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How shared pre-start-up moments of transition and cognitions contextualize effectual and causal decisions in entrepreneurial teams

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  • Anne Tryba

    (Technical University of Munich, TUM School of Management)

  • Denise Fletcher

    (University of Luxembourg)

Abstract

Although it is reported that early venture decisions are influenced by the relationships and common history of entrepreneurial team members, little is known about how the mutual interests and ambitions experienced in the pre-start-up phase provide a shared and relational context for joint decisions. Drawing on a multiple case study approach of nine entrepreneurial teams in new ventures, this study identifies the shared pre-start-up moments of transition during which team members’ prior work and life patterns start to change. We show that in these intense moments, shared entrepreneurial cognition evolves among team members—the relationality of which provides a unique social context for decision behaviors. Our findings conclude that effectual behaviors advance a theory of context because in simultaneously working with effectual and causal logics (albeit with varying intensities), team decisions are realized that are consistent with the relational context that emerges in the pre-start-up moment.

Suggested Citation

  • Anne Tryba & Denise Fletcher, 2020. "How shared pre-start-up moments of transition and cognitions contextualize effectual and causal decisions in entrepreneurial teams," Small Business Economics, Springer, vol. 54(3), pages 665-688, March.
    • Handle: RePEc:kap:sbusec:v:54:y:2020:i:3:d:10.1007_s11187-019-00148-7
    DOI: 10.1007/s11187-019-00148-7
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    References listed on IDEAS

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    More about this item

    Keywords

    Effectuation; Entrepreneurial teams; Team decision-making; Shared cognition; Social context;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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