IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v51y2018i2d10.1007_s11187-018-0010-z.html
   My bibliography  Save this article

Team formation processes in new ventures

Author

Listed:
  • Lukas Held

    () (Utrecht University)

  • Andrea M. Herrmann

    (Utrecht University)

  • Allard Mossel

    (Utrecht University)

Abstract

While entrepreneurship research theorizing about the team formation in start-up ventures exists, such studies mostly focus on different outcomes of team formation, for example the number of employees. Questions about how team formation processes unfold and the factors, such as labor-market institutions, influencing their evolvement remain unanswered. To address this research gap, we analyze the venture creation processes of 344 ventures in Germany and the USA, offering particularly typical examples of countries with regulated and deregulated labor-market institutions respectively. Based on optimal matching techniques, we illustrate how team formation processes differ over time in terms of founder and employee involvement and the hiring of service providers. Furthermore, we use binary logistic regressions to identify the extent to which national labor-market institutions account for these differences.

Suggested Citation

  • Lukas Held & Andrea M. Herrmann & Allard Mossel, 2018. "Team formation processes in new ventures," Small Business Economics, Springer, vol. 51(2), pages 441-464, August.
  • Handle: RePEc:kap:sbusec:v:51:y:2018:i:2:d:10.1007_s11187-018-0010-z
    DOI: 10.1007/s11187-018-0010-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-018-0010-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Simon C. Parker, 2010. "Contracting Out, Public Policy And Entrepreneurship," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(2), pages 119-144, May.
    2. Andreas Koch & Jochen Späth & Harald Strotmann, 2013. "The role of employees for post-entry firm growth," Small Business Economics, Springer, vol. 41(3), pages 733-755, October.
    3. D.B. Audretsch & L. Klomp & E. Santarelli & A.R. Thurik, 2004. "Gibrat's Law: Are the Services Different?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(3), pages 301-324, May.
    4. Niels Bosma & Mirjam van Praag & Roy Thurik & Gerrit de Wit, 2004. "The Value of Human and Social Capital Investments for the Business Performance of Startups," Small Business Economics, Springer, vol. 23(3), pages 227-236, October.
    5. Davidsson, Per & Henrekson, Magnus, 2002. "Determinants of the Prevalence of Start-Ups and High-Growth Firms," Small Business Economics, Springer, vol. 19(2), pages 81-104, September.
    6. Jörn H. Block & Andreas Landgraf, 2016. "Transition from part-time entrepreneurship to full-time entrepreneurship: the role of financial and non-financial motives," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 259-282, March.
    7. Frédéric Delmar & Scott Shane, 2003. "Does business planning facilitate the development of new ventures?," Strategic Management Journal, Wiley Blackwell, vol. 24(12), pages 1165-1185, December.
    8. Elizabeth Garnsey & Erik Stam & Paul Heffernan, 2006. "New Firm Growth: Exploring Processes and Paths," Industry and Innovation, Taylor & Francis Journals, vol. 13(1), pages 1-20.
    9. Timothy B. Folta & Frédéric Delmar & Karl Wennberg, 2010. "Hybrid Entrepreneurship," Management Science, INFORMS, vol. 56(2), pages 253-269, February.
    10. Per Davidsson & Scott Gordon, 2012. "Panel studies of new venture creation: a methods-focused review and suggestions for future research," Small Business Economics, Springer, vol. 39(4), pages 853-876, November.
    11. Petra Andries & Dirk Czarnitzki, 2014. "Small firm innovation performance and employee involvement," Small Business Economics, Springer, vol. 43(1), pages 21-38, June.
    12. Concepción Román & Emilio Congregado & José Millán, 2011. "Dependent self-employment as a way to evade employment protection legislation," Small Business Economics, Springer, vol. 37(3), pages 363-392, October.
    13. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    14. Chandler, Gaylen N. & Honig, Benson & Wiklund, Johan, 2005. "Antecedents, moderators, and performance consequences of membership change in new venture teams," Journal of Business Venturing, Elsevier, vol. 20(5), pages 705-725, September.
    15. Andrea Weber & Christine Zulehner, 2010. "Female Hires and the Success of Start-Up Firms," American Economic Review, American Economic Association, vol. 100(2), pages 358-361, May.
    16. Gary Pollock, 2007. "Holistic trajectories: a study of combined employment, housing and family careers by using multiple‐sequence analysis," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(1), pages 167-183, January.
    17. Robert J. Bennett & Paul J. A. Robson, 1999. "The use of external business advice by SMEs in Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(2), pages 155-180, April.
    18. Selin Dilli & Niklas Elert & Andrea M. Herrmann, 2018. "Varieties of entrepreneurship: exploring the institutional foundations of different entrepreneurship types through ‘Varieties-of-Capitalism’ arguments," Small Business Economics, Springer, vol. 51(2), pages 293-320, August.
    19. Kazanjian, Robert K. & Drazin, Robert, 1990. "A stage-contingent model of design and growth for technology based new ventures," Journal of Business Venturing, Elsevier, vol. 5(3), pages 137-150, May.
    20. André Stel & David Storey & A. Thurik, 2007. "The Effect of Business Regulations on Nascent and Young Business Entrepreneurship," Small Business Economics, Springer, vol. 28(2), pages 171-186, March.
    21. Colombo, Massimo G. & Grilli, Luca, 2005. "Founders' human capital and the growth of new technology-based firms: A competence-based view," Research Policy, Elsevier, vol. 34(6), pages 795-816, August.
    22. Jeffery S. McMullen & Dimo Dimov, 2013. "Time and the Entrepreneurial Journey: The Problems and Promise of Studying Entrepreneurship as a Process," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1481-1512, December.
    23. William Gartner & Kelly Shaver, 2012. "Nascent entrepreneurship panel studies: progress and challenges," Small Business Economics, Springer, vol. 39(3), pages 659-665, October.
    24. Magnus Henrekson & Dan Johansson & Mikael Stenkula, 2010. "Taxation, Labor Market Policy and High-Impact Entrepreneurship," Journal of Industry, Competition and Trade, Springer, vol. 10(3), pages 275-296, September.
    25. Reynolds, Paul & Miller, Brenda, 1992. "New firm gestation: Conception, birth, and implications for research," Journal of Business Venturing, Elsevier, vol. 7(5), pages 405-417, September.
    26. Román, Concepción & Congregado, Emilio & Millán, José María, 2013. "Start-up incentives: Entrepreneurship policy or active labour market programme?," Journal of Business Venturing, Elsevier, vol. 28(1), pages 151-175.
    27. Sander Wennekers & André Stel & Roy Thurik & Paul Reynolds, 2008. "Nascent entrepreneurship and the level of economic development," Small Business Economics, Springer, vol. 30(3), pages 325-325, March.
    28. Chandler, Gaylen N. & McKelvie, Alexander & Davidsson, Per, 2009. "Asset specificity and behavioral uncertainty as moderators of the sales growth -- Employment growth relationship in emerging ventures," Journal of Business Venturing, Elsevier, vol. 24(4), pages 373-387, July.
    29. Michael S. Dahl & Steven Klepper, 2015. "Whom do new firms hire?," Industrial and Corporate Change, Oxford University Press, vol. 24(4), pages 819-836.
    30. Gavin Cassar & Christopher Ittner, 2009. "Initial Retention of External Accountants in Startup Ventures," European Accounting Review, Taylor & Francis Journals, vol. 18(2), pages 313-340.
    31. Gatewood, Elizabeth J. & Shaver, Kelly G. & Gartner, William B., 1995. "A longitudinal study of cognitive factors influencing start-up behaviors and success at venture creation," Journal of Business Venturing, Elsevier, vol. 10(5), pages 371-391, September.
    32. Poole, Marshall Scott & Van de Ven, Andrew H. & Dooley, Kevin & Holmes, Michael E., 2000. "Organizational Change and Innovation Processes: Theory and Methods for Research," OUP Catalogue, Oxford University Press, number 9780195131987.
    33. Kameliia Petrova, 2012. "Part-time entrepreneurship and financial constraints: evidence from the Panel Study of Entrepreneurial Dynamics," Small Business Economics, Springer, vol. 39(2), pages 473-493, September.
    34. Van de Ven, Andrew H. & Engleman, Rhonda M., 2004. "Event- and outcome-driven explanations of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 19(3), pages 343-358, May.
    35. Michael Fritsch & Antje Weyh, 2006. "How Large are the Direct Employment Effects of New Businesses? An Empirical Investigation for West Germany," Small Business Economics, Springer, vol. 27(2), pages 245-260, October.
    36. Silke Aisenbrey & Anette E. Fasang, 2010. "New Life for Old Ideas: The "Second Wave" of Sequence Analysis Bringing the "Course" Back Into the Life Course," Sociological Methods & Research, , vol. 38(3), pages 420-462, February.
    37. Cooper, Arnold C. & Woo, Carolyn Y. & Dunkelberg, William C., 1989. "Entrepreneurship and the initial size of firms," Journal of Business Venturing, Elsevier, vol. 4(5), pages 317-332, September.
    38. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    39. Amason, Allen C. & Shrader, Rodney C. & Tompson, George H., 2006. "Newness and novelty: Relating top management team composition to new venture performance," Journal of Business Venturing, Elsevier, vol. 21(1), pages 125-148, January.
    40. Brendan Halpin, 2010. "Optimal Matching Analysis and Life-Course Data: The Importance of Duration," Sociological Methods & Research, , vol. 38(3), pages 365-388, February.
    41. Mikael Samuelsson & Per Davidsson, 2009. "Does venture opportunity variation matter? Investigating systematic process differences between innovative and imitative new ventures," Small Business Economics, Springer, vol. 33(2), pages 229-255, August.
    42. Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September.
    43. Carter, Nancy M. & Gartner, William B. & Reynolds, Paul D., 1996. "Exploring start-up event sequences," Journal of Business Venturing, Elsevier, vol. 11(3), pages 151-166, May.
    44. Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-559, November.
    45. Delmar, Frederic & Shane, Scott, 2004. "Legitimating first: organizing activities and the survival of new ventures," Journal of Business Venturing, Elsevier, vol. 19(3), pages 385-410, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrea M. Herrmann, 2019. "A plea for varieties of entrepreneurship," Small Business Economics, Springer, vol. 52(2), pages 331-343, February.
    2. Elert, Niklas & Henrekson, Magnus, 2020. "Innovative Entrepreneurship as a Collaborative Effort: An Institutional Framework," Working Paper Series 1345, Research Institute of Industrial Economics, revised 24 Mar 2021.
    3. Claire Economidou & Luca Grilli & Magnus Henrekson & Mark Sanders, 2018. "Financial and Institutional Reforms for an Entrepreneurial Society," Small Business Economics, Springer, vol. 51(2), pages 279-291, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Crawford, G. Christopher & Aguinis, Herman & Lichtenstein, Benyamin & Davidsson, Per & McKelvey, Bill, 2015. "Power law distributions in entrepreneurship: Implications for theory and research," Journal of Business Venturing, Elsevier, vol. 30(5), pages 696-713.
    2. Klyver, Kim & Steffens, Paul & Lomberg, Carina, 2020. "Having your cake and eating it too? A two-stage model of the impact of employment and parallel job search on hybrid nascent entrepreneurship," Journal of Business Venturing, Elsevier, vol. 35(5).
    3. Per Davidsson & Scott Gordon, 2012. "Panel studies of new venture creation: a methods-focused review and suggestions for future research," Small Business Economics, Springer, vol. 39(4), pages 853-876, November.
    4. Siepel, Josh & Cowling, Marc & Coad, Alex, 2017. "Non-founder human capital and the long-run growth and survival of high-tech ventures," Technovation, Elsevier, vol. 59(C), pages 34-43.
    5. Werner Liebregts & Pourya Darnihamedani & Eric Postma & Martin Atzmueller, 2020. "The promise of social signal processing for research on decision-making in entrepreneurial contexts," Small Business Economics, Springer, vol. 55(3), pages 589-605, October.
    6. Jose Maria Millan & Emilio Congregado & Concepcion Roman & Mirjam van Praag & Andre van Stel, 2011. "The Value of an Educated Population for an Individual's Entrepreneurship Success," Tinbergen Institute Discussion Papers 11-066/3, Tinbergen Institute, revised 06 May 2014.
    7. Kun Fu & Anne-Sophie Larsson & Karl Wennberg, 2018. "Habitual entrepreneurs in the making: how labour market rigidity and employment affects entrepreneurial re-entry," Small Business Economics, Springer, vol. 51(2), pages 465-482, August.
    8. Kim, Phillip H. & Longest, Kyle C. & Lippmann, Stephen, 2015. "The tortoise versus the hare: Progress and business viability differences between conventional and leisure-based founders," Journal of Business Venturing, Elsevier, vol. 30(2), pages 185-204.
    9. Dimo Dimov, 2010. "Nascent Entrepreneurs and Venture Emergence: Opportunity Confidence, Human Capital, and Early Planning," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1123-1153, September.
    10. Román, Concepción & Congregado, Emilio & Millán, José María, 2013. "Start-up incentives: Entrepreneurship policy or active labour market programme?," Journal of Business Venturing, Elsevier, vol. 28(1), pages 151-175.
    11. Qin, Fei & Wright, Mike & Gao, Jian, 2017. "Are ‘sea turtles’ slower? Returnee entrepreneurs, venture resources and speed of entrepreneurial entry," Journal of Business Venturing, Elsevier, vol. 32(6), pages 694-706.
    12. Peter van der Zwan & Ingrid Verheul & Roy Thurik & Isabel Grilo, 2009. "Entrepreneurial Progress: Climbing the Entrepreneurial Ladder in Europe and the US," Tinbergen Institute Discussion Papers 09-070/3, Tinbergen Institute, revised 17 Mar 2010.
    13. Kim Klyver & Benson Honig & Paul Steffens, 2018. "Social support timing and persistence in nascent entrepreneurship: exploring when instrumental and emotional support is most effective," Small Business Economics, Springer, vol. 51(3), pages 709-734, October.
    14. Domenico Nicolò, 2018. "Carenze informative e vulnerabilità delle imprese giovani: il ruolo del business plan," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(2 Suppl.), pages 37-52.
    15. Lichtenstein, Benyamin B. & Carter, Nancy M. & Dooley, Kevin J. & Gartner, William B., 2007. "Complexity dynamics of nascent entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(2), pages 236-261, March.
    16. Christian Linder & Christian Lechner & Frank Pelzel, 2020. "Many Roads Lead to Rome: How Human, Social, and Financial Capital Are Related to New Venture Survival," Entrepreneurship Theory and Practice, , vol. 44(5), pages 909-932, September.
    17. Bonev, Pavlin & Egbert, Henrik & Neumann, Thomas, 2014. "Examining Entrepreneurial Potential," MPRA Paper 60493, University Library of Munich, Germany.
      • Pavlin Bonev & Henrik Egbert & Thomas Neumann, 2015. "Examining Entrepreneurial Potential," Bulgarian Economic Papers bep-2015-02, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski, revised Feb 2015.
    18. Erik Stam & Karl Wennberg, 2009. "The roles of R&D in new firm growth," Small Business Economics, Springer, vol. 33(1), pages 77-89, June.
    19. Diana Hechavarría & Charles Matthews & Paul Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    20. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.

    More about this item

    Keywords

    New venture creation; Team formation; Entrepreneurship; Varieties-of-capitalism; Optimal matching; Labor-market institutions;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:51:y:2018:i:2:d:10.1007_s11187-018-0010-z. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.