Fast-growth firms and entrepreneurial teams : an investigation of the structures and strategies employed by firms in the U.S. and Irish software industry

Abstract

A body of research exists which suggests that firms founded by entrepreneurial teams are more likely to be fast-growing than firms founded by individuals. The objective of this work was to investigate the structures and strategies that were employed by small firms, and which combination of these might differentiate fast-growth firms firom non-fast-growth firms, and firms founded by entrepreneurial teams from firms founded by individuals. In particular, the work sought to identify any unique coupling of structure and strategy that distinguished fast- growth firms founded by entrepreneurial teams from all other enterprises. As little work had been done on the concepts and consequences of entrepreneurial teams, this study began by examining the relationship between entrepreneurial teams, small firms, and fast-growth firms. An entrepreneurial team was defined as “two or more individuals who have a significant financial interest and participate actively in the development of the enterprise”. Firms were then classified into fast-growth firms founded by entrepreneurial teams, fast-growth firms founded by individuals, non-fast-growth firms founded by entrepreneurial teams, and non- fast-growth firms founded by individuals, for the purpose of detailed singular and comparative investigation. A detailed exploration of the literature brought the decision to examine each of the firm classifications through structures (using the work of Bums and Stalker, 1961) and strategies (using the work of Mintzberg, 1979).