http://www.smallbusinessinstitute.biz A B S T R A C T Keywords: Journal of Small Business Strategy 2019, Vol. 29, No. 01, 1-15 ISSN: 1081-8510 (Print) 2380-1751 (Online) ©Copyright 2019 Small Business Institute® w w w. j s b s . o rg Introduction Rainer Hensel1, Ronald Visser2, 1The Hague University of Applied Sciences, Netherlands, r.w.hensel@hhs.nl 2The Hague University of Applied Sciences, Netherlands, r.c.visser@hhs.nl Explaining effective team vision development in small, entrepreneurial teams: A shared mental models approach Shared mental models, Team vision, Co-creation process Organizing entrepreneurial collaboration in small, self-directed teams is gaining popularity. The underlying co-creation processes of developing a shared team vision were analyzed with a core focus on three underlying processes that originate from the shared mental models framework. These processes are: 1) the emergence of individual visions and vision integration, 2) conflict solving, and 3) rede- signing the emerging knowledge structure. Key in the analysis is the impact of these three processes on two outcome variables: 1) the perceived strength of the co-creation process, 2) the final team vision. The influence of business expertise and the relationship between personality traits and intellectual synergy was also studied. The impact of the three quality shared mental model (SMM) variables proves to be significant and strong, but indirect. To be effective, individual visions need to be debated during a second conflict phase. Subsequently, redesigning the shared knowledge structure result- ing from the conflict solving phase is a key process in a third elaboration phase. This sequence positively influences the experienced strength of the co-creation process, the latter directly enhancing the quality of the final team vision. The indirect effect reveals that in order to be effective, the three SMM processes need to be combined, and that the influence follows a specific path. Furthermore, higher averages as well as a diversity of business expertise enhance the quality of the final team vision. Significant relationships between personality and an intellectual synergy were found. The results offer applicable insights for team learning and group dynamics in de- veloping an entrepreneurial team vision. APA Citation Information: Hensel, R., & Visser, R. (2019). Explaining effective team vision development in small, entrepreneurial teams: A shared mental models approach. Journal of Small Business Strategy, 29(1), 1-15. Much of the mainstream entrepreneurship litera- ture focuses on the individual entrepreneur. However, a growing body of research acknowledges the collec- tive nature of entrepreneurship (Misganaw, 2018). In line with these research results, in practice, organiz- ing entrepreneurial activities in small, non-hierarchi- cal teams is gaining popularity (Ernest, Matthew, & Samuel, 2015; Hensel & Visser, 2018; Hmieleski & Ensley, 2007; Kellermanns, Walter, Lechner, & Floyd, 2005; Lukes & Stephan, 2017; Unger, Rauch, Frese, & Rosenbusch, 2011). The following three points ex- plain the growing scholarly interest in entrepreneurial teams. First, significant portions of the new ventures are founded by teams (German Startups Association, 2016). Second, entrepreneurial teams tend to outper- form solo starters (Baum & Silverman, 2004). And third, new venture performance in complex environ- ments is impacted by unifying entrepreneurial behav- iors in autonomous teams, embedded in flat, non-hi- erarchical organizational structures (Cooney, 2005; Hmieleski & Ensley, 2007; Kellermanns et al., 2005; Lechner & Floyd, 2012). One of the core processes in entrepreneurial teams is the co-creation of a shared team vision (Dyer, Gre- gersen, & Christensen, 2008; Dyer, Gregersen, & Chris- tensen, 2011). A multidimensional vision on business opportunities and their associated business strategies should be regarded as pivotal in innovative entrepre- http://www.smallbusinessinstitute.biz http://www.jsbs.org 2 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 neurship. Innovative entrepreneurship is defined as ex- ploring and exploiting new products and new markets, developing new business models or creating new mar- kets for existing products (Dyer et al., 2008; Dyer et al., 2011). Evidence indeed exists that entrepreneurial collaboration enhances innovative capacities, which again fuel entrepreneurial effectiveness. This effect is due to 1) more and better human capital, by example more (diverse) experience, knowledge and skills; 2) social capital (larger and more diverse network); 3) greater learning capacity; 4) greater risk sharing; and 5) high quality shared mental models (SMMs). Research support exists that indeed small firm survival and success may depend on taking advantage of hu- man, social and intellectual capital (Greene, Brush, & Brown, 1997; Sequeira, Weeks, Bell, & Gibbs, 2018). These SMMs refer to the overlapping mental repre- sentation of knowledge by team members, frequently labeled as the shared cognitive map (Badke-Schaub, Neumann, Lauche, & Mohammed, 2007; Sarasvathy & Dew, 2013; Venkataraman, Sarasvathy, Dew, & For- ster, 2012). The ‘Shared Mental Models’ (SMM) framework is highly relevant in this context (Mathieu, Heffner, Goodwin, Salas, & Cannon-Bowers, 2000). The un- derlying processes in developing SMMs help team members to develop a multidimensional-shared team vision, which can be characterized as a shared cog- nitive representation of all relevant relationships and causalities (Jonker, Van Riemsdijk, & Vermeulen, 2011; Klimoski & Mohammed, 1994; Mohammed, Ferzandi, & Hamilton, 2010). Teams in general, whose members develop high quality, shared knowledge structures or SSMs, performed better in defining strate- gic action and acting on it (DeChurch & Mesmer-Mag- nus, 2010; Xiang, Lu, & Gupta, 2013). The quality of these shared knowledge structures or SSMs depends highly on a comprehensive, multidimensional-shared cognitive representation on strategic goals, team tasks, key work processes, and key performance indicators. Moreover, a shared team vision, based on the strategic consensus on organizational goals, is considered to be a very important mechanism in the effectuation of an organizational strategy (Knight, Pearce, Smith, Olian, Sims, Smith, & Flood, 1999). Teams that perform well in ambiguous and complex circumstances need to be highly coordinated, in order to respond flexibly and deploy core competencies in a timely manner (Ensley, Hmieleski, & Pearce, 2006). An SMM is therefore a key issue, functioning as a strategically relevant co- ordination mechanism in innovative entrepreneurship. The close associations between the SMM frame- work, developing a shared entrepreneurial team vision and strategic decision making in teams is probably best illustrated by the definition of SMMs: “SMMs are de- fined as the knowledge structures held by members of the team that enable them to form accurate explana- tions and expectations for the task, and, in turn, to co- ordinate the actions and adaptive behavior of the task in two other team members’ actions” (Zhou & Wang, 2010, pp. 434). Although the SMM framework seems helpful in understanding how entrepreneurial teams transform available resources (e.g. human and social capital) into shared team visions and business models, surprisingly few empirical studies have been conduct- ed in the context of entrepreneurship. In this context, an additional challenge arises. Individuals are attracted to entrepreneurship or participate in startups in order to develop their visions and talents in their own au- tonomous and authentic way (Baum, Frese, & Baron, 2014). However, when entrepreneurship is organized in small teams or is founded by multiple entrepreneurs, individuals have to conform to the group with the con- sequence of being forced to give up their autonomy. This highlights the necessity of understanding the pro- cess of developing a team vision in the context of en- trepreneurship in small teams or informally, non-hier- archically organized small businesses. Theoretical Framework Scientific concerns, based on meta studies, have been expressed on the strong diversity in theoretical perspectives used in analyzing the SMM framework, leading to quite some theoretical misunderstandings and a dysfunctional diversity in theoretical concep- tualizations of the SMM framework itself (see for an overview in DeChurch & Mesmer-Magnus, 2010). The lack of specification of the theoretical lens in studying the SMM framework is key in this criticism. Conse- quently, a methodological claim exists. It is claimed, in the research on the SMM framework, that a classifica- tion system of the core theoretical perspective should be applied (DeChurch & Mesmer-Magnus, 2010). When applying this classification system, three major categories should be used: 1) the elicitation method, measuring the quality of the cognitive map or specific components of the emerging knowledge structure, 2) the structure of the presentation between team mem- bers, representing the degree of association of the dis- tinct cognitive components between team members, and 3) the representation of emergence, measuring the team climate aiming at a strong shared consen- sus in team perceptions. In this paper, the core focus 3 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 is on the third perspective, analyzing the exact nature of the co-creation process and climate, in develop- ing a shared team vision, and studying the influence of a team climate. Conflict solving, feedback mech- anisms and creative elaboration and redesign mech- anisms are key issues in studying the team climate. This core focus on the process and the climate of co-creating a shared team vision is also based on the following theoretical criticism: the majority of re- search in studying the SMM framework mainly focus- es on the team’s emerging knowledge structure or the quality level of association of the cognitive map, omit- ting highly relevant issues of the co-creation process (Preller, Breugst, & Patzelt, 2016; Van den Bossche, Gijselaers, Segers, Woltjer, & Kirschner, 2011). Based on the theoretical consideration of scholars Kellerman et al. (2005), Sarasvathy & Dew (2013), Van den Boss- che et al. (2011), and Venkataraman et al. (2012), a model will be developed and tested hypothesizing that three specific phases in the co-creation process exist. The first phase is characterized by an emerging knowledge structure, its quality closely related to the creativity of the emerging individual visions and the capacity to create a holistic overview of highly diverse innovative views and perspectives. Phase two is hypothesized to be a cognitive conflict phase, in which debating on differences in visions or perspectives and effective feedback mechanisms is highly relevant. The construction of a second phase is very much based on studies, revealing that the quality of the emerging knowledge structures and emerging visions only enhances a team performance when teams are able to timely activate effective cognitive conflict solving skills (Van den Bossche et al., 2011). Howev- er, an important distinction should be made between cognitive conflicts and affective conflicts (Van den Bossche et al., 2011). While cognitive conflicts refer to differences and subsequent clashes in perspectives and visions, affective conflicts are related to the un- derlying values and their associated emotions, which are often strong and intense. The third phase is an elaboration phase. This is based on studies and theo- retical considerations that high-quality team member interactions (deep listening and intellectual synergy) should be aimed at the redesign and redevelopment of the emerging knowledge structure. The rationale of including this third phase follows research results and theoretical considerations, showing that a redevel- opment and redesign of a shared team vision of the business model is highly relevant for entrepreneurial effectiveness, especially when innovative capacities are demanded (Sarasvathy & Dew, 2013; Talaulicar, Grundei, & Werder, 2005; Venkataraman et al., 2012). However, little is known about these insights with re- spect to the co-creation of an entrepreneurial vision in small self-directed teams. It should be underscored that all the above listed considerations only hold for entrepreneurial activities in complex and ambiguous environments (for an over- view see: (Kellermanns et al., 2005). In this sense, as previously explained, the research results of this study can only be generalized to innovative entrepreneurship that has to operate and compete in such environments. To create an overview, the three core SMM pro- cesses in this study include: 1. The cognitive, emerging knowledge structure (based on innovative and creative emerging indi- vidual visions and the capacity to integrate a high diversity of visions into a team vision). 2. Constructive cognitive, conflict solving and feed- back. 3. Team members’ interaction directed on the rede- sign and redevelopment of the emerging knowl- edge structure. These three processes will form the three major (endogenous) variables of the SMM framework. It will be analyzed whether the sequence of the three SMM endogenous variables impact two dependent variables or success criteria including: 1. The perceived strength of the co-creation pro- cess. 2. The quality of the final shared team vision. It is hypothesized that a specific path exists. More- over, it will be tested whether the perceived strength of the co-creation process is both a dependent and independent variable. This implies that the three en- dogenous SMM variables will impact the perceived strength of the co-creation process, the latter enhanc- ing the quality of the final team vision. Although it is often assumed that the perceived strength of the co-creation positively influences an entrepreneurial team performance, little scientific evidence seems available to support this direct relationship, especially when the perceived strength of the co-creation process is measured by all three SMM variables listed above (DeChurch & Mesmer-Magnus, 2010). 4 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 Close Associations of the Cognitive Map Between Team Members There also exists another major theoretical com- plexity. As previously mentioned, the levels of associ- ation or closeness of the cognitive map between team members is frequently applied as a theoretical lens in analyzing SMMs. The central hypothesis in these stud- ies is that closer associations strengthen the quality of SMMs (see for an overview in DeChurch & Mes- mer-Magnus, 2010). However, some research and the- oretical considerations seem to contradict the scientif- ically grounded application of this measure. Research has revealed that a close association has a mitigating effect on the team capacity to develop a team vision in a multi-faceted or multidimensional way (see for an overview in: Kellermanns et al., 2005). Further- more, a diversity in opinions, a disagreement as op- posed to a strong shared group conformity, as well as a continuous open discussion and disagreement have proved to have an enhancing effect on a team per- formance in complex environments (see for an over- view in: Kellermans et al., 2005). Moreover, a strong conformity towards group consensus combined with conflict avoidance hampers the team performance in analyzing ambiguous information, both representing important dysfunctional group processes in complex environments (LePine, Erez, & Johnson, 2002). Con- sequently, in this study, the measure of closeness of associations will be replaced by two other measures: 1) the team capacity to integrate a strong diversity of individual visions into a holistic overview, and 2) the enriching influence of an ongoing disagreement about the multi-faceted character of the shared team vision. The first variable will be used as a measure of the first phase, in which the knowledge structure emerges, and the second as a measure of the conflict-solving phase. Business Expertise Another key issue in this paper is an analysis of the influence of business knowledge. In this method- ological approach, we follow scholars such as Unger et al. (2011) and Zhao, Seibert & Lumpkin (2010), ar- guing that when specific entrepreneurial success cri- teria are analyzed, the influence of competencies or entrepreneurial qualities should be compared to the en- hancing effect of business expertise. In this study, the influence of collaboration competencies originating from the SMM framework will be compared to the im- pact of business knowledge. This is based on research showing that business expertise has a slightly higher enhancing effect on general entrepreneurial success when compared to the influence of competencies, soft skills or entrepreneurial qualities (Zhao et al., 2010). Intellectual Synergy in the Process of SMM Devel- opment and Personality Very little is known about intellectual synergy in the context of knowledge innovation, or the develop- ment of a team vision in an entrepreneurial context. An intellectual synergy, often labeled as intellectual stim- ulation, is a key process in developing an entrepreneur- ial team vision, especially when innovation capacities are demanded (Dyer et al., 2008; Dyer et al., 2011; Sarasvathy & Dew, 2013). To enhance our theoretical understanding of an intellectual synergy, we analyzed the influence of personality traits on the intellectual synergy between team members. As explained earlier, we will only study small, self-directed teams, which implies that the research results are of interest mainly for this entrepreneurial context. This is based on the following three reasons. First, a strong heterogeneity of entrepreneurial teams exists. Claims of strong uni- formity in entrepreneurial teams are commonly held to be a myth (Misganaw, 2018), and therefore the nature of the studied team should be specified. Second, in- novative entrepreneurial capacities of teams relate to their levels of self-directedness and autonomy (Ensley et al., 2006). And third, the co-creation process team size matters. Learning and developing capacities in teams with a high number of team members are quite limited (Van den Bossche et al., 2011). Core research question: How do the Shared Mental Model processes relate to the perceived strength of the co-creation process and to the final team vision? Sub-research question 1: What is the impact of 1) business expertise and 2) per- sonality traits related to an intellectual synergy, on the perceived strength of the co-creation process and the final team vision? Sub-research question 2: Is personality related to an intellectual synergy in the process of elaborating an emerging entrepreneurial knowledge structure? Method The model is based on data collected among un- 5 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 dergraduate students (N=97, 25 teams) of an entrepre- neurial business program. To design a more realistic entrepreneurial research context, 25 groups of students were allocated to real retailers. All these retailers were in great need of an innovative digital marketing strate- gy, with a strong focus on the use of social media (Res- nick, Cheng, Simpson, & Lourenço, 2016). The major reason to select this cohort was the availability of a multi-rater judgment on expertise lev- els, and a very comparable level of entrepreneurial ex- perience. Ninety-eight percent of the cohort succeeded in accomplishing four courses with real entrepreneur- ial activities, executing entrepreneurial skills in the prelaunch and launch phases of a small, self-directed team. Moreover, and maybe more importantly, by the mandatory nature of this research context the response rate was 100%. An 80% response rate is the absolute minimum for a valid and reliable team analysis, when individual scores are reciprocal interdependent (Kirk- man, Tesluk, & Rosen, 2001; McNeish, 2017). Be- cause the analysis of the co-creation process demands a small group size (Van den Bossche et al., 2011), the size of the allocated groups varied between three and five students (M=3.9; SD:=0.7). A questionnaire was designed to measure the three endogenous SMM latent variables. Its validity will be tested by a confirmative factor analysis using MPlus 7.4 software. Full explanation of the measures of these three endogenous SMM variables are revealed in Fig- ure 1, presenting the final model. A structural equation model (MPlus 7.4 software) was developed and tested to understand and explain how three processes, sup- porting the construction of SMMs, relate to the (within groups) aggregated perceived strength of the team-pro- cess, as well to the quality of the final shared team vision. The quality of the shared, final team vision is constructed by the sum of two scores – the aggregated ‘within teams’ judgment provided by the team mem- bers themselves and the supervisor’s judgment on this final team vision – divided by two. Because the judgments of the individuals proved to be reciprocally interdependent, it is important to mention that the response rate was 100%. An 80% re- sponse rate is the demanded minimum for Personality All participants of the study completed an en- tire extended version of a Big 5 personality test, the measurement instrument being completely based on the official Five Factor Model of personality (Barrick, Mount, & Judge, 2001; McCrae & Costa Jr, 1997). This instrument measures the Big 5 domain scales as well as the Big 5 sub-scales, often labeled as the facets. The use of the facets next to the domains is based on research showing that models studying entrepreneur- ial behaviors, social learning and innovative behaviors should include the Big 5 facets next to the domains (Hensel & Visser, 2018; Schneider & Smith, 2004). Averages as well as standard deviations of the Big 5 domain and facet dimensions will be included in the model. Business Expertise To study the influence of business expertise, the aggregated group means as well as the aggregated stan- dard deviation (diversity) of expertise levels will be in- cluded in the model. This is with the aim to analyze whether next to knowledge levels (means) a strong(er) diversity (standard deviation) impacts the two exog- enous dependent variables, being the strength of the perceived co-creation process and the final shared team vision. The grade-point average (GPA) is used to measure expertise levels. The GPA, a multi-rater judg- ment, is considered to be a valid and reliable measure of expertise levels (Poropat, 2009; Richardson, Abra- ham, & Bond, 2012). Results The confirmative factor analysis (CFA) resulted in strong support for the use of the three latent vari- ables, the three endogenous dimensions of the SMM framework (RMSEA:0.76; CFI: 0.96/TLI:0.95; SRMR:0.45). Furthermore, the second order CFA of the Big 5 personality test proved to have agreeable in- dices (RMSEA:0.79; CFI:0.90/TLI:0.91; SRMR:0.68). The CFA of the final model revealed that the quality of the emerging knowledge structure depends highly on innovative, creative visions, but especially on the team capacity to integrate a strong diversity of individual vi- sions into a holistic team vision (estimated factor load- ing: 0.65***). This also holds for the item disagree- ment enriching a multifaceted team vision. It proved to be an important measure of the quality of the con- flict-solving phase (estimated factor loading: 0.81**). The final model proved to have acceptable and good fit indices: RMSEA: 0.067; CFI: 0.95/TLI:0.94; SRMR: 0.064. The full model is on the next page. In Table 1a, all the direct effects of the full final model are present- ed. Table 1a reveals that no direct relationships exist between the final shared team vision and the three la- 6 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 Table 1a Direct effects of the 3 SMM variables on the final shared team vision (estimated (stand.) R-square = 0.66) Final shared team vision on: Estimated Predictive Strength Two- tailed P-value Perceived strength of the co-cre- ation process 0.61 0.00 Quality emerging individual visions/vision integration -0.08 0.71 Conflict solving -0.36 0.08 Quality team member interaction in elaboration process 0.49 0.09 tent (endogenous) SMM variables. The final model, presented in Figures 1 and 2 (overview) shows that the effects of all three SMM variables on the final team vision is strong, significant, but indirect. To create an overview, a selection of the three in- dependent (endogenous) SMM variables, the two (ag- gregated) measures of business expertise, and the two (aggregated) outcome (exogenous) variables of the model are presented in Figure 2. Figures 1 and 2 reveal that the perceived strength of the co-creation process is directly related to the quality of the final team vision, when 1) the quality of the emerging knowledge structure, the variables, 2) conflict solving, and 3) quality interaction in elaborat- ing on the emerging knowledge structure are included in one model. As hypothesized, the perceived strength of the process proves to be a dependent as well as an independent variable. This implies that the positive influence of all three SMM variables runs through (is completely mediated by) the perceived strength of the process. This means that after successfully executing three specific phases in the co-creation process, a sig- nificant enhancing effect is realized on the team mem- bers’ perceived strength of the process. The perceived strength of the co-creation process is directly and strongly related to the final team vision with a strong regression weight: 0.57. An overview of the specific paths of the indirect (mediation) effects is presented in Tables 1b to 1d. The specific order of the SMM variables in the model is illustrated by pointing out that the effect of the first SMM variable, the quality of the emerging knowl- edge structure on conflicting solving/feedback, is di- rect and strong (0.91***), just as the effect of conflict- ing solving/feedback on the quality of team members’ interaction in the elaboration process (0.9***). The estimated proportion explained variance (R-square) of the first dependent variable, the perceived strength Table 1b Indirect effects of the SMM variable ‘quality emerg- ing individual visions/ vision integration’ about the quality of the final shared team vision Table 1c Indirect effects of the SMM ‘conflict solving/feedback’ on the quality of the final rated team vision Table 1d Indirect effects of the SMM variable ‘quality team in- teraction’ in the redesign and redevelopment process on the quality of the final rated team vision Redesigning an emerging knowledge structure indirect effect on: final shared team vision Estimated predictive strength Two-tailed P-value Total 0.039 0.86 Indirect 0.4 0.02 Specific (path) indirect: Quality interaction in elaboration process Strength of the co-creation process 0.4 0.02 Conflict solving/feedback indirect effect on: final shared team vision Estimated predictive strength Two-tailed P-value Total 0.39 0.20 Indirect 0.37 0.53 Specific (path) indirect: Conflict solving Quality interaction in elaboration process Strength of the co-creation process 0.36 0.025 Visions/vision integration indirect effect on: final shared team vision Estimated Predictive Strength Two- Tailed P-Value Total 0.57 0.000 Indirect 0.48 0.014 Specific (path) indirect: Vision/vision integration Conflict solving Quality interaction in elaboration process Strength of the co-creation process 0.33 0.026 7 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 Figure 1. The complete final model, including a comprehensive presentation of the measures of the three SMM variables. 8 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 of the SMM co-creation process is 46 percent. For the second success dependent variable, the aggregated and combined judgment on the quality of the final team vi- sion, the proportion explained variance is 66 percent. This is considered to be a very satisfying result (Mc- Neish, 2017). All the direct effects are presented in Ta- bles 2a to 2c. The impact of 1) the quality of the individual vi- sions/integrating visions on conflict solving, just as 2) conflict solving on the quality of team member interac- tion, and 3) the quality of team member interaction on the first dependent variable, the perceived strength of the co-creation process, is direct and strong. Moreover, the proportion explained variance, presented by the standardized estimated R-square, is very high at 84% (emerging individual visions/vision integration), 81% (conflict solving/feedback), and 48% (team interaction directed on redesigning an emerging knowledge struc- ture). Intellectual Synergy The final model (presented in Figure 1) shows that a direct and strong relationship exists between the per- ceived strength of the process and an intellectual syn- ergy. Table 3 shows that, as hypothesized, relationships exist between an intellectual synergy and personality. Intellectual synergy is an important measure of Figure 2. Overview of the final model Table 2a Direct effects of the SMM variable quality individual visions/vision integration on conflict solving/feedback Conflict solving/feedback on: Estimated predictive strength Stand. estimated R-square (prop. explained variance) Quality emerging individual visions/vision integration 0.91*** 0.84 Table 2b Direct effects of the SMM variable conflict solving/feedback/vision integration on quality of team interaction in the elaboration process Quality of team interaction on: Estimated predictive strength Stand. estimated R-square (prop. explained variance Conflict solving/feedback 0.90** 0.84 9 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 the elaboration process, phase three. The aggregated standard deviation of the personality trait assertive- ness, as well as the aggregated mean of the personality trait frustration is negatively related to the intellectual synergy between team members. The aggregated stan- dard deviation of frustration, measuring the diversity of this personality trait, has an enhancing effect on the co-creation process, as well with the ‘within groups’ 2) aggregated standard deviations and the 3) aggre¬- gated means of business expertise. Table 4 reveals that a direct relationship exists be- tween the perceived strength of the co-creation process and the quality of the final team vision. The proportion explained variance of the second exogenous dependent variable is strong (estimated R-square = 0.66). Further- more, it shows that higher aggregated team means on levels of the business expertise, as well as higher ag- gregated standard deviations of business expertise, are positively related to the quality of the final team vision. Table 2c Direct effects of the SMM variable ‘quality of team interaction’/vision integration on the ‘perceived strength of the co-creation process’ Strength of the co-creation process on: Estimated predictive strength Stand. estimated R-square (prop. explained variance) Quality team interaction 0.61** 0.48 Intellectual synergy on: Estimated predictive strength Aggregated standard de- viation assertiveness -0.22** Aggregated standard deviation coping with frustrations 0.2** Aggregated mean coping with frustrations -0.2** Table 3 Estimated predictive strength of intellectual syner- gy (estimated (stand.) R-square: 0.7) between team members outcome variable. Assertiveness measures self-initia- tive and assertive behaviors with a strong focus on own interests. The sub-dimension assertiveness originates from the domain dimension extraversion. The personality trait frustration measures personal effectiveness to cope with interpersonal conflicts, ir- ritations and annoyances. Higher averages on this di- mension are related to dysfunctional intra-psycholog- ical and interpersonal coping behaviors with respect to conflict solving. The negative direction of the pre- dictive strength implies that a high(er) diversity and lack of personal effectiveness with respect to affective conflict solving and coping with annoyances has a neg- ative effect on an intellectual synergy. Business Expertise Table 4 shows the (direct) relationships of the final shared team vision with 1) the perceived strength of the Table 4 Predictive strength of the perceived strength of the co-creation process, averages and standard devia- tion of business expertise on quality of the final team vision (estimated (stand.) R-square: 0.66) Quality of the final team vision on: Estimated predictive strength Perceived strength of the co-creation process 0.57*** Aggregated standard deviation business expertise 1.01*** Aggregated mean business expertise 1.01*** Discussion The most salient result of this study indicates that a SMM co-creation process in small entrepreneurial self-directed teams seems to demand a sequence: First, high-quality ideas have to be expressed and the diversity of ideas has to be integrated into a ho- listic, shared knowledge structure. Subsequently, these ideas and the holistic shared knowledge structure have 10 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 to be challenged by constructive cognitive conflict or debate, with effective feedback mechanisms being highly relevant. A specific team member interaction has to emerge, characterized by intellectual stimulation and elaboration skills such as deep listening, in order to redevelop and redesign the emerging shared men- tal model. The impact of all three endogenous SMM variables on the quality of the final result is completely mediated by the perceived strength of the co-creation process. The existence of the mediating effects pinpoints that all the latent variables have to be combined to- gether; however a specific order seems to be neces- sary. This is very much in line with the majority of theoretical considerations described in the introduc- tion and the paragraph with theoretical considerations. The practical implication for the co-creation process in developing an entrepreneurial team vision is that cre- ative new visions have to be debated during a conflict phase, followed by an elaboration and redesign pro- cess. However, the model shows that only creative and inspiring emerging visions and vision integration im- pact the second phase, the conflict solving phase. This is in accordance with research that effective debates and open discussions leading to innovation demand strong visions (see for an overview in Kellermanns et al., 2005; for an entrepreneurial context, see: Dyer et al., 2008; Dyer et al., 2011; Sarasvathy & Dew, 2013; Venkataraman et al., 2012). This quality of the third phase, the redesign phase, demands a high-quality team member interaction, char- acterized by deep listening and an intellectual synergy. This will impact the team members’ perceived strength of the co-creation process, the latter again impacting the final result: the quality of the final team vision. All these theoretical considerations depend on the strength of the direct effect between the three SMM variables. The quality of the emerging knowledge structure during the first phase fuels the second phase, its impact being direct and strong (0.91***). The same holds for the second indirect (complete mediation) effect, the con- flict solving phase on the elaboration phase (0.9***). As explained earlier, team member interaction during the third phase should have a very specific fo- cus: it should support the team members’ elaboration and redesign of the emerging entrepreneurial knowl- edge structure. This is very much in line with schol- ars such as Dyer et al. (2008), Dyer et al. (2011) and Venkataraman et al. (2012). These scholars have ex- plained to us that entrepreneurial visions have to be challenged, redesigned and reconstructed in order to be effective. In addition, their research reveals strong support that inspiring social interaction fuels redesign and intelligent elaboration on business models. The specific sequence of the model seems to sug- gest some imperative linear austerity or linear strict- ness. However, the effectuation framework, the theo- retical foundation of the third phase, clarifies this to be not the case. The effectuation framework shows that innovative business visions have to be redesigned and redeveloped to be effective, especially by syn- ergetic social interaction (Sarasvathy & Dew, 2013; Venkataraman et al., 2012). This insight highlights the circularity of the process. During the third phase, the ‘lessons learned’ phase, the initial emerging knowl- edge structure is reevaluated and again debated, thus illustrating this circularity identified above. This circu- lar theoretical conceptualization of the process is very much in line with research on knowledge innovation in teams (Hu, Horng, & Sun, 2009). The confirmative factor analysis shows that the measure of the capacity to integrate a diversity of vi- sions (measure of the first phase), and the measure dis- agreement as an enrichment of the multidimensionality of the team view (measure of the conflict solving phase), should be regarded to be important and valid compo- nents of the model. This supports a discouragement of the use and application of the level of association of the cognitive map between team members, when SMMs are studied in an entrepreneurial context. Furthermore, and maybe more importantly, this research result is very supportive of the theoretical reflections accentuat- ing the importance of multidimensional learning in the context of strategic decision making in teams, strategic organizational change (Pieterse, Caniëls, & Homan, 2012), and innovative entrepreneurship (Venkatara- man et al., 2012). This line of reasoning is in line with research results showing that mentoring by an open and intense dialogue on strategical issues empowers entrepreneurial talents (Wilbanks, 2015). However, it should be noted that most studies on the SMM frame- work are conducted in quite a different organizational context: for example, teams that have to perform in complex high pressure situations such as airport con- trol towers or nuclear power plants in crisis (Zhou & Wang, 2010). In such an organizational context, teams have to solve complex problems in a timely manner while being under high pressure with a complex team members’ interdependency. In such contexts, a strong and close association of the team members seems to be an important and relevant measure of the SMM. This context differs quite distinctively to an entrepreneurial context, in which teams are involved in an evolving, iterative process with a moving target: the co-creation 11 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 of a shared team vision on innovative business models or innovative marketing strategies. Therefore, it seems to be justified to conclude that collaboration competen- cies in developing a shared team vision seem to differ when the organizational context differs. This is in line with research revealing that for designing work-relat- ed competencies, a specification of the organizational context is demanded (Hensel, 2010). The model seems to offer interesting and valuable insights when a team members’ self-efficacy has to be enhanced in the co-creation process in order to develop an entrepreneurial team vision. This is useful for en- trepreneurs collaborating in small, self-directed teams, for small, entrepreneurial firms with lean and flat orga- nizational structures, as well as for business coaches and incubators, in demand of evidence-based tools to enhance the entrepreneurial self-efficacy in the co-cre- ation process of a shared team vision. Generally, a high self-efficacy demands: 1) A strong vision on those specific coping skills, which are necessary to be successful , and 2) a positive anticipation of the valence and effec- tiveness of applying these coping skills (Bandura, 1993; Bandura, 2001). The three SMM variables – quality of the visions/ vision integration, cognitive conflict solving, and elab- orating on emerging knowledge structures – seem to be quite useful for specifying the collaboration skills when an entrepreneurial team vision has to be devel- oped. Furthermore, it shows that these three SMM vari- ables enhance the perceived strength of the co-creation process, the latter again having an enhancing effect on the final result, the final shared team vision. Moreover, the research results are in strong com- pliance with Tuckman’s (Tuckman & Jensen, 1977) ‘forming, storming, norming and performing’ model. This is a very popular model for strategic human re- source development programs aiming at the enhance- ment of team work (Zwikael & Unger-Aviram, 2010). From a theoretical point of view, the model seems to explain to us that an integration of all theoretical con- siderations described in the introduction are quite rel- evant. It justifies the severe scientific criticism of most studies, that solemnly focus on emerging knowledge structures and the level of association of the cognitive map and is insufficient for an enhancement of our the- oretical understanding of SMMs development, at least in this entrepreneurial context. Strong alignment with the insights described above can be detected with re- spect to conflict solving and team cohesion. Next to goal commitment, group cohesion is one of the major predictors of a team performance (Van den Bossche et al., 2011). Effective conflict solving is one of the major important prerequisites of team cohesion (Zwikael & Unger-Aviram, 2010). Knowledge Matters Another important result of the study is that knowl- edge matters. This reveals the relevance of knowledge dissemination in developing a shared entrepreneurial team vision. The aggregated mean of the rated level of knowledge, as well as the diversity (standard devia- tion) has a strong impact on the quality of the final team vision. This has important implications, next to entre- preneurial competencies holding a high(er) level of en- trepreneurial body of knowledge, but also including a diversity of knowledge, positively influences an entre- preneurial team performance. It should be highlighted that business expertise was only related to the quality of the final team vision, not to the perceived strength of the group process. However, positive relations exist between the diversity of business expertise, measured by the aggregated standard deviation and the quality of the final shared team vision. This is an interesting result, implying that a diversity in business expertise has a positive influence on the final team vision. This can be interpreted in the following way: differences or higher diversity in expertise levels is functional, a strong diversity probably strengthening the co-creation process. However, within the teams, expertise levels in general should never be too low as the impact of higher averages on business expertise proved to be strong and positive. Intellectual Synergy An intellectual synergy, often labeled as intellectu- al stimulation, is a key process in developing an entre- preneurial team vision, especially when innovational capacities are demanded (Dyer et al., 2008; Dyer et al., 2011; Sarasvathy & Dew, 2013). However, an intellec- tual synergy seems to be a highly ambiguous concept. The results of this study offer interesting perspectives, and to deepen our understanding of this concept we analyzed its relatedness to personality traits. Assertiveness The negative influence of the diversity of the per- sonality trait assertiveness on an intellectual synergy is 12 R. Hensel, & R. Visser Journal of Small Business Strategy / Vol. 29, No. 1 (2019) / 1-15 a quite interesting one. It shows that a high(er) diversi- ty in assertiveness can be dysfunctional. This person- ality trait measures assertive behaviors with a strong focus on own interests and a strong self-initiative. The model reveals that the diversity of the personality traits assertiveness is negatively related to a group perfor- mance. This again is very much in line with theoretical insights with respect to the phenomenon group think. Strong differences between introverts and extroverts, without the use of specific group process interventions, cause a very limited information search process (Ed- mondson, Dillon, & Roloff, 2007; Mullen, Anthony, Salas, & Driskell, 1994). This implies that to effective- ly develop a team vision and SMMs in an entrepreneur- ial context, team members should learn specific group process interventions. The use of these interventions should be aimed at limiting and hampering dysfunc- tional group processes related to a stronger diversity in assertiveness. Coping with Frustrations Higher averages of the personality trait coping with frustrations proved to have a negative effect on an intellectual synergy. The Big 5 facet coping with frus- trations originates from the domain dimension neurot- icism. Its negative effect can be explained as follows. As described earlier, a cognitive conflict should be dis- tinguished from an affective one (Van den Bossche et al., 2011). Only constructive cognitive conflicts lead to high-quality SMMs or team visions. It seems to be righteous to assume that higher team means on this personality trait are associated with a dysfunctional conflict solving style. This dysfunctionality in coping with frustrations and annoyances hampers or mitigates team members’ conflict solving capacities. It is likely that dysfunctional conflict solving styles increase the chance that cognitive conflicts converse into affective conflicts. A cognitive conflict is related to conflicting visions or perspectives, whilst an affective conflict is related to conflicting underlying values (Arnold, Sil- vester, Cooper, Robertson, & Burnes, 2005, p. 464; Van den Bossche et al., 2011). An important character- istic of a value conflict is its high chance for a fast and intense escalation. Moreover, value conflicts are asso- ciated with strong emotions, which is also considered to be an important precondition of conflict escalation (Arnold et al., 2005, pp. 463-466). Consequently, group process interventions seem to be indicated. It demands a meta-analytical view on group processes and aligned group process interven- tions to fine-tune dysfunctional conflict coping be- haviors into constructive, cognitive elaboration skills on emerging knowledge structures. In contrast to the aggregated mean of coping with frustrations, a strong diversity proves to have a positive relationship with the outcome variable. This means that a diversity in coping with frustrations can be used as a strength in the interactional process of elaborating on the emerg- ing knowledge structure. Limitations An important limitation is the selected cohort, a group of undergraduate students. However, the design of a realistic entrepreneurial research context (students had to design a digital marketing strategy for real re- tailers) could be regarded as being supportive for the generalizability of the research results in an entrepre- neurial context. Moreover, the research focus was on the process not on the cognitive content, and further- more, a valid measure of business expertise is central to this study. Another disadvantage is the cross-sec- tional character of the study. Practical implications In order for team entrepreneurs to benefit from the increased pool of accessible resources, they need to understand the mechanisms that lead to the develop- ment of a shared team vision. Naturally, this also holds for incubators and business coaches seeking practical tools to enhance entrepreneurial team effectiveness. Studies have shown that the timely activation of entre- preneurial core competencies enhances entrepreneurial success (Alvarez & Busenitz, 2001). 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