Entrepreneurial team locus of control: diversity and trust

Abstract

Purpose – The purpose of this paper is to examine how internal locus of control (LOC) as a well-established entrepreneurial personality trait at team level impacts team performance (effectiveness and efficiency) in Austria. In addition, it investigates the interaction effects of LOC diversity and affective trust on the internal LOC-performance relationship. Design/methodology/approach – Data originated from 44 entrepreneurial teams based in nine business incubators in Austria. Partial least squares (PLS) structural equation modelling was used to estimate the model. Findings – Results indicate that higher internal LOC at team level promotes entrepreneurial team effectiveness and efficiency. However, team efficiency is increased when such teams possess a high internal LOC and low LOC diversity. Affective trust is identified as a crucial component in enhancing entrepreneurial team effectiveness, especially when the team has a high internal LOC. Originality/value – This study extends research on internal LOC at team level by investigating it as a predictor of entrepreneurial team effectiveness and efficiency. Second, it systematically analyses if and how diversity in internal LOC affects team performance in an entrepreneurial team context. The paper takes a pioneering step by testing a key methodological contribution of addressing the inherent bias in measuring diversity of small teams. Finally, it is one of the first studies to show not only the importance of affect in general, but also the trust based on affect for entrepreneurial team dynamics.

Team collaboration capabilities as a factor in startup success

“…In this respect, the concentrated, diverse and continual exchange of activities combine sophisticated knowledge, in which aspects such as trust, communication, problem-solving and team efficacy frequently play a relevant role. (Khan et al, 2014)it investigates the interaction effects of LOC diversity and affective trust on the internal LOC-performance relationship. Design/methodology/approach -Data originated from 44 entrepreneurial teams based in nine business incubators in Austria.…”

“…Several researchers observe that diversity of points of view stimulates and contributes to building creative processes such as linking ideas, performing tasks, designing solutions, and organizational structures. Specific team characteristics studied in the entrepreneurial and management literature include team composition, shared personal and professional objectives, professional recognition such as merits, and organizational support and trust (Khan et al, 2014)it investigates the interaction effects of LOC diversity and affective trust on the internal LOC-performance relationship. Design/methodology/approach -Data originated from 44 entrepreneurial teams based in nine business incubators in Austria.…”

Attributes of Entrepreneurial Teams as Elements of a Mental Model

“…The next attribute of an entrepreneurial team transferred from the characteristics Wydzia Zarz dzania UW DOI 10.7172/1733-9758.2016.21.1 of an individual entrepreneur is the internal locus of control. This factor is a valuable predictor of personal entrepreneurial success but also allows for expecting the entrepreneurial team to be effective and use resources in an optimal way (Khan, Breitencker and Schwarz, 2014). The positive impact of internal locus of control in the team context is reinforced by affective trust between team members.…”

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“…This factor is a valuable predictor of personal entrepreneurial success but also allows for expecting the entrepreneurial team to be effective and use resources in an optimal way (Khan, Breitencker and Schwarz, 2014). The positive impact of internal locus of control in the team context is reinforced by affective trust between team members.…”

“…Homogeneity can be beneficial while speaking about members' psychological traits, e.g. locus of control: a high level of the internalization of the locus of control makes entrepreneurial teams more effective (Khan, Breitencker and Schwarz, 2014). Homogeneity should also concern the team mental model integrating all the members' knowledge and notions about the team's mission, goals and tasks, as well as team processes.…”