IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v59y2022i1d10.1007_s11187-021-00543-z.html
   My bibliography  Save this article

New venture dissolution and the comobility of new venture teams

Author

Listed:
  • Nazanin Eftekhari

    (Aalborg University Business School)

  • Bram Timmermans

    (Aalborg University Business School
    NHH Norwegian School of Economics)

Abstract

While the dissolution of new ventures is a common phenomenon in the organizational landscape, it seldom means the end of the road for those involved in the new venture. Nevertheless, most research treats this dissolution with a sense of finality. Using the Danish Integrated Database for Labor Market Research (IDA), we explore the persistence of cofounders and early employees to continue their work relationships after the dissolution of the new venture. We investigate where these team members continue their career and whether they pursue entrepreneurship together in another new venture. Overall, over 18.3% move jointly, and comobility is more prevalent among new venture team members who worked jointly prior to founding the new venture and among those new venture teams demonstrating high levels of homogeneity. Moreover, comovers tend toward small firms, and comobility occurs largely in similar industry. A large share of comovers move to new ventures, which is indicative of serial or habitual new venture teams. This also raises further question on team-level dimension of learning from failure.

Suggested Citation

  • Nazanin Eftekhari & Bram Timmermans, 2022. "New venture dissolution and the comobility of new venture teams," Small Business Economics, Springer, vol. 59(1), pages 279-298, June.
    • Handle: RePEc:kap:sbusec:v:59:y:2022:i:1:d:10.1007_s11187-021-00543-z
    DOI: 10.1007/s11187-021-00543-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-021-00543-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-021-00543-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    2. Johan Eklund & Nadine Levratto & Giovanni B. Ramello, 2020. "Entrepreneurship and failure: two sides of the same coin?," Small Business Economics, Springer, vol. 54(2), pages 373-382, February.
    3. Michael Dahl & Toke Reichstein, 2007. "Are You Experienced? Prior Experience and the Survival of New Organizations," Industry and Innovation, Taylor & Francis Journals, vol. 14(5), pages 497-511.
    4. Alex Coad & Kristian Nielsen & Bram Timmermans, 2017. "My first employee: an empirical investigation," Small Business Economics, Springer, vol. 48(1), pages 25-45, January.
    5. Gary P. Pisano, 1994. "Knowledge, Integration, and the Locus of Learning: An Empirical Analysis of Process Development," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 85-100, December.
    6. Ishani Aggarwal & Anita Williams Woolley, 2019. "Team Creativity, Cognition, and Cognitive Style Diversity," Management Science, INFORMS, vol. 65(4), pages 1586-1599, April.
    7. Boris Groysberg & Linda-Eling Lee & Ashish Nanda, 2008. "Can They Take It With Them? The Portability of Star Knowledge Workers' Performance," Management Science, INFORMS, vol. 54(7), pages 1213-1230, July.
    8. Michael S. Dahl & Olav Sorenson, 2012. "Home Sweet Home: Entrepreneurs' Location Choices and the Performance of Their Ventures," Management Science, INFORMS, vol. 58(6), pages 1059-1071, June.
    9. Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
    10. Saras Sarasvathy & Anil Menon & Graciela Kuechle, 2013. "Failing firms and successful entrepreneurs: serial entrepreneurship as a temporal portfolio," Small Business Economics, Springer, vol. 40(2), pages 417-434, February.
    11. Singh, Smita & Corner, Patricia & Pavlovich, Kathryn, 2007. "Coping with entrepreneurial failure," Journal of Management & Organization, Cambridge University Press, vol. 13(4), pages 331-344, November.
    12. Vera Rocha & Anabela Carneiro & Celeste Varum, 2018. "Leaving Employment to Entrepreneurship: The Value of Co†worker Mobility in Pushed and Pulled†Driven Start†ups," Journal of Management Studies, Wiley Blackwell, vol. 55(1), pages 60-85, January.
    13. Yanfeng Zheng & Michael L. Devaughn & Mary Zellmer-Bruhn, 2016. "Shared and shared alike? Founders' prior shared experience and performance of newly founded banks," Strategic Management Journal, Wiley Blackwell, vol. 37(12), pages 2503-2520, December.
    14. Cardon, Melissa S. & Stevens, Christopher E. & Potter, D. Ryland, 2011. "Misfortunes or mistakes?: Cultural sensemaking of entrepreneurial failure," Journal of Business Venturing, Elsevier, vol. 26(1), pages 79-92, January.
    15. Bill McEvily & Vincenzo Perrone & Akbar Zaheer, 2003. "Trust as an Organizing Principle," Organization Science, INFORMS, vol. 14(1), pages 91-103, February.
    16. Matt Marx & Bram Timmermans, 2017. "Hiring Molecules, Not Atoms: Comobility and Wages," Organization Science, INFORMS, vol. 28(6), pages 1115-1133, December.
    17. Ucbasaran, Deniz & Westhead, Paul & Wright, Mike, 2009. "The extent and nature of opportunity identification by experienced entrepreneurs," Journal of Business Venturing, Elsevier, vol. 24(2), pages 99-115, March.
    18. Robert S. Huckman & Bradley R. Staats & David M. Upton, 2009. "Team Familiarity, Role Experience, and Performance: Evidence from Indian Software Services," Management Science, INFORMS, vol. 55(1), pages 85-100, January.
    19. Vera Rocha & Mirjam van Praag, 2020. "Mind the gap: The role of gender in entrepreneurial career choice and social influence by founders," Strategic Management Journal, Wiley Blackwell, vol. 41(5), pages 841-866, May.
    20. Yasemin Y. Kor & Joseph T. Mahoney, 2000. "Penrose’s Resource‐Based Approach: The Process and Product of Research Creativity," Journal of Management Studies, Wiley Blackwell, vol. 37(1), pages 1-1, January.
    21. Jaeyong Song & Paul Almeida & Geraldine Wu, 2003. "Learning--by--Hiring: When Is Mobility More Likely to Facilitate Interfirm Knowledge Transfer?," Management Science, INFORMS, vol. 49(4), pages 351-365, April.
    22. Elisabeth Bublitz & Kristian Nielsen & Florian Noseleit & Bram Timmermans, 2018. "Entrepreneurship, human capital, and labor demand: a story of signaling and matching," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 269-287.
    23. Cope, Jason, 2011. "Entrepreneurial learning from failure: An interpretative phenomenological analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 604-623.
    24. Roure, Juan B. & Maidique, Modesto A., 1986. "Linking prefunding factors and high-technology venture success: An exploratory study," Journal of Business Venturing, Elsevier, vol. 1(3), pages 295-306.
    25. Adam M. Kleinbaum & Toby E. Stuart & Michael L. Tushman, 2013. "Discretion Within Constraint: Homophily and Structure in a Formal Organization," Organization Science, INFORMS, vol. 24(5), pages 1316-1336, October.
    26. Beckman, Christine M. & Burton, M. Diane & O'Reilly, Charles, 2007. "Early teams: The impact of team demography on VC financing and going public," Journal of Business Venturing, Elsevier, vol. 22(2), pages 147-173, March.
    27. Kyle Lewis, 2004. "Knowledge and Performance in Knowledge-Worker Teams: A Longitudinal Study of Transactive Memory Systems," Management Science, INFORMS, vol. 50(11), pages 1519-1533, November.
    28. Jenkins, Anna & McKelvie, Alexander, 2017. "Is this the end? Investigating firm and individual level outcomes post-failure," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 138-143.
    29. Frédéric Delmar & Scott Shane, 2006. "Does Experience Matter? : The Effect of Founding Team Experience on the Survival and Sales of Newly Founded Ventures," Post-Print hal-02311638, HAL.
    30. Deniz Ucbasaran & Andy Lockett & Mike Wright & Paul Westhead, 2003. "Entrepreneurial Founder Teams: Factors Associated with Member Entry and Exit," Entrepreneurship Theory and Practice, , vol. 28(2), pages 107-128, March.
    31. Chillemi, Ottorino & Gui, Benedetto, 1997. "Team Human Capital and Worker Mobility," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 567-585, October.
    32. Gruenfeld, Deborah H & Mannix, Elizabeth A. & Williams, Katherine Y. & Neale, Margaret A., 1996. "Group Composition and Decision Making: How Member Familiarity and Information Distribution Affect Process and Performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 67(1), pages 1-15, July.
    33. Ye Dai & Philip T. Roundy & Jay I. Chok & Fangsheng Ding & Gukdo Byun, 2016. "‘Who Knows What?’ in New Venture Teams: Transactive Memory Systems as a Micro-Foundation of Entrepreneurial Orientation," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1320-1347, December.
    34. Sharon Simmons & Johan Wiklund & Jonathan Levie, 2014. "Stigma and business failure: implications for entrepreneurs’ career choices," Small Business Economics, Springer, vol. 42(3), pages 485-505, March.
    35. Gina Dokko & Steffanie L. Wilk & Nancy P. Rothbard, 2009. "Unpacking Prior Experience: How Career History Affects Job Performance," Organization Science, INFORMS, vol. 20(1), pages 51-68, February.
    36. Moreland, Richard L. & Myaskovsky, Larissa, 2000. "Exploring the Performance Benefits of Group Training: Transactive Memory or Improved Communication?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 117-133, May.
    37. M. Diane Burton & Michael S. Dahl & Olav Sorenson, 2018. "Do Start-ups Pay Less?," ILR Review, Cornell University, ILR School, vol. 71(5), pages 1179-1200, October.
    38. Robert A. Baron & Michael D. Ensley, 2006. "Opportunity Recognition as the Detection of Meaningful Patterns: Evidence from Comparisons of Novice and Experienced Entrepreneurs," Management Science, INFORMS, vol. 52(9), pages 1331-1344, September.
    39. Witt, Ulrich, 2000. "Changing Cognitive Frames--Changing Organizational Forms: An Entrepreneurial Theory of Organizational Development," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(4), pages 733-755, December.
    40. William B. Gartner & Kelly G. Shaver & Elizabeth Gatewood & Jerome A. Katz, 1994. "Finding the Entrepreneur in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 18(3), pages 5-9, April.
    41. Michael Roach & Henry Sauermann, 2015. "Founder or Joiner? The Role of Preferences and Context in Shaping Different Entrepreneurial Interests," Management Science, INFORMS, vol. 61(9), pages 2160-2184, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stijn Kelchtermans & Francesca Melillo, 2023. "Taking a Full Career Perspective on the Formation of Co-Founding Teams," GREDEG Working Papers 2023-22, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Louise Lindbjerg & Theodor Vladasel, 2021. "Hiring Entrepreneurs for Innovation," Working Papers 1309, Barcelona School of Economics.
    2. Rocha, Vera & Pozzoli, Dario, 2021. "Give it Another Shot: Startup Experience and the Mobilization of Human Resources in New Ventures," Working Papers 11-2021, Copenhagen Business School, Department of Economics.
    3. Vera Rocha & Luca Grilli, 2024. "Early-stage start-up hiring: the interplay between start-ups’ initial resources and innovation orientation," Small Business Economics, Springer, vol. 62(4), pages 1641-1668, April.
    4. Tali Hadasa Blank & Abraham Carmeli, 2021. "Does founding team composition influence external investment? The role of founding team prior experience and founder CEO," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1869-1888, December.
    5. Seung Hoon D. Chung & Simon C. Parker, 2023. "Founder affiliations: jobseeker reactions and impact on employee recruitment by start-up ventures," Small Business Economics, Springer, vol. 61(1), pages 259-283, June.
    6. Patel, Pankaj C. & Tsionas, Mike & Oghazi, Pejvak & Izquierdo, Vanessa, 2022. "No entrepreneur steps in the same river twice: Limited learning advantage for serial entrepreneurs," Journal of Business Research, Elsevier, vol. 142(C), pages 1038-1052.
    7. Alex Coad & Bram Timmermans, 2012. "Two's Company: Human Capital Composition and Performance of Entrepreneurial Pairs," SPRU Working Paper Series 201, SPRU - Science Policy Research Unit, University of Sussex Business School.
    8. Chong Kyoon Lee & Johan Wiklund & Alejandro Amezcua & Tae Jun Bae & Almantas Palubinskas, 2022. "Business failure and institutions in entrepreneurship: a systematic review and research agenda," Small Business Economics, Springer, vol. 58(4), pages 1997-2023, April.
    9. Chila, Vilma, 2021. "Knowledge dynamics in employee entrepreneurship : Implications for parents and offspring," Other publications TiSEM a1f5d18c-783b-4af6-8414-6, Tilburg University, School of Economics and Management.
    10. Costa, Paula L. & Ferreira, João J. & Torres de Oliveira, Rui, 2023. "From entrepreneurial failure to re-entry," Journal of Business Research, Elsevier, vol. 158(C).
    11. Luca Pistilli & Alessia Paccagnini & Stefano Breschi & Franco Malerba, 2023. "Gender Bias in Entrepreneurship: What is the Role of the Founders’ Entrepreneurial Background?," Journal of Business Ethics, Springer, vol. 187(2), pages 325-346, October.
    12. Zsolt Csáfordi & László Lőrincz & Balázs Lengyel & Károly Miklós Kiss, 2020. "Productivity spillovers through labor flows: productivity gap, multinational experience and industry relatedness," The Journal of Technology Transfer, Springer, vol. 45(1), pages 86-121, February.
    13. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    14. Nigam, Nirjhar & Benetti, Cristiane & Johan, Sofia A., 2020. "Digital start-up access to venture capital financing: What signals quality?," Emerging Markets Review, Elsevier, vol. 45(C).
    15. Daniel Tzabbar & Jaclyn Margolis, 2017. "Beyond the Startup Stage: The Founding Team’s Human Capital, New Venture’s Stage of Life, Founder–CEO Duality, and Breakthrough Innovation," Organization Science, INFORMS, vol. 28(5), pages 857-872, October.
    16. Lanza, Andrea & Simone, Giuseppina & Bruno, Randolph, 2016. "Resource orchestration in the context of knowledge resources acquisition and divestment. The empirical evidence from the Italian “Serie A” football," European Management Journal, Elsevier, vol. 34(2), pages 145-157.
    17. Maribel Guerrero & Jorge Espinoza-Benavides, 2021. "Does entrepreneurship ecosystem influence business re-entries after failure?," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 211-227, March.
    18. Song Lin & Yasuhiro Yamakawa & Jing Li, 2019. "Emergent learning and change in strategy: empirical study of Chinese serial entrepreneurs with failure experience," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 773-792, September.
    19. Xie, Xiao-Yun & Feng, Wen & Hu, Qiongjing, 2020. "Does new venture team power hierarchy enhance or impair new venture performance? A contingency perspective," Journal of Business Venturing, Elsevier, vol. 35(6).
    20. Kaiser, Ulrich & Müller, Bettina, 2013. "Team Heterogeneity in Startups and its Development over Time," IZA Discussion Papers 7284, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:59:y:2022:i:1:d:10.1007_s11187-021-00543-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.