The Effect of High-Velocity Environments on the Team Dynamics in New Ventures

Abstract: In today’s society people are influenced by technological developments. Technology changed the consumer’s behavior, but also the way companies evolved over time. Nowadays, technology is accessible for everyone, which leads to fast changing environments with a lot of competition. There are limited studies that focus on teams of new ventures in comparison to the lone entrepreneur. However, there are only a few studies that explain how the new ventures of today, and especially their founding team, are affected by the rapid changes in their high-velocity environment. The aim of this research is to provide new insights into team dynamics theory from an angle of high-velocity environments. This master thesis answers the following research question: “What challenges do the founders of New Venture Teams face in high-velocity environments and how do they cope with these challenges?” In order to answer this research question, the authors used a qualitative research approach. Three new ventures are studied within this paper, that are operating in a high-velocity environment. Several different themes were codified both theoretically and empirically derived. The data and findings are discussed together with previous theories of highvelocity environments and team dynamics. The findings show that the social relationship among the team members from before starting the venture has a big impact on how they overcome their challenges. Secondly, open communication and honesty are key to create a shared mindset with the co-founder, which is crucial in a time where teams often work from a distance. Keywords: high-velocity environments, team dynamics, founding teams, new ventures, entrepreneurship, strong and weak ties, decision-making process, conflicts