Entrepreneurial teams vs management teams: Reasons for team formation in small firms

Purpose – The purpose of this paper is to answer whether or not entrepreneurial teams and management teams are a common phenomenon in small firms and to identify differences in the reasons for the formation of these different kinds of joint management. Additionally the impact of joint management on the performance of small businesses is tested.Design/methodology/approach – To answer the research question a questionnaire survey (n = 119, response rate = 48 per cent) of small firms (20‐49 employees) in Eastern Finland was supplemented by a secondary data collection on financial issues.Findings – The results show that in nearly four‐fifths of the firms a team was involved in the management. The logistic regression model revealed statistically significant differences between firms with entrepreneurial teams and such with management teams regarding the formation motives turnover, liability distribution and efficiency. Even though secondary data suggested that the firms managed by management teams were bigger, ...