LAUSR

ABSTRACT This study examines how learning behaviors in new ventures lead to innovation. Mediation analysis of the relationships between individual co-founders’ learning behaviors, firm-level exploration/exploitation learning activities, and innovation suggests a complex view about how firm-level knowledge emerges. The results show that individual learning behaviors of entrepreneurs impact firm-level exploratory and exploitative learning activities, and indirectly affect firm innovation. Co-founder trust strongly predicts entrepreneurial learning activities and firm-level learning activities. Unexpectedly, co-founder experience heterogeneity reflecting prior knowledge has mixed effects on learning behaviors and innovation activities. The research draws on technology entrepreneurs who started their firms with trusted co-founders.