion, conflict, firm performance, and profitability were measured. Findings indicated that TMT cohesion was negatively related to affective conflict and positively related to cognitive conflict. TMT cohesion is positively related to new venture growth. (SFL)

Keywords: Experimental/primary research, Cohesion, Firm performance, Conflict management, Firm growth, Management teams, Earnings

Suggested Citation

Ensley, Michael D. and Pearson, Allison W and Amason, Allen C., Understanding the Dynamics of New Venture Top Management Teams: Cohesion, Conflict, and New Venture Performance (2002). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1510998

Michael D. Ensley

Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology ( email )

110 8th St
Troy, NY 12180
United States

Allison W Pearson

Mississippi State University ( email )

Mississippi State, MS 39762
United States

Allen C. Amason

University of Georgia - Department of Management ( email )

Athens, GA 30602-6254
United States
706-542-3702 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
1,038
PlumX Metrics