Team efficacy in new ventures: Antecedents of team efficacy and the effect of team efficacy on firm aspiration level
This study provides insight into antecedents of team efficacy, and the influence of team efficacy on firm aspirations. It examines the relations between team-specific factors and team efficacy more deeply than has been done previously, and in the context of new ventures. This study used a web-based survey, soliciting respondents via email from entrepreneurship email groups in 5 different cities. The resulting set of 73 observations represent management teams in new ventures that are less than 6 years old.
I found that team success, team members' prior success, and the functional capabilities of the team contribute to team efficacy. Examining all three simultaneously allowed me to see that each had an individual effect, above and beyond the other two. Past experience and cumulative functional skills have significant effects beyond how the team is doing. It suggests that how people put their teams together and how much they know about and respect one another's skills and backgrounds is important to team confidence on an ongoing and long-lasting basis despite interim failings or setbacks.
I also examined the relationship between team efficacy and firm aspiration level, specifically within the domain of management teams of new ventures. I found that team efficacy did, indeed, influence the aspiration level of the firm. More specifically, I found that a team member's confidence in the team's future success influences the aspiration level of the firm over and above the aspiration level based on the firm's current performance in those areas. Investors interested in evaluating and encouraging goals of high growth rates in firms may benefit from understanding more about what leads to high aspiration levels in new ventures.
Polls & surveys;