BusinessStartupsEntrepreneurs perform better if able to choose ideas OR...

Entrepreneurs perform better if able to choose ideas OR team members – but not both

-

- Advertisment -sslate

Entrepreneurial teams perform better if able to choose their own team members or their own ideas, finds new research from ESMT Berlin. However, this benefit to performance disappears if given autonomy to choose both.

Scholars suggest autonomy can lead to better entrepreneurial team performance, but there are different types of autonomy. Viktoria Boss and Christoph Ihl, both from Hamburg University of Technology, and Linus Dahlander and Rajshri Jayaraman, both from ESMT Berlin, investigated how two types of autonomy affect the performance of entrepreneurial teams: choosing project ideas to work on and choosing team members to work with.

The researchers ran a field experiment involving 939 students on a startup entrepreneurship course in which students are organised into teams to develop and pitch business ideas. Individuals were assigned to one of four scenarios: 1) choosing their team members and idea, 2) choosing their team members, 3) choosing their idea, or 4) choosing neither their team nor idea.

In teams, students developed an entrepreneurial pitch deck; a presentation aimed at hypothetical venture capitalists to secure funding. Pitch decks were assessed on six criteria: novelty, feasibility, market potential, likelihood of success, likelihood of invitation for follow-up, and investment amount.

Results show that teams with autonomy to choose ideas or team members outperform teams without the autonomy to choose either. However, the effect of choosing ideas is significantly stronger than the effect of choosing teams. Also, these benefits were not seen for teams granted full autonomy over choosing both ideas and teams.

Entrepreneurship

Professor Dahlander says,

“Choosing ideas or teams can lead to a better match of ideas with team members’ interests and prior network contacts among team members, respectively. Also, granting autonomy increases feelings of confidence which can have a motivational effect. However, if confidence rises above a critical threshold, teams can experience overconfidence and exhibit complacency and lack of focus. This points to the possibility that those who chose both teams and ideas experienced too much confidence too soon, reducing subsequent effort.”

These findings are important to the professionalisation of entrepreneurship, particularly incubator and accelerator programmes, most of which give aspiring entrepreneurs a choice on both ideas and team members. These results suggest granting autonomy solely over choosing ideas would lead to the highest performance outcome.

Sunshine Slate
Sunshine Slatehttps://www.sunshineslate.com
Sunshine Slate is your news, entertainment, music fashion website. We provide you with the latest breaking news and videos straight from the United States of America.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Top 4 AC Features you Need in 2023

In this article, we'll explore the top 4 AC features you need in 2023, with a particular focus on Hitachi Cooling & Heating

From Raw Material to Masterpiece: The Process of Steel Fabrication

Steel fabrication is the process of turning raw steel into finished goods. Globally, the steel fabrication business is important to many nations' economies.

Not just aNYplace: SS23 Campaign at GANT.com

This spring, GANT invited a cast of creatives to show how their unique style channels the chaos and coolness of New York City.

Black, Male, Blood type A: New review identifies risk factors for Pancreatic Cancer

Smoking, gender, ethnicity, and even gum disease and blood type can be risk factors of pancreatic cancer, reveals new insights
- Advertisement -

Florida Group Works to Keep Eligible People on Medicaid

Public health emergency and returns its Medicaid program to pre-pandemic rules, a possibility that older people could lose their coverage

Could Legislation Targeting Public-Sector Unions Threaten Academic Freedom?

Union leaders and public-sector workers say bills advancing in the Florida Legislature, if passed, will strip them of their representation
edealo.com
- Advertisement - Motel 6
transformerscon

Must read

8 Reasons to Use Bidet Converter Kit

Overall, bidet converter kits offer a range of benefits for personal hygiene, environmental sustainability, and overall health and well-being. If you're considering making the switch from traditional toilet paper, a bidet converter kit may be a great option to explore.

5 Best Hair Treatment Salon in Dubai You Feel Excited to Visit

They get to explore new places while looking their stunning best. If you are a foreigner looking to visit Dubai or are a local who wants top-quality hair treatment, then keep reading. Why? Well, we are going to list the best hair treatment salons in Dubai.
- Advertisement -
- Advertisement -sslate

You might also likeRELATED
Recommended to you