Scholars only recently recognised the fact that new entrepreneurial ventures (i.e. start-ups) cannot be created and grown without the leadership of founders who initially formulate the vision and strategy of their organisations, set particular goals, and motivate and manage the efforts of their employees. Present research has mainly focused on quantitatively relating specific types of leadership behaviours to positive or negative new venture performance outcomes while neglecting to understand how the new venture context influences the initial choices of entrepreneurs to lead in a certain way.
To close this research gap, this study examined the leadership behaviour of start-up founder-CEOs and the reasons for the practised styles through qualitative research. Transcripts of semi-structured interviews with 17 entrepreneurs who obtain the CEO (Chief Executive Officer) position in their start-ups were analysed using narrative interpretation. The study was conducted over a period of three months and sought to identify the participants' leadership behaviour by asking them specific indirect and direct questions that would reveal patterns of their leadership behaviour. The entrepreneurs’ leadership behaviour was then examined across the dimensions of vertical and shared leadership before identifying transactional, transformational as well as empowering and directive behaviours.
With the findings of this study, it is hoped that scholars, students as well as professionals can gain a better understanding of leadership practices in start-ups and why shared and empowering leadership behaviours are predominant. For future research, the results of this study highlight the importance of qualitatively examining entrepreneurs' leadership behaviour as well as further investigating the relationship between the new venture context and the demonstrated leadership behaviours.
Table of Contents
1 Introduction
1.1 Background
1.2 Objectives of this study
1.3 Layout
2 Literature Review
2.1 Introduction
2.2 Entrepreneurship in the New Venture Context
2.3 Bridging Entrepreneurship and Leadership
2.4 Leadership behaviours in the new venture context
2.4.1 Transactional Leadership within the New Venture Context
2.4.2 Transformational Leadership within the New Venture Context
2.4.3 Empowering Leadership within the New Venture Context
2.4.4 Directive Leadership within the New Venture Context
2.4.5 Vertical and Shared Leadership within the New Venture Context
2.5 A Case for Further Research
3 Methodology
3.1 Research Approach
3.2 Research Design
3.3 Research Strategy
3.4 Analysis of Qualitative Data
3.5 Research Limitations
4 Findings and Discussion
4.1 Introduction
4.2 Founder's duties in the new venture process
4.3 Shared & Vertical Leadership
4.4 Transformational Leadership
4.5 Transactional Leadership
4.6 Empowering Leadership
4.7 Directive Leadership
4.8 Situational Leadership Behaviour
4.9 Summary
6 Conclusion
Research Objectives and Core Themes
This study explores the leadership behaviours of start-up founder-CEOs through a qualitative lens, aiming to identify why certain styles are more prevalent and how these behaviours evolve over time within the new venture context. The research focuses on the dynamic relationship between the entrepreneur's choices and the influencing contextual factors.
- Qualitative investigation of leadership practices in start-ups
- Analysis of vertical versus shared leadership models
- Examination of transactional, transformational, empowering, and directive behaviours
- Impact of firm lifecycle stages on leadership requirements
- Identification of factors mediating leadership style choices
Excerpt from the Book
4.2 Founder's duties in the new venture process
As mentioned in chapter 2.3, all entrepreneurs have to go through a similar new venture process. As seen in Table 5, the first step is to locate a business opportunity, or a business idea as interviewee 5 explained. Congruent with Baum, Locke, & Kirkpatrick, (1998), entrepreneurs initially define a vision as stated by interviewee 6 (Table 5). When it comes to the first operational tasks, most CEOs mentioned that they had to do everything that needed attention at the start of their new venture. Founders had to work simultaneously on several tasks in an unstructured environment where there were no clear responsibilities, as mentioned by interviewee 9 (Table 5). While the handling of multiple tasks at once can mean inefficiency at the beginning, it also means that founders learn how their business works from the ground up. By being involved in all tasks information in the new venture were also completely transparent which allowed them to keep an overview of everything that happens in the business.
Furthermore, inexperienced founders had to learn everything from the bottom, as interviewee 15 mentioned (Table 5). Until the business is ready for growth, founder-CEOs continue to do most things, as mentioned by interviewee 16 (Table 5).
Summary of Chapters
1 Introduction: Outlines the research focus on examining the leadership behaviour of start-up founder-CEOs and explains the rationale for this study.
2 Literature Review: Provides a theoretical foundation by bridging entrepreneurship and leadership domains and reviewing existing leadership styles in new venture contexts.
3 Methodology: Explains the use of semi-structured interviews with 17 founder-CEOs as a qualitative research method to collect primary data.
4 Findings and Discussion: Presents the central qualitative findings regarding founder duties, shared/vertical leadership, and specific leadership behaviours like empowering or transactional styles.
6 Conclusion: Reflects on the findings, summarizes that shared and empowering leadership are prevalent, and provides implications for future research.
Keywords
Entrepreneurship, Start-ups, Founder-CEO, Leadership Behaviour, Shared Leadership, Vertical Leadership, Empowering Leadership, Transformational Leadership, Transactional Leadership, Directive Leadership, Qualitative Research, New Venture Context, Management Strategy, Organizational Growth, Decision-making
Frequently Asked Questions
What is the primary focus of this dissertation?
The research examines the leadership behaviours of start-up founder-CEOs and investigates the factors within the new venture context that influence these choices.
Which central themes are discussed?
Key themes include the shift in founder duties over time, the implementation of shared versus vertical leadership, and the prevalence of empowering leadership in early-stage firms.
What is the main objective of this study?
The aim is to close the research gap regarding why entrepreneurs demonstrate specific leadership behaviours in the first place, moving beyond existing quantitative performance-based research.
What scientific method was applied?
The study utilized a qualitative research design, conducting semi-structured interviews with 17 founder-CEOs, followed by narrative interpretation and categorization using Nvivo software.
What does the main part of the work cover?
The findings and discussion section details the practical realities of start-up leadership, including how tasks evolve from operational to strategic and how different leadership styles are applied.
Which keywords best characterize this research?
Primary keywords include Founder-CEO, New Venture Context, Shared Leadership, and Empowering Leadership.
Why is shared leadership prevalent in the studied start-ups?
Participants indicated that shared leadership arises from mutual trust, the need to maximize individual strengths, and the necessity to manage high information-processing burdens during the growth phase.
How does the leadership style change as a start-up grows?
While empowering leadership is dominant, findings suggest that as the organization becomes more structured, leaders may incorporate more transactional and directive behaviours to improve processes and clarify objectives.
- Arbeit zitieren
- Mathias Schubert (Autor:in), 2016, Leadership Behaviour of Start-up Founder-CEOs, München, GRIN Verlag, https://www.grin.com/document/353504
