Entrepreneurs make a series of decisions in order to explore and pursue opportunities they have identified (Cuhna, 2007). Decision making is a central part of teamwork (Glaser, 1996) and teams are believed to perform better and more effectively in decision making than individuals (Conrath, 1966).
A decision making process leading to superior performance depends on how information is perceived and processed (Dahlin et al., 2005; Gibson, 2001). Team size influences the diversity of teams’ perspectives, furthermore each member increases access to information sources through education, experience or social contacts. Teams are, therefore, able to collect more information on a broader range of functional areas (Dougherty, 1992). Teams are able to explore information more in-depth due to their increased ability to exchange and discuss information, leading to a more profound understanding of implications of their decision alternatives (Gibson, 2001). These decisions can have a positive effect on venture performance (West, 2007). This is especially true for start-ups in complex, unstable and dynamic markets (e.g. IT industry) that demand a broad grasp of the environment and a deep understanding of the relevant components.
Kleinknecht, Sven; Laspita, Stavroula; and Klandt, Heinz
"PERFORMANCE AND DECISION MAKING: HOW DIFFERENT ARE TEAM START-UPS AND THE LONELY HEROES? (INTERACTIVE PAPER),"
Frontiers of Entrepreneurship Research: Vol. 30
, Article 11.
Available at: https://digitalknowledge.babson.edu/fer/vol30/iss10/11