Management Review ›› 2023, Vol. 35 ›› Issue (8): 144-156.

• Innovation and Entrepreneurship Management • Previous Articles     Next Articles

New Venture Team Faultline and Business Model Innovation——Empirical Evidence from CPSED Ⅱ Database

Han Wei, Song Lang   

  1. School of Business, Southwest University of Political Science & Law, Chongqing 401120
  • Received:2021-11-30 Online:2023-08-28 Published:2023-10-07

Abstract: Business model innovation is an important way for new ventures to gain competitive advantages. However, it remains unclear how the "faultline" structure of new venture teams affects business model innovation. By using Chinese Panel Study of Entrepreneurial Development (CPSED Ⅱ), based on the theory of social classification and knowledge based theory, this paper analyses how relationship related faultline strength and task related faultline strength of new venture teams affect efficiency-centered business model innovation, and then discusses the moderating effect of faultline distance. It is found that new venture teams with strong relationship related faultlines are less inclined to make efficiency-centered business model innovation, and new venture teams with strong task related faultlines are more inclined to make efficiency-centered business model innovation. Faultline distance positively moderates the above relationship. This study expands the research on the result effect of team faultline, enriches the mining of incentives for business model innovation, and explores the theoretical boundary of team faultline from the perspective of effect "activation".

Key words: business model innovation, new venture team, faultline strength, faultline distance