Entrepreneurial Team Formation

Lazar, Moran; Miron-Spektor, Ella; Agarwal, Rajshree; Erez, Miriam; Goldfarb, Brent; Chen, Gilad

doi:10.5465/annals.2017.0131

Cited by 163 publications

(229 citation statements)

References 119 publications

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“…Moreover, given the focus on work groups and teams within pre‐existing organizations, scholars assume teams are preassigned, presumably by managers in hierarchical organizations. Accordingly, the processes through which team members are endogenously selected rather than exogenously assigned are understudied (Bell & Kozlowski, ; Lazar et al, ). The little literature that does exist, focuses on the socialization of team members once the team is already in place, but is silent on how teams are formed in the first place.…”

Section: Conceptual Backdropmentioning

confidence: 99%

“…Forbes, Borchert, Zellmer‐Bruhn, and Sapienza () and Lazar et al () review existing theories relevant to entrepreneurial team formation and document the use of either an economics lens focusing on instrumental rationality (Kamm & Nurick, ) or the social pscyhology lens focusing on similarity and interpersonal attraction (Byrne, ). The economic lens puts primacy on decision theoretic behavior wherein teams are assembled in response to resource needs through problemistic search, while the social psychology lens privileges interpersonal attraction such that shared characteristics or values drives the choice of team members (Forbes et al, ).…”

Section: Conceptual Backdropmentioning

confidence: 99%

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Jewels in the crown: Exploring the motivations and team building processes of employee entrepreneurs

Shah

Agarwal

Echambadi

2019

Strategic Management Journal

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Research Summary This study examines motivations and team building processes of employee entrepreneurs in the disk‐drive industry. Our inductive, grounded theory building approach uncovers that ringleaders—founders who spearhead spinout creation—are driven by a nonpecuniary desire to create in a fertile environment, when they encounter frictions within the parent firm. Cofounders share the desire to create, but ensure departure on good terms to retain the option of returning to paid employment as a safeguard against entrepreneurial risk. We uncover an endogenous team building process in which more successful founding teams engage in “workplace instrumentality”—creating workplaces through deliberate selection of cofounders who have complementary functional knowledge, but are similar in that they possess superior problem‐solving abilities, best‐in‐class talent, and common workplace values. Managerial Summary The paper examines the motivations and founding team building processes of individuals who leave existing firms to create new ventures. In contrast to conventional wisdom that suggests preformed teams working on innovation projects leave together, we find founding teams are created when a “ringleader” chooses to venture out and subsequently seeks out cofounders. Ringleaders and cofounders alike are motivated by a desire to create given fertile opportunities and care deeply about equity, but ringleaders additionally experience at least one organizational push factor. Almost all founding teams are created to ensure the presence of complementary, functional knowledge. However, more successful spinouts also select cofounders who are hands on problem‐solvers, best‐in‐class talent, and who share common workplace values.

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Section: Conceptual Backdropmentioning

confidence: 99%

Section: Conceptual Backdropmentioning

confidence: 99%

Jewels in the crown: Exploring the motivations and team building processes of employee entrepreneurs

Shah

Agarwal

Echambadi

2019

Strategic Management Journal

Self Cite

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“…Separately, literature streams on founding and TMT link team characteristics and processes to firm performance, including growth (DeSantola & Gulati, ; Lazar et al, ). Here, scholars particularly highlight how negative drivers such as power dynamics and political jockeying may impact founder departure, firm strategy, and firm performance (Boeker & Karichalil, ; Eisenhardt & Bourgeois, ; Kaplan, ).…”

Section: Research Questions and Designmentioning

confidence: 99%

Centers of gravity: The effect of stable shared leadership in top management teams on firm growth and industry evolution

Agarwal

Braguinsky

Ohyama

2019

Strategic Management Journal

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Research Summary We study the processes of firm growth in the evolution of the Japanese cotton spinning industry during 1883–1914 by integrating strategy and historical approaches and utilizing rich quantitative firm‐level data and detailed business histories. The resultant conceptual model highlights growth outcomes of path dependencies as firms evolve across periods of single versus shared leadership, establish stability in shared leadership, or experience repeated discord‐induced top management team (TMT) leader departures. While most firms do not experience smooth transitions to stable shared TMT leadership, a focus on value creation, in conjunction with talent recruitment and promotion, enabled some firms to achieve stable shared leadership despite discord‐induced departures, engage in long‐term expansion, and emerge as “centers of gravity” for output and talent in the industry. Managerial Summary We demonstrate stable shared leadership is at root of firms who emerge as centers of gravity in an industry and account for the lion's share of output. Stable shared leadership enables growth strategies such as talent recruitment, product diversification, downstream integration, and acquisitions. Stable shared leadership, however, is extremely difficult to maintain. Most firms experience discord‐induced departures in TMTs due to politics and power struggles. Firms that deviate from this norm to become industry leaders achieve stable shared leadership by adhering to fundamental principles related to long‐term value creation as opposed to short‐term gain, adoption of merit‐based promotion systems in defiance of stereotypes, sharing of power within TMT leadership to enable efficient division of labor, and honorable resolution of conflicts and ethical breaches.

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“…Past research has demonstrated that ventures led by teams outperform solo-ventures in terms of growth and profitability (Cooper and Bruno 1977;Lechler 2001). Thus, research on entrepreneurial teams, defined as "two or more individuals who have a significant financial interest and participate actively in the development of the enterprise" (Cooney 2005, p. 229), has flourished in the last two decades (Klotz et al 2014;Lazar et al 2019). Recently, the dynamic nature of entrepreneurial team composition has gained significant interest in the studies of entrepreneurial teams (Ucbasaran et al 2003;Guenther et al 2015;Le et al 2017;Nikiforou et al 2018).…”

Section: Introductionmentioning

confidence: 99%

Investigating the process of entrepreneurial team member exits: a systematic review and future research directions

Gregori

Parastuty

2020

Rev Manag Sci

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Entrepreneurial teams are dynamic entities that frequently experience the exit of individual team members. Such entrepreneurial team member exits (ETMEs) entail serious consequences for the exiting individual, the remaining team, and the performance of the affected venture. While ETMEs are receiving increasing scholarly attention, the research landscape is still considerably fragmented. This is the first article to take stock, analyze, and discuss this crucial and emerging field of research by providing a systematic review of the literature on ETMEs. We identify central themes comprising of antecedents, routes, consequences, and the contextual embeddedness of ETMEs and integrate them into a comprehensive processual framework. Based on this framework, we contribute to the research on ETMEs by discussing the themes in the light of promising theoretical perspectives, introducing novel ideas, concepts, and approaches to enrich future avenues. Specifically, we propose to expand the concept of team heterogeneity to advance our understanding of antecedents as well as to investigate power relations and negotiation behavior within ETME routes. In addition, we offer ways to resolve the sometimes inconsistent findings in terms of venture consequences and present a fertile approach for a more in-depth cultural contextualization of the phenomenon.

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Entrepreneurial Team Formation

Cited by 163 publications

References 119 publications

Jewels in the crown: Exploring the motivations and team building processes of employee entrepreneurs

Jewels in the crown: Exploring the motivations and team building processes of employee entrepreneurs

Centers of gravity: The effect of stable shared leadership in top management teams on firm growth and industry evolution

Investigating the process of entrepreneurial team member exits: a systematic review and future research directions

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