Business Model Implementation of New Ventures: Linking TMT Process Antecedents, Organizational Culture, and Firm Performance

Abstract

How do top management teams (TMTs) play a role in new ventures’ business model implementation? Drawing on group process theory and the organizational culture literature, this study investigates the impact of TMT processes on new ventures’ business model implementation and how organizational culture moderates such relationships. We propose a positive effect of TMT agreement seeking but a negative effect of TMT interpersonal conflict on business model implementation. Furthermore, we theorize that the roles of these two TMT processes are contingent on organizational culture. Specifically, we posit that the benefit of TMT agreement seeking is amplified by flexibility orientation culture but reduced by control orientation culture. Conversely, the harm from TMT interpersonal conflict is weakened by the flexibility orientation culture but amplified by the control orientation culture. Using two waves of matched survey data collected from 896 TMT members in 224 Chinese new technology-based ventures, the results provide strong support for these hypotheses. Our findings yield actionable guidelines for new ventures pursuing business model implementation and superior performance.