Influence of Founder—CEOs' Personal Values on Firm Performance: Moderating Effects of Firm Age and Size†

The effects of two values held by founder—CEOs (collectivism and novelty) on companies' post—start-up performance are investigated. By integrating congruence and organizational lifecycle literatures, the authors hypothesized that the effects of both values are moderated by company age and size, such that collectivism exerts stronger beneficial effects in older and larger firms, whereas novelty exerts stronger beneficial effects in younger and smaller firms. Results based on 92 small- to medium-sized enterprises offer support for most predictions, thus demonstrating the influence of founders' values on new venture performance and highlighting the importance of considering organizational lifecycle for the understanding of this influence.