Assessing the relationship between human capital and firm performance: Evidence from technology-based new ventures

We assess the role of human capital in the growth and development of new technology-based ventures, based on longitudinal data from 198 high-tech ventures. Our empirical results imply that there is a strong relationship between team experience and strategy. Although there is a weak direct link between team experience and venture performance, the findings strongly suggest that the fit between strategy and team experience is a key determinant of the long-term performance of high-tech entrepreneurial ventures. For small, technology-based new ventures, the team's technological experience appears to be the most important determinant of the success of a differentiation strategy.