Using kinetic Monte Carlo simulations, we develop a framework to relate morphological properties and microscopic dynamics during island growth, coalescence, and initial formation of continuous heteroepitaxial films. The average island width is controlled by adatom mobility on the substrate. Subsequent evolution strongly depends on the Ehrlich-Schwöebel energy barrier E ES of the deposited material. As E ES decreases, islands becomes taller and their coalescence is delayed. For small islands and large E ES , the global roughness increases as W ∼ thickness 1/2 and the local roughness increases