Competitive moves in new high-tech firms: The role of board heterogeneity and family ties

Drawing on the entrepreneurial theory of the firm with dispersed knowledge, together with fundamental uncertainty, we examine what we label as heterogenous expectations through board members' imaginative faculties. Specifically, we unpack how outside board members construct heterogeneity, and how heterogenous expectations affect the level of competitive moves in new high-tech firms. We hypothesize and find that family funding positively moderates the relationship between board heterogeneity and competitive moves, although family sponsorship in the form of funding has a direct negative effect. Implications for the entrepreneurial theory of the firm and its relevance to practice are discussed.