The dynamic and ambiguous nature of the entrepreneurial process requires new venture teams to acquire, integrate, and utilize large amounts of complex, non-routine information effectively and efficiently (Kogut & Zander, 1992). Team’s internal network structures play significant roles in the movement of both social and information resources between team members. The concept of transactive memory systems (TMS) describes a team interaction process whereby team members develop a shared understanding of each member’s individual knowledge stocks and areas of expertise (Lewis, 2003). Team members use this shared understanding to transfer and integrate each other’s diverse knowledge bases to create new knowledge, solve complex problems, and arrive at higher quality decisions (Wegner, 1991).

The present study positions TMS as a knowledge combinative capability that facilitates the transfer and combination of team resources to produce valuable team outputs (Kogut & Zander, 1992). The study draws on social capital and group-level information processing theories to develop and test an input-process-output model of entrepreneurial team performance. Specifically, the study explores the mediating effects of entrepreneurial team transactive memory systems on the relationship between entrepreneurial team networks and entrepreneurial team performance.