Parikalpana: KIIT Journal of Management

Open Access Open Access  Restricted Access Subscription Access

Partners in Crime:The Risk in Entrepreneurship


Affiliations
1 School of Management, KIIT University, India
2 Dept. of I&TT, FM University, Balasore, India
 

This case study presents a unique case of spectacular growth and dramatic failure of entrepreneurial endeavour. Often the entrepreneurship is a group dynamics rather than a pure individual play. Each individual in the team is not sufficient to fructify a new venture formation alone. At the same time having an organic team from the beginning is difficult. The team formation process would have its own challenges; it would depend more on level of trust between the partners. However, trust can't be taken for granted in a formal organization setting, so there is need for adequate reporting and control mechanism. The entrepreneurial organization can't have byzantine reporting, control and audit procedure, and thus has to depend on the level of trust. Considering this aspect the entrepreneurial organization has to transform itself into a professionally managed organization, but the exact time and context can't be predetermined. If the transformation is not appropriate there is inherent risk to survival. During the start up phase promoters would have role overlap and unclear hierarchy, their actions and motives regarding wealth and power would determine the fate of new venture.

This ethnographic research was the result of interview process of one of the promoters of the company. It is divided into two parts, the first part describes the events that unfolded during the entrepreneurship process and the second part describes teaching note with applicable theories.


Keywords

Team Entrepreneurship, Intention, Conflicts, Risks, Horizontal Accountability.
User
Notifications
Font Size

  • Boyd, N. G., & Vozikis, G. S. (1994). The influence of self-efficacy on the development of entrepreneurial intentions and actions. Entrepreneurship theory and practice, 18, 63-63.

  • Brockhaus, R. H. (1980). Risk taking propensity of entrepreneurs. Academy of management Journal, 23(3), 509-520.

  • Cooney, T. M. (2005). Editorial: what is an entrepreneurial team?

  • Carland, H., Carland, J. W., & Hoy, F. (2002). Who is an entrepreneur? Is a question worth asking. Entrepreneurship: Critical perspectives on business and management, 2, 178.

  • Francis, D. H., & Sandberg, W. R. (2000). Friendship within entrepreneurial teams and its association with team and venture performance. Entrepreneurship: Theory and Practice, 25(2), 5-5.

  • Gerry Segal, Dan Borgia, Jerry Schoenfeld, (2005) “The motivation to become an entrepreneur”, International Journal of Entrepreneurial Behavior & Research, Vol. 11 Iss: 1, pp.42 - 57

  • Gartner, W. B. (1988). Who is an entrepreneur? Is the wrong question. American Journal of Small Business, 12, 11-32.

  • Gartner, W. B. 1990. What are we talking about when we talk about entrepreneurship? Journal of Business Venturing, 5, 15-28.

  • Hoang, H., & Antoncic, B. (2003). Network-based research in entrepreneurship: A critical review. Journal of business venturing, 18(2), 165-187.

  • Kenney, C. D. (2003). Horizontal accountability: concepts and conuicts. Mainwaring, Scott, & Welma, Christopher. Democratic Accountability in Latin America, Oxford: Oxford University Press (Oxford Studies in Democratization), 165, 55.

  • Krueger, N. (1993). The impact of prior entrepreneurial exposure on perceptions of new venture feasibility and desirability. Entrepreneurship: Theory and practice, 18(1), 5-22.

  • Lechler, T. (2001). Social interaction: A determinant of entrepreneurial team venture success. Small Business Economics, 16(4), 263-278.

  • Manimala, M. J., & Pearson, A. W. (1998). Entrepreneurial motivation revisited.

  • Morris, M. H., Avila, R. A., & Alien, J. (1993). Individualism and the modern corporation: Implications for innovation and entrepreneurship. Journal of management, 19(3), 595-612.

  • O’Donnell, A., Gilmore, A., Cummins, D., & Carson, D. (2001). The network construct in entrepreneurship research: a review and critique. Management Decision, 39(9), 749-760.

  • Pesqueux, Y. (2013). Network and Entrepreneurship. Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship, 1354-1358.

  • Ruef, M. (2010). The entrepreneurial group: Social identities, relations, and collective action. Princeton University Press.

  • Shane, S. A. (2003). A general theory of entrepreneurship: The individualopportunity nexus. Edward Elgar Publishing.

  • Sequeira, J., Mueller, S.L., and Mcgee, J. E. (2007). The Influence of Social Ties and Self-Efficacy, in Forming Entrepreneurial Intentions and Motivating Nascent Behavior. Journal of Developmental Entrepreneurship, 12, 275 (2007). DOI: http://dx.doi.org/10.1142/ S108494670700068X. http:// www.worldscientific.com/doi/abs/10.1142/ S108494670700068X

  • Slotte Kock, S., & Coviello, N. (2010). Entrepreneurship research on network processes: A review and ways forward. Entrepreneurship Theory and Practice, 34(1), 31-57.

  • https://en.wikipedia.org/wiki/Principal%E2%80%93agent_problem

  • https://en.wikipedia.org/wiki/Moral_hazard

  • http://www.qualitative-research.net/index.php/fqs/article/view/1589/3095


Abstract Views: 413

PDF Views: 8




  • Partners in Crime:The Risk in Entrepreneurship

Abstract Views: 413  |  PDF Views: 8

Authors

Brajaballav Kar
School of Management, KIIT University, India
Prasanta K. Patra
Dept. of I&TT, FM University, Balasore, India

Abstract


This case study presents a unique case of spectacular growth and dramatic failure of entrepreneurial endeavour. Often the entrepreneurship is a group dynamics rather than a pure individual play. Each individual in the team is not sufficient to fructify a new venture formation alone. At the same time having an organic team from the beginning is difficult. The team formation process would have its own challenges; it would depend more on level of trust between the partners. However, trust can't be taken for granted in a formal organization setting, so there is need for adequate reporting and control mechanism. The entrepreneurial organization can't have byzantine reporting, control and audit procedure, and thus has to depend on the level of trust. Considering this aspect the entrepreneurial organization has to transform itself into a professionally managed organization, but the exact time and context can't be predetermined. If the transformation is not appropriate there is inherent risk to survival. During the start up phase promoters would have role overlap and unclear hierarchy, their actions and motives regarding wealth and power would determine the fate of new venture.

This ethnographic research was the result of interview process of one of the promoters of the company. It is divided into two parts, the first part describes the events that unfolded during the entrepreneurship process and the second part describes teaching note with applicable theories.


Keywords


Team Entrepreneurship, Intention, Conflicts, Risks, Horizontal Accountability.

References





DOI: https://doi.org/10.23862/kiit-parikalpana%2F2017%2Fv13%2Fi1%2F151280