Entrepreneurial team locus of control: diversity and trust
Abstract
Purpose
The purpose of this paper is to examine how internal locus of control (LOC) as a well-established entrepreneurial personality trait at team level impacts team performance (effectiveness and efficiency) in Austria. In addition, it investigates the interaction effects of LOC diversity and affective trust on the internal LOC-performance relationship.
Design/methodology/approach
Data originated from 44 entrepreneurial teams based in nine business incubators in Austria. Partial least squares (PLS) structural equation modelling was used to estimate the model.
Findings
Results indicate that higher internal LOC at team level promotes entrepreneurial team effectiveness and efficiency. However, team efficiency is increased when such teams possess a high internal LOC and low LOC diversity. Affective trust is identified as a crucial component in enhancing entrepreneurial team effectiveness, especially when the team has a high internal LOC.
Originality/value
This study extends research on internal LOC at team level by investigating it as a predictor of entrepreneurial team effectiveness and efficiency. Second, it systematically analyses if and how diversity in internal LOC affects team performance in an entrepreneurial team context. The paper takes a pioneering step by testing a key methodological contribution of addressing the inherent bias in measuring diversity of small teams. Finally, it is one of the first studies to show not only the importance of affect in general, but also the trust based on affect for entrepreneurial team dynamics.
Keywords
Acknowledgements
The authors would like to thank the Jubiläumsfond of the Österreichische National Bank for the financial support of this research project (No. 12451/No. 14173).
Citation
Saud Khan, M., J. Breitenecker, R. and J. Schwarz, E. (2014), "Entrepreneurial team locus of control: diversity and trust", Management Decision, Vol. 52 No. 6, pp. 1057-1081. https://doi.org/10.1108/MD-06-2013-0349
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited