Funding ventures similar to one of us: How status dynamics within heterogeneous groups affect venture evaluation

• 成果类型: Article
• 署名作者: Shen, Xirong (Subrina); Kim, Heeyon; Li, Jizhen
• 署名单位: University of Texas System; University of Texas Austin; Tsinghua University
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.3400
• 发表日期: 2022
• 页码: 2135-2155
• 关键词: entrepreneurial resource mobilization; judgment under uncertainty; similarity bias; status dynamics; venture evaluation

摘要

Research Summary We examine how status dynamics in heterogeneous evaluator groups affect the evaluation of a target venture where some evaluators resemble the venture team while some do not. Using data from a funding competition in China, we theorize and empirically show that the emergence of a status hierarchy among evaluator group members based on top-university affiliation leads non-top-university members to favor top-university venture teams by (a) increasing the visibility and positive value of top-university affiliation as a quality signal and (b) suppressing challenging questions directed at top-university teams. By introducing small group status dynamics as an explanation for similarity bias in venture evaluation, we contribute to the literature on resource mobilization in early-stage entrepreneurship. Managerial Summary Despite the wide use of heterogeneous teams in venture evaluation, similarity bias-a preference for venture teams that resemble the members of an evaluation group-is still prevalent. This study shows that, under certain conditions, heterogeneous evaluation teams might not be a solution for similarity bias. We identify a group-level source of similarity bias-the emergence of a status hierarchy among evaluators based on affiliation with top universities-which makes top-university affiliation a more salient and positive quality signal in venture evaluation, particularly for evaluators who are not affiliated with top universities.