Entrepreneurial Leadership and New Ventures: Creativity in Entrepreneurial Teams

Abstract

This study tests the view that new venture's innovative capability is influenced by the interaction of a lead entrepreneur's leadership and his or her entrepreneurial team members' creativity, as measured by the creation of patents. Focusing on 112 entrepreneurial teams in Taiwan's high‐tech new ventures, the findings suggest that lead entrepreneurs who are risk‐taking, pro‐active and innovative can stimulate their entrepreneurial team members' creativity. Moreover, new venture's innovative capability can be improved by the joint contribution of higher entrepreneurial leadership and more creativity in entrepreneurial teams. The findings also imply that the contingent impact of creativity in teams on the leadership–innovation relationship needs to be considered.