Shared Vision and Founding Team Reconfigurations: The Role of Prior Work Relations
A shared vision is a core element of collective leadership in new ventures. However, little is known about the influence of a shared vision on reconfigurations of founding teams, although these are often critical for venture growth. Building on social capital theory, this study explores how the cofounders’ early shared vision affects subsequent executive team changes. It also considers cofounders’ prior relational ties since these can influence the initial team’s willingness to change. Based on data from 136 new ventures, results show that an early shared vision reduces the likelihood of cofounder exits and concurrent cofounder exits and executive entries. Cofounders’ prior work relations further strengthen the stabilizing effect of their shared vision, reducing the probability of executive entries and concurrent cofounder exits and executive entries. Findings contribute to a better understanding of shared leadership, founding team changes and the interplay of social capital dimensions in new ventures.