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Biography & Abstract
Andrea Herrmann

Andrea is Professor of Sustainable Innovation and Entrepreneurship at Radboud University, Faculty of Nijmegen School of Management, Netherlands. Previously she worked at Utrecht University and was a Marie Curie research fellow at Columbia University.

What Makes Team Gig Entrepreneurs Successful?

The rise of the ‘gig economy’ has led to a new form of entrepreneurship: ‘team gig entrepreneurs’, where freelancers collaborate on online platforms for one-time tasks (so-called ‘gigs’). Existing research on the gig economy often focuses on individual freelancers and their precarious working conditions. However, given that these team entrepreneurs often rank amongst the most hired and best rated gig providers, the question arises: what are the key factors prompting gig workers to form a team, and what factors contribute to the greater success of team gig entrepreneurs compared to their individual counterparts? Existing research into entrepreneurship and the gig economy emphasizes skills as a key factor of team success. The gig literature also underscores the importance of signals in the online labor markets. Nevertheless, the drivers of the success of team gig entrepreneurs remain elusive regarding what type of skill sets or entrepreneurial characteristics drive the greater success of teams. Our research addresses this gap by building on the existing literature on the skill characteristics of entrepreneurial teams and incorporating signalling theory to identify the indicators that gig freelancers utilize to signal their competence. Based on a dataset of 85,639 gig freelancers on a major global online platform, we combine binary logit analyses with ordinary least-square regression. Our analyses challenge the prevailing literature by revealing that the mix of skills benefits both solo and team gig workers equally. By suggesting that the limited investment and transaction costs within the gig economy change the skills that make team entrepreneurs successful, our findings shed new light on the drivers of labour market success in the online gig economy.

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