Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • 2017
  • Working Paper
  • HBS Working Paper Series

Homophily in Entrepreneurial Team Formation

By: Paul A. Gompers, Kevin Huang and Sophie Q. Wang
  • Format:Print
  • | Language:English
  • | Pages:53
ShareBar

Abstract

We study the role of homophily in group formation. Using a unique dataset of MBA students, we observe homophily in ethnicity and gender increases the probability of forming teams by 25%. Homophily in education and past working experience increases the probability of forming teams by 17% and 11 % respectively. Homophily in education and working experience is stronger among males than females. Further, we examine the causal impact of homophily on team performance. Homophily in ethnicity increases team performance by lifting teams in bottom quantiles to median performance quantiles, but it does not increase the chance of being top performers. Our findings have implications for understanding the lack of diversity in entrepreneurship and the venture capital industry.

Keywords

Groups and Teams; Diversity; Familiarity; Entrepreneurship; Venture Capital; Performance

Citation

Gompers, Paul A., Kevin Huang, and Sophie Q. Wang. "Homophily in Entrepreneurial Team Formation." Harvard Business School Working Paper, No. 17-104, May 2017.
  • SSRN
  • Read Now

About The Author

Paul A. Gompers

Entrepreneurial Management
→More Publications

More from the Authors

    • March 2025
    • Faculty Research

    Mobvoi's Path Through Market Challenges and Business Reinvention

    By: Paul A. Gompers and Shu Lin
    • March 14, 2025
    • Harvard Crimson

    Harvard Students Should Ignore Calls to Boycott Israel Trek

    By: Jesse M. Fried, Paul A. Gompers, Scott Kominers and Mark C. Poznansky
    • November 2024
    • Faculty Research

    Grab Returns: Riding the SPAC-tacular Highway?

    By: Paul Gompers, Graham Blanks and Sachin Srivastava
More from the Authors
  • Mobvoi's Path Through Market Challenges and Business Reinvention By: Paul A. Gompers and Shu Lin
  • Harvard Students Should Ignore Calls to Boycott Israel Trek By: Jesse M. Fried, Paul A. Gompers, Scott Kominers and Mark C. Poznansky
  • Grab Returns: Riding the SPAC-tacular Highway? By: Paul Gompers, Graham Blanks and Sachin Srivastava
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.