New Venture Teams and the Quality of Business Opportunities Identified: Faultlines Between Subgroups of Founders and Investors

New venture teams (NVT) often comprise idea–conceiving founders and equity–based investors. These subgroups represent a faultline whose magnitude influences the quality of business opportunities. We propose that the faultline strength formed between founders and investors is influenced by structural...

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Veröffentlicht in:Entrepreneurship theory and practice 2013-01, Vol.37 (1), p.47-67
Hauptverfasser: Lim, JoAnne Yong-Kwan, Busenitz, Lowell W., Chidambaram, Laku
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container_title Entrepreneurship theory and practice
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creator Lim, JoAnne Yong-Kwan
Busenitz, Lowell W.
Chidambaram, Laku
description New venture teams (NVT) often comprise idea–conceiving founders and equity–based investors. These subgroups represent a faultline whose magnitude influences the quality of business opportunities. We propose that the faultline strength formed between founders and investors is influenced by structural factors (ownership equity, membership change, preexisting tie strength) and cognitive factor (mental models of the venture). Finally, we address how the faultline strength impacts interaction processes (relationship conflict, task conflict, knowledge exchange) and their subsequent impact on the quality of entrepreneurial opportunities. Our theoretical model provides insight into how informational resources inherent in new venture teams can be more effectively leveraged.
doi_str_mv 10.1111/j.1540-6520.2012.00550.x
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subjects Analysis
Business economics
Business enterprises
Capital investments
Economic impact analysis
Economic information
Economic models
Entrepreneurship
Forecasts and trends
Investment analysis
Management
New business enterprises
Organizational behavior
Startups
Studies
title New Venture Teams and the Quality of Business Opportunities Identified: Faultlines Between Subgroups of Founders and Investors
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