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Are we really a good match? A multilevel model of relational uncertainty in entrepreneurial teams

Subject Area Accounting and Finance
Term from 2016 to 2020
Project identifier Deutsche Forschungsgemeinschaft (DFG) - Project number 315285228
 
Final Report Year 2020

Final Report Abstract

Many high-growth ventures are founded by entrepreneurial teams. One of the biggest challenges of such teams is the “forging and maintaining [of] productive working relationship[s]” (Blatt, 2009). However, the relationships and work dynamics within entrepreneurial teams are still not sufficiently understood. Hence, in this research project, we pursued two main project goals. In the first step, it was our aim to gain deeper insights into the ‘people side’ of entrepreneurship by studying the relationships among entrepreneurial team members, as these teams represent the basis of most growth-oriented ventures. In a second step, we further investigated the work dynamics within the entrepreneurial team. The project was composed of several subtopics – connecting different aspects of entrepreneurial team membership – and addressed the two defined objectives. The primary research method was an inductive theory building approach using multiple cases, but we also worked on literature reviews and a longitudinal survey study. The main insight of the overall project was the need to re-think the impact of the relationships in entrepreneurial teams since these relationships indeed play a significant role in venturing and are more complex and dynamic than expected. Specifically, our findings revealed, first, that entrepreneurial team members are likely to experience some facet of interpersonal uncertainty with respect to their teammates – regardless of the prior ties and team tenure. While some teams are able to leverage this uncertainty by adopting specific measures improving teamwork, some teams seem to break up because of this uncertainty. Second, we find empirically that entrepreneurial team members initiate hybrid relationships – incorporating aspects of friendship and exchange-based business partnering – when starting a venture together. Third, our findings challenge prior research suggesting structured approaches to organizing work in entrepreneurial teams. Instead, our work reveals how creating open spaces – spaces that are not created with a specific topic or goal in mind – can enable entrepreneurial teams to implement feedback and thus adapt their venture ideas. Finally, our study on effort contagion challenges the widely held assumption that the entrepreneurial team context is per se motivating for entrepreneurs. Importantly, we theorize and find that external threats are needed to trigger effort contagion in entrepreneurial teams.

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