Autonomy brings the best out of entrepreneurs

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Researchers believe that the entrepreneurial team may do better with Automoy. However, there are many types of autonomy.

Hamburg: Researchers believe that the entrepreneurial team may do better with Automoy. However, there are many types of autonomy.

The study is published in the ‘Organization Science Journal’. Victoria Boss and Christoph Ihl, both from Hamburg University of Technology, and Linus Dahlander and Rajashree Jayaraman from ESMT, both examined how two types of autonomy affected the performance of entrepreneurial teams: choosing project ideas to work on and Choosing team members to work with.

Researchers ran a field experiment involving 939 students on a start-up entrepreneurship course in which students were organized into teams to develop and pitch business ideas. Individuals were assigned to one of four scenarios: 1) choosing their team members and ideas, 2) choosing their team members, 3) choosing their idea, or 4) neither their team nor the idea. to select.

In teams, students develop an entrepreneurial pitch deck, a presentation intended to help fictional venture capitalists secure funding. Pitch decks were evaluated on six criteria: innovation, feasibility, market potential, likelihood of success, likelihood of invitation to follow-up and investment amount.

The results showed that teams with autonomy to choose ideas or team members outperformed teams without the autonomy to choose. However, the effect of choosing ideas was significantly stronger than the effect of choosing a team. Also, these benefits were not seen for teams that were granted full autonomy over choosing both the ideas and the teams.

Professor Dahlander said, “Choosing ideas or teams can better match the interests of team members and ideas with prior network contacts between team members. At the same time, providing autonomy increases a sense of confidence whose There can be a motivational effect. However, if confidence rises above a critical threshold, teams may feel overconfident and exhibit a lack of complacency and attention. This points to the possibility that those who have Having chosen both the teams and the ideas, he very soon experienced too much confidence, undermining subsequent efforts.”

These findings are important for the commercialization of entrepreneurship, particularly incubator and accelerator programs, most of which give aspiring entrepreneurs a choice on both ideas and team members. These results suggested that providing complete autonomy over choosing ideas would yield the highest performance results.

First Published:December 4, 2021, 2:56 am

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