How Lead Founder Personality Affects New Venture Performance

Abstract

This empirical study of 323 new ventures examines how task and relationship conflict in the founding top management team mediates the effect of lead founder personality on new venture performance. The results reveal that (1) openness and agreeableness increase task conflict, whereas conscientiousness decreases it, and (2) openness, extraversion, and conscientiousness decrease relationship conflict, whereas neuroticism increases it. Furthermore, task conflict increases venture performance, whereas relationship conflict decreases venture performance and weakens the positive effect of task conflict. In addition, task and relationship conflict do not mediate the effect of extraversion, and they only partially mediate the effects of openness and neuroticism on new venture performance. Openness and neuroticism exert a direct impact on new venture performance, in addition to their indirect impact through task and relationship conflict.

Personality traits and conflict management styles in predicting job performance and conflict

“…This supports the previous research and shows that personality characteristics can determine the perception of conflicts (De Jong et al, 2013). Big Five personality traits have helped in personnel selection, training and promotion, and it should be used to determine group composition, conflict management and intervention by superiors and also performance expectations and evaluations.…”

“…Research literature is, however, lacking regarding a link between conflict and performance (Rahim, 2000;Shih and Susanto, 2010). De Jong et al (2013) observed that conflict partially mediates the relationship between personality and performance. We speculate that CMSs introduced as a moderator of the conflict to performance link will explain the mediating role of conflict in the personality to performance relationship.…”

“…Personality traits affected performance directly and indirectly through conflict. If personality characteristics of these supervisors can influences their perceptions of conflict and their performance, it is more likely affecting the whole group's processes and performance (Ayoko and Konrad, 2012;De Jong et al, 2013). Group managers should recognize the influence of their own personality profile on performance and select the right persons in their group.…”

Social, Behavioral, and Cognitive Influences on Upper Echelons During Strategy Process

“…De Jong, Song, and Song (2013), for example, examines the relations among lead founder personality, task conflict, relationship conflict, and new venture performance.…”

Trust in innovation networks

“…In Part B, respondents answer questions assessing their personality traits and team climate variables that were predicted to relate to innovation (though the latter were omitted from analysis (Baer & Frese, 2003;de Jong et al, 2011;Eisenbeiss et al, 2008;Gong et al, 2012;Kim et al, 2009;Moore, 2006;Ogawa, 1998;Ohly & Fritz, 2007;Sasovova et al, 2010;Somech & Drach-Zahavy, 2011;Zhou, 2003).…”