Co-founder Selection – A Decision to Balance Choice-Source Determinants

Abstract

Although previous research has covered the mechanism of entrepreneurial founding team formation, it has not distinguished the formational mechanism based on the entrepreneurial expertise of the lead founder. Using conjoint analysis and semistructured interviews, this study investigates which criteria dominate the decision of cofounder selection amongst i) resource seeking ii) interpersonal attraction or iii) need for familiarity. The preference to work with others may unfold, however, there is regularly a point at which an individual must make a clear choice. We expect to provide significant insights into EFT formation by focusing on this clear choice. We maintain that even if two or more attributes influence the choice, it is improbable that those attributes will have equal value. We look at the stated preference for cofounders rather than inferring choice based on existing group composition. In this paper the choice process is isolated by excluding other socio-organizational pressures that might influence an existing founding team's composition. The findings of this study provide a systematic conceptualization and ranking of the various criteria that affect the formation of entrepreneurial founding teams.