Achieving coherence : towards a model of the nascent-stage behavioral dynamics of new venture teams

Abstract

While research has begun to identify Team Entrepreneurial Passion (TEP) and Team Entrepreneurial Competencies (TEC) as drivers of new venture team (NVT) dynamics, current literature fails to account for how these cognitive elements interact to influence team behavior, particularly throughout the nascent stages of the entrepreneurial process. Previous research has almost exclusively investigated NVT dynamics at later stages, once the NVT is established, has successfully created the venture and begun capturing value from an opportunity they have capitalized on. The purpose of this paper is to fill this void by investigating NVT behavioral dynamics throughout the nascent stages of the entrepreneurial process–from initial venture idea generation, to venture opportunity development, and ultimately action to exploit that opportunity. We conduct multiple longitudinal case studies and observations of NVTs in the food service and fintech industries as the teams progress through the nascent stages of the entrepreneurial process. Bridging three formerly disparate constructs of shared cognition, TEP, and TEC, through the lens of construal-level theory, a conceptual model - of the coherence process of NVTs is developed. Construal levels accounts for the coherence of a NVT towards shared cognition, TEP and TEC and explain how and why differences in these constructs drive varying perceptions and ultimately team behavior and performance. Case study observations illustrate our theory that differences in construal level create conflict in entrepreneurial behavior which hinders NVT performance while congruency in construal level enables NVT coherence and performance. Through construal levels, this research offers novel insights into drivers of abstract, thinking and planning-type behaviors versus concrete, doing-type behaviors. This could inform the management of distinct behavioral approaches in an NVT context. Business incubators, NVTs and various entrepreneurial support programs can empirically test and use this model to understand when and how Shared Cognition, TEP and TEC develop and interact between a NVT’s members to impact team-level behaviors and outcomes.