Friendship within Entrepreneurial Teams and its Association with Team and Venture Performance

Abstract

This article explores friendship within the entrepreneurial team with particular attention to its association with the team's behavior and the performance of the venture. Building on a foundation in the literatures on friendship, entrepreneurial teams, and strategic decisions, we propose 13 such relationships. Friendship facilitates the formation of management teams for new ventures, thereby improving their early performance. As the entrepreneurial team continues to function, friendship is conducive to decision-making processes that enhance the team's effectiveness in solving “wicked” problems and ultimately improve the venture's performance. Friendships, under different circumstances, may exert either positive or negative influences on turnover within the entrepreneurial team, and those influences may improve or impair the venture's performance. (At the same time, behavior within the team or events in the venture's development may affect friendships within the team.) Finally we develop and discuss several implications of our propositions for research and practice in entrepreneurship. We point out methodological considerations and directions for future research that would address these implications.

Small worlds, infinite possibilities? How social networks affect entrepreneurial team formation and search

“…Several studies of new venture performance suggest that pre-existing relationships might be an advantage within a team, rather than a source of concern (Francis and Sandberg, 2000). Forbes et als.'…”

La formation des équipes entrepreneuriales

“…Plus largement, l'observation empirique selon laquelle plus de la moitié des équipes entrepreneuriales sont formées de l'entrepreneur et de son conjoint permet de soulever la question de la nature des liens entretenus par les équipiers. Francis et Sandberg (2000) proposeront ainsi, en s'inscrivant dans le programme de recherche ouvert par Kamm et al (1990), de traiter à la fois de l'amitié comme fondement à la mise en place d'une équipe entrepreneuriale et de son impact sur la performance de l'entreprise créée. Plus largement, il est possible d'envisager la formation de l'équipe comme appuyée sur les liens entretenus au sein des réseaux sociaux.…”

Characteristics of Immigrant Entrepreneurs and Their Involvement in International New Ventures

“…The exposure increases the size of the social networks and the likelihood that international students will be able to establish friendships. Previous research suggests that these friendships facilitate the formation of a management team, and they can support new venture performance (Francis and Sandberg 2000). Of special interest, international students are often well positioned while studying to develop a network of friends who are also from their home country, creating the strong potential for transnational partnerships (Neri and Ville 2008).…”