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Book part
Publication date: 22 September 2022

David R. Clough and Balagopal Vissa

We advance entrepreneurship research by developing a theoretical model of how founding teams form. Our neo-Carnegie model situates nascent founders in particular

Abstract

We advance entrepreneurship research by developing a theoretical model of how founding teams form. Our neo-Carnegie model situates nascent founders in particular network-structural milieus, engaging in aspiration-driven search for and evaluation of prospective co-founders. The formation of co-founding ties between nascent founders can be divided into four theoretical steps, which we label activation, evaluation, approach, and reciprocation. Successful founding team formation is a consequence of mutually favorable evaluations by nascent founders in a multi-sided matching process. Nascent founders with higher and less flexible aspirations are more likely to undertake distant search for co-founders by seeking referrals, forming ties with strangers, and forming new ties to social foci where they might meet potential co-founders. Churn in newly formed founding teams emerges as a consequence of shifting dominant coalition dynamics in the founding team caused by organic venture evolution and intentional changes in strategic direction. Our theoretical model provides new insights on the formation pathways of founding teams, their initial task and relational resource endowments, and initial team dynamics.

Details

Entrepreneurialism and Society: Consequences and Meanings
Type: Book
ISBN: 978-1-80382-662-2

Keywords

Open Access
Article
Publication date: 14 June 2018

Jun Li and Dev K. Dutta

The purpose of this paper is to examine the role of founding team experience (industry and venturing) in new venture creation. This paper posits the following questions…

3585

Abstract

Purpose

The purpose of this paper is to examine the role of founding team experience (industry and venturing) in new venture creation. This paper posits the following questions: How does founding team experience influence the likelihood of new venture creation, in the nascent stage? How does industry context moderate this relationship? The study aims to fill an important gap in the literature by unpacking the impact of different types of founding team experiences on venture outcome, and by focusing on the influence of founding team in the venture creation process, specifically at the nascent stage.

Design/methodology/approach

The paper utilizes data from the Second Panel Study of Entrepreneurial Dynamics, a longitudinal data set of 1,214 nascent entrepreneurs in the USA. Logistics regression was employed to analyze the effect of founding team experience on new venture creation. Post hoc analysis was conducted to ensure the confidence of the findings.

Findings

The paper provides empirical insights about how founding team experience influences the likelihood of new venture creation in the nascent stage. At the nascent stage, founding team industry experience positively affects new venture creation while founding team venturing experience does not. However, in the high-technology industry environment, the influence of the founding team’s venturing experience on new venture creation is stronger than that in the low-technology industry environment.

Research limitations/implications

Due to the design of the data set, there is a risk of “right-censoring” problem. Also, because the study used archival data on founding teams, the methodology did not allow for uncovering the underlying team processes and dynamics during the venture creation process based on learning from experience. Future studies are encouraged to examine other types of founding team experience and the underlying process-level factors on venture creation.

Practical implications

The paper provides important practical implications for nascent entrepreneurs/entrepreneurial teams on team assembling and composition. In general, a team with higher-level industry experience is critical for venturing success. A team with higher-level venturing experience is more desired in the high-technology industry.

Originality/value

This paper fulfills an important gap in the entrepreneurial team literature by highlighting the complex and nuanced ways in which founding team experience influences the likelihood of venture creation in the nascent stage of the firm, especially after incorporating the additional impact of the industry context.

Details

New England Journal of Entrepreneurship, vol. 21 no. 1
Type: Research Article
ISSN: 2574-8904

Keywords

Article
Publication date: 24 April 2009

Myleen M. Leary and Michael L. DeVaughn

The purpose of this paper is to identify the characteristics of an entrepreneurial team that influence the likelihood a new venture will successfully launch.

3097

Abstract

Purpose

The purpose of this paper is to identify the characteristics of an entrepreneurial team that influence the likelihood a new venture will successfully launch.

Design/methodology/approach

This paper uses a sample of prospective start‐up banks that applied for a charter application in Florida between 1996 and 2005. Logistic regression was used to test the hypotheses.

Findings

Analysis suggests that entrepreneurial teams where: the CEO is strongly embedded into the team; no team member holds 10 per cent or more of the firm's total equity; team members have less rather than more industry experience; and more team members have prior founding experience, all point to a successful new venture launch.

Research limitations/implications

This study focuses on start‐up success in a single industry and thus may not be generalizable to other research contexts.

Practical implications

Results suggest that bank regulators in charge approving new bank charters would be well advised to revisit their guidelines and recommendations for prospective new bank founders.

Originality/value

Given the unique regulatory requirements of the US banking industry, the successful as well as failed efforts to launch a new bank can be identified and the “success bias” present in many entrepreneurship studies can be averted.

Details

Management Research News, vol. 32 no. 6
Type: Research Article
ISSN: 0140-9174

Keywords

Article
Publication date: 12 August 2020

Jonas Debrulle, Johan Maes and Elliroma Gardiner

The purpose of this paper is to contribute to understanding the impact of entrepreneurial team composition on new venture performance. Different types of entrepreneurship…

743

Abstract

Purpose

The purpose of this paper is to contribute to understanding the impact of entrepreneurial team composition on new venture performance. Different types of entrepreneurship motivation among founding team members are defined. Using a relatively recent theory as a framework (i.e. self-determination theory), the authors group these motives into two categories: autonomous and controlled motivation. The business impact of the level of each type of motivation within the team, as well as the impact of having team members with different motivational drivers, is examined. New venture performance is modelled in two different ways: financial performance (i.e. return on assets) and innovation performance.

Design/methodology/approach

The analyses are based on 66 founding teams active in diverse activity sectors. The teams represent a total of 142 business founders. Data was collected through structured interviews, a company questionnaire and a secondary data source (i.e. certified financial statements).

Findings

The results confirm that the level of autonomous motivation within the team contributes to start-up financial performance, whereas the level of controlled motivation hampers innovation performance. No direct effects of diversity of team member motivation on start-up performance were discovered.

Originality/value

This is one of the first papers to study multiple firm performance effects of the composition of entrepreneurial founding teams in terms of motivation.

Details

Journal of Business Strategy, vol. 42 no. 6
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 3 August 2021

David Noack, Douglas R. Miller and Rebecca Guidice

This paper brings in relevant entrepreneurial behavior theory to understand the ownership decisions founders make during the nascent stage of new venture creation, and how…

Abstract

Purpose

This paper brings in relevant entrepreneurial behavior theory to understand the ownership decisions founders make during the nascent stage of new venture creation, and how such decisions impact the viability of the firm.

Design/methodology/approach

The authors examine the behavior and decision making of 137 lead founders during the nascent stage of new venture creation. Psychological ownership and environmental uncertainty are measured of lead founders when dividing up firm ownership among the founding team. Using a longitudinal approach, these nascent-stage decisions are then analyzed to understand the impact on the new venture one year later.

Findings

Counter to prior research suggesting teams are better off with identical wages and ownership, the authors find such harmony (i.e. “kumbaya”) pursuit to be a detriment to new venture emergence. Specifically, this study finds that nascent ventures are better off with an unequal ownership split among the founding team members. These findings suggest that nascent firms with an unequal split are more likely to move beyond the nascent stage and launch a functional business.

Research limitations/implications

Although the results of this study offer a valuable contribution to lead founders and new businesses, the study looked at each startup independent of another and is therefore not able to draw any conclusions related to competitiveness.

Practical implications

Lead founders and founding teams frequently divide ownership evenly among the founders. This paper shows that, while convenient, the decision to divide ownership equally can hamper a nascent firm as it moves toward the launch phase of the startup process. These results should motivate founders to think deeply regarding the ownership structure decision and, at the very least, consider the possible negative costs associated with the pursuit of founding team unity.

Originality/value

While scholars have brought attention to the nascent stage, few have identified and analyzed the decisions that take place during this critical time of the new venture development process. Furthermore, even is less is known of the impact nascent decisions have on startup launch. This study sheds light on these areas.

Details

Journal of Small Business and Enterprise Development, vol. 28 no. 7
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 17 May 2022

Willy Das and Satyasiba Das

The purpose of this paper is to investigate and compare what criteria novice and habitual entrepreneurs use while adding members to the founding team.

Abstract

Purpose

The purpose of this paper is to investigate and compare what criteria novice and habitual entrepreneurs use while adding members to the founding team.

Design/methodology/approach

This paper uses conjoint analysis (CA) to provide the order of preference for the “choice attributes.” The logic of CA is that even if two or more attributes influence the choice, it is unlikely that those attributes will have equal importance for founders with different entrepreneurial experiences.

Findings

This paper found a significant difference in the ranking of the attributes by novice and habitual entrepreneurs. In novice entrepreneurs, the effect of direct ties in the form of kinship ties has the highest preference, followed by prior social contact and prior work relations. However, personal friendships and resource dependency received lesser importance than interpersonal attraction because of the similarity in vision, beliefs and values. Habitual entrepreneurs, however, valued resource dependency and prior work relations more than kinship ties. Also, unlike novice entrepreneurs, habitual entrepreneurs sought cofounders from their indirect ties.

Practical implications

There has been an explosion of interest and funding for programs that help entrepreneurs establish a cofounding team. The authors inform these programs related to the decision concerning assisting novice and habitual entrepreneurs.

Originality/value

While prior studies examined a single attribute at a time, the strength of this study lies in simultaneously tapping all attributes, along with multiple indicators for each attribute. Additionally, this study distinguishes the selection criteria of cofounders based on the entrepreneurial expertise of the lead founder.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Book part
Publication date: 24 November 2021

Cyrine Ben-Hafaïedh and Frédéric Dufays

Purpose: Entrepreneurial teams are one of the most crystallized forms of collaboration in the generically collective dynamics underpinning social entrepreneurship. Despite…

Abstract

Purpose: Entrepreneurial teams are one of the most crystallized forms of collaboration in the generically collective dynamics underpinning social entrepreneurship. Despite their quantitative prevalence, social entrepreneurial teams (SETs) remain quite absent from the scholarly literature. This chapter aims to develop a research agenda addressing this gap. Methodology/Approach: This chapter first reviews the scarce literature dealing with this subject and develops an operationalizable definition of SETs. Next, it confronts current knowledge on entrepreneurial teams with the specific context of social entrepreneurship to introduce and discuss main topics of investigation on SETs. Findings: Six topics are suggested to have a high potential for developing knowledge on SETs: formation, size and extended team, gender, decision-making and leadership, identity, and turnover. Research Implications: This chapter frames these research avenues within a developmental stages perspective with the aim to contribute to help form and maintain effective SETs. Originality/Value of Chapter: This research has implications for scholars as it defines SETs as a distinct object for research, which allows extending knowledge on collaborative dynamics in social entrepreneurship, but also on entrepreneurial teams in general. The suggested research agenda and its orientation toward the development of effective SETs should be a springboard for future research on this subject.

Book part
Publication date: 8 December 2006

Peter Johnson

Abstract

Details

Astute Competition
Type: Book
ISBN: 978-0-08045-321-7

Article
Publication date: 30 June 2021

Willy Das, Satyasiba Das and Manojit Chattopadhyay

The purpose of this paper is to review and critique the existing literature on entrepreneurial teams (ET) by taking a multi-disciplinary viewpoint and provide a future…

Abstract

Purpose

The purpose of this paper is to review and critique the existing literature on entrepreneurial teams (ET) by taking a multi-disciplinary viewpoint and provide a future research agenda based on the identified themes and trends.

Design/methodology/approach

A systematic literature review (SLR) was undertaken using “business source complete”. Further scrutiny and application of exclusion criteria led to a final sample consisting of 139 papers from 27 different journals belonging to not just entrepreneurship and strategic management but also other disciplines like OB, finance, sociology, psychology, etc. Using qualitative thematic analysis, the authors identified 11 major themes.

Findings

The paper reviews both the eleven themes and the linkages between the themes. Thereby identifying areas that have been understudied and those that have received comparatively more attention. The review revealed that the research stream possesses certain conceptual and methodological concerns apart from its cross-sectional and primarily bivariate nature. Five such main concerns have been identified and discussed in detail. Other elements of the resulting research agenda include calls for more clinical process-oriented research, further attention to context, shifting the level of analysis, and a need to integrate across disciplines.

Originality/value

This paper incorporates a broad insight of ET across academic disciplines to show how future contributions could benefit by incorporating research from other fields. In doing so, provides a starting point for more nuanced discussions around the interrelationships between the different conversations that are taking place in the ET literature.

Details

Journal of Small Business and Enterprise Development, vol. 28 no. 6
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 7 June 2021

Qingyan Ye, Duanxu Wang and Kai Zeng

Employee entrepreneurship has recently become an emerging area of investigation. However, due to the fragmentation of the turnover and entrepreneurship literature, no…

Abstract

Purpose

Employee entrepreneurship has recently become an emerging area of investigation. However, due to the fragmentation of the turnover and entrepreneurship literature, no coherent theoretical framework has been developed to provide an adequate description of the employee entrepreneurial process. The purpose of this paper is to gain a deeper understanding of why and how an employee in an established organization progresses toward starting a new venture by exploring the key decision-making processes during the initial stages of employee entrepreneurship.

Design/methodology/approach

This study addresses the following research questions: What are the key decision-making processes during the initial stages of employee entrepreneurship? How are these decisions made, and how do they interact? This study employed a multiple case study approach, which enabled the authors to gain valuable insight into these “what” and “how” questions. The data consist of 28 in-depth employee entrepreneurship cases.

Findings

Based on an in-depth study of 28 cases, this study constructs a comprehensive model of the dynamic and interactive decision-making processes that lead to employee entrepreneurship. In particular, the findings reveal that rather than being a linear staged activity, employee entrepreneurship is an inherently iterative process that involves a set of interrelated subdecision-making processes related to turnover, team entrepreneurship and partner recruitment that entail multiple iterations and feedback loops based on an individual's cognitive judgment.

Originality/value

By illustrating and clarifying the importance of the effects of different initial motivations and the attributes of the network in the course of the employee entrepreneurship decision-making process, this study integrates the turnover and entrepreneurship literature and makes significant contributions to the current literature on employee entrepreneurship. Moreover, this study complements research investigating entrepreneurial team formation by providing a detailed understanding of how the lead entrepreneur and the prospective partner make mutual choices during the entrepreneurial team formation process.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 6
Type: Research Article
ISSN: 1355-2554

Keywords

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