Diversity and Performance in Entrepreneurial Teamssop

Diversity and Performance in Entrepreneurial Teams

Sophie Calder-Wang (University of Pennsylvania)

Please note that this seminar will be held online only. You may follow the seminar at the following link.

ABSTRACT:

We study how diversity impacts entrepreneurial team performance. In a business course for building start-ups, homophily in demographic and personal backgrounds strongly drives team formation. Using random team assignments, we find racial and ethnic diversity significantly lowers performance, but this effect is greatly reduced when teams are formed voluntarily, highlighting the role of selection on unobservables. Our findings are consistent with a model where cross-racial/ethnic collaboration costs outweigh complementarity benefits, even in such complex, business-like settings. These results also suggests that policy interventions to enhance diversity should consider the process by which teams are formed to maintain productivity.

BIO:

Sophie Calder-Wang is an Assistant Professor at The Wharton School, University of Pennsylvania. Her research interests lie at the intersection of entrepreneurship, real estate, and industrial organization. Her recent research examines disruptive technologies that transform the real estate markets, such as the impact of Airbnb on housing market participants and the impact of algorithmic pricing in multi-family rentals. Her additional research stream explores diversity and equity issues in venture capital, investigating sources and implications of gender and racial biases in entrepreneurship. Prof. Calder-Wang received her Ph.D. in economics from Harvard University and an undergraduate degree in mathematics from Princeton University.