"Effects of Dyadic Co-founder Heterogeneity, Trust and Learning Interactions on ACAP and Performance"

This study explores the impact of trait heterogeneity, trust and learning interactions of new venture co-founder/partner dyads (“Trusted Partners”) upon firm level absorptive capacity (exploitative and exploratory), innovativeness and firm performance. The study focuses on two dimensions of trait heterogeneity: the extent to which the two partners have diverse non-overlapping functional experience (Partner Functional Diversity) and breadth of combined partner functional experience (Partner Functional Breadth). I surveyed 153 technology entrepreneurs with Trusted Partners and discovered that effective partnerships more likely develop between two individuals who possess high levels of inter-personal trust combined with high functional breadth and low functional diversity. The study demonstrates how partner expertise heterogeneity detrimentally impacts the ability of partners to engage in constructive learning interactions and exploratory learning. Co-founder/partners ideally need both breadth and significan...