How Do Founding Teams Form? Towards a Behavioral Theory of Founding Team Formation

52 Pages Posted: 2 Jul 2018

See all articles by David Clough

David Clough

University of British Columbia (UBC) - Sauder School of Business

Balagopal Vissa

INSEAD

Date Written: July 2, 2018

Abstract

We advance entrepreneurship research by developing a theoretical model of how founding teams form and dynamically evolve via episodic addition and exit of cofounders. Our neo-Carnegie model situates founders in particular network-structural milieu, engaging in aspiration-driven search for and evaluation of prospective cofounders. Founding team formation is a consequence of mutually favorable evaluations in a multi-sided matching process. Founding team churn emerges as a consequence of shifting dominant coalition dynamics driven by organic venture evolution and intentional changes in strategic direction. Our multi-level model provides new insights on formation pathways of founding teams – both prior and subsequent to opportunity identification, teams’ initial task and relational endowments and their dynamic evolution.

Suggested Citation

Clough, David and Vissa, Balagopal, How Do Founding Teams Form? Towards a Behavioral Theory of Founding Team Formation (July 2, 2018). INSEAD Working Paper No. 2018/26/EFE. Available at SSRN: https://ssrn.com/abstract=3206701 or http://dx.doi.org/10.2139/ssrn.3206701

David Clough

University of British Columbia (UBC) - Sauder School of Business ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada

Balagopal Vissa (Contact Author)

INSEAD ( email )

F-77305 Fontainebleau Cedex
France

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