In this paper, I propose a triangular relationship between entrepreneurial motivation, decision making and success of new venture teams. Based on longitudinal qualitative case studies of six founder teams of technology ventures, I argue that maximizing wealth and maintaining control are the main motivational drivers for strategic decisions of individuals. However, not the individual motivations per se, but the interplay of individual motivations of all team members have an impact on a venture’s strategic decisions. The study discloses that consistent team alignment regarding motivations over time is related to venture success. The implications of this study are discussed in terms of practical imprints. They suggest that further investigation into new venture team motivation and relation to success and decision making is warranted.
How do founders’ motivations in new venture teams affect strategic decision making and shape decision making between team members over time? How do the outcomes of these team member interactions affect venture success?
To answer these questions, I have employed a qualitative research approach employing grounded theory based on case studies from six ventures. Each team member was interviewed twice with an interval of six months in time difference. The data was then analyzed by applying an inductive coding approach. Based on this, I have discovered four main findings:
First, the main strategic motivations of why founders keep running their ventures are either maximizing wealth or maintaining control. These two motivations have a trade-off relationship. Second, a founder who shows a clear preference towards one of the main strategic motivations has highly aligned personal motifs of why she or he wanted to start founding the venture initially. Third, there are several factors within a team that enable highly aligned strategic motivations between all team members. Fourth, teams who strive for one clear strategic motivation are more successful in achieving their goals than teams with entrepreneurs of mixed motivations.
Table of Contents
1. Introduction
2. Literature Review
2.1. New Ventures, New Venture Teams and Context
2.2. Decision Making in New Venture Teams
2.3. Entrepreneurial Motivations
2.4. Venture Performance
3. Methodology
3.1. Research Design
3.2. Data Collection
3.3. Coding and Analysis
4. Findings
4.1. Individual Motivations
4.2. Interrelation between strategic motivations and personal motifs
4.3. Development of Individual motivations over time
4.4. Motivational Orientations within NVTs
4.5. Dynamics of Group Orientations and their Effect on Venture Success
4.6. Interplay of Individuals, Teams and Ventures
5. Discussion and Conclusion
5.1. Theoretical and Practical Implications
5.2. Limitations, Future Research, and Conclusions
Research Objectives & Core Topics
The core objective of this study is to examine how the motivations of founders within new venture teams influence strategic decision-making processes and shape team dynamics, ultimately impacting the overall success of the venture.
- The triangular relationship between entrepreneurial motivation, decision-making, and venture success.
- Longitudinal qualitative analysis of startup founder teams.
- The trade-off between maximizing personal wealth versus maintaining control over the venture.
- The impact of team alignment regarding individual and collective motivations.
Excerpt from the Book
1. Introduction
"I remember that at the very beginning, we (Eric and I) always had the feeling that it just fits, even with the people we hired. You just notice if it is a fit or not. Yes, I mean that feeling that you're on the same wavelength and that you have the feeling that you would make the same decisions". – Emily, Cofounder of Venture E.
Emily is the cofounder of a young, yet successful, tech-startup and describes her startup team's decision process as a feeling of being on the same wavelength on making the same decisions. When being asked how this decision develops, she says: "Actually you know what the best solution is". Where does this feeling for the right decision originate? Is it intuition? Is it motivation? We are all aware of intuitive decisions we might regularly take ourselves. Nevertheless, how does this relatively unconscious decision making fit into the context of strategic business decisions?
Psychology literature agrees that unconsciousness plays a dominant role in decision making processes (e.g. Bargh, 2005; Chartrand & Bargh, 1996; Kahneman, 2011; Kruglanski et al., 2002). Hassin, Uleman, and Bargh (2004) notice that people pursue goals without actively meaning to do so. This is where psychology research finds that motivation, which is usually unconscious, affects decision making (Higgins, 2005).
Summary of Chapters
1. Introduction: This chapter introduces the research context, highlighting the influence of unconscious motivation on strategic decision-making and presenting the central research questions.
2. Literature Review: The literature is reviewed to establish existing concepts regarding new venture teams, decision-making, entrepreneurial motivations, and venture performance.
3. Methodology: This section details the exploratory, qualitative longitudinal research design, the data collection through semi-structured interviews, and the inductive coding approach used.
4. Findings: The results of the analysis are presented, covering individual founder motivations, their alignment, and their group-level influence on venture outcomes.
5. Discussion and Conclusion: The research findings are synthesized to discuss their theoretical and practical implications, alongside limitations and future research directions.
Keywords
Entrepreneurial motivation, new venture teams, strategic decision-making, venture success, startup performance, founder motivation, team alignment, qualitative research, grounded theory, business management, venture growth, leadership, organizational behavior, startup dynamics.
Frequently Asked Questions
What is the primary focus of this research?
The work investigates the interplay between founders' motivations and their strategic decision-making processes within new venture teams.
What are the central thematic fields?
Focus areas include entrepreneurial motivation, group dynamics in startup teams, strategic decision-making, and objective venture performance.
What is the core research question?
The study asks how founders' motivations in new venture teams affect strategic decision-making and shape interactions between team members over time, and how these outcomes influence venture success.
What scientific method is utilized?
The author employs a qualitative research approach based on grounded theory, utilizing longitudinal case studies of six new technology ventures.
What does the main part cover?
The main part encompasses a comprehensive literature review, the methodological framework, and a detailed analysis of findings derived from interview data.
Which keywords best characterize this work?
Key terms include entrepreneurial motivation, new venture teams, decision-making, venture success, and startup development.
How is the "trade-off" between wealth and control defined?
The study defines this as a logical conflict where prioritizing control (e.g., maintaining 100% equity) often hinders growth (wealth maximization) because it restricts access to external capital and investors.
What is the main finding regarding "team alignment"?
The study concludes that new venture teams whose members share consistent, aligned strategic motivations—whether wealth-oriented or control-oriented—are more successful in achieving their business goals.
- Quote paper
- Elisabeth Barheine (Author), 2020, Decision Making Processes in New Venture Teams. Why motivation has an impact and the consequence for venture success, Munich, GRIN Verlag, https://www.grin.com/document/1438671
