Entrepreneurial exit can be considered one of the most important moments in the entrepreneurial life cycle. However, within the literature, this importance was only recognized recently. Research regarding entrepreneurial exit went through a few stages; Firstly, the focus was on re-defining entrepreneurial exit and giving it a place in the life cycle. Entrepreneurial exit used to be an event that was associated with failure. Right now, not perse. It’s an event with many choices and can be studied on many levels. Within this study, exit will be looked at the level of the entrepreneur. Secondly, the role of the entrepreneur was considered; this includes variables such as intentions and personality traits. Lastly, state-of-the-art research seems to be looking at team dynamics. Currently, the main focus points were on homogeneity within the team. This study is an exploratory research which tries to link team dynamics and entrepreneurial exit. The found connections can be used for further studies.
To achieve this, the main research question for this study is formulated as follows:
How do team-dynamics in technical firms affect the entrepreneur's intention to exit the start-up and the chosen exit strategy?
To answer the research question, a qualitative method was used, namely the comparative case study by using contrasting cases. The case studies are created by conducting interviews with management team members of technological start-ups/scale-ups. This contrast between cases is created by using a quadrant that divides the cases into “entrepreneurial exit incidents” and starting and more developed start-ups/scale-ups. Furthermore, the semi-structured interview is created by doing a literature review. Out of this literature review, multiple propositions were derived, and a conceptual model was formed. Afterwards, the propositions and conceptual model were the guidelines for the interviews. Lastly, the literature review was based on the sub-research questions.
12 case studies were formed, which were analyzed first individually and second cross-case. For the individual analyses, an open code method was used. For the cross-case, axial coding. Lastly, to find something coherent, selective coding was used.
The conceptual model created with the literature cannot be supported by the case studies. However, out of the cross-case analysis, new interesting hypothesis have been formed. Such as 1. The friendship of the founding team and how they met are directly correlated with the homogeneity of the team. 2. Conflict in the early stages most happens because of a lack of entrepreneurial experience and an unclear separation of tasks. Furthermore, homogenous teams are more likely to have an unclear separation of tasks. 3. Conflict in the later stages of the companies is mostly related to different core values between management team members.
Each of these relationships could be interesting for future research, such as how fast certain milestones are reached within a homogenous founding team and a heterogenous founding team. How could this early unclear separation of tasks be improved? This could be a bigger issue for homogenous teams where people have similar skills and interests. Lastly, how could management team members be selected for long-term value and minimal conflict?