UC Davis

How does career boundary-crossing affect an entrepreneur’s new venture?  When entrepreneurs cross industry or functional boundaries to lead startups, they may lack specific experience needed for performance.  Conversely, the diverse experiences they carry can enhance exploration and lead to the emergence of innovation in startups.  We highlight important consequences of career boundary-crossing, using a multi-industry longitudinal sample of high-technology firms.  We find that entrepreneurs who cross functional boundaries are more likely to lead their startups into new product areas.  We also find that entrepreneurs’ industry boundary-crossing is associated with startup failure, but it also increases the probability of an IPO.