Peer effects on passion levels, passion trajectories, and outcomes for individuals and teams

Abstract

We consider the influence of inter- and intra-individual team dynamics on entrepreneurial passion change and the relevance of passion change to important outcomes. Drawing on person-environment fit theory, we hypothesize first, that in newly formed teams, the entrepreneurial passion levels of individuals are impacted by their peers' passion (the average passion of their teammates). Second, we expect that individuals' trajectories of passion change are influenced by their perception of fit with the team. Third, passion levels and trajectories are expected to impact entrepreneurial outcomes for both individuals and teams. To examine these temporal dynamics, our hypotheses are tested with data from an accelerator program involving 343 team members nested in 79 newly formed teams. The findings reveal that in new teams, individuals' passion for inventing, founding, and developing are positively (negatively) influenced when teammates have higher (lower) passion for these roles and the association between individual's passion and peers' aggregated passion becomes stronger over time. Over time, positive passion trajectories emerge when an individual perceives higher fit with their team, and entrepreneurial intent is predicted by both (a) end-state levels of individual passion and (b) passion trajectories for inventing and founding (but not developing). Finally, we find that team passion trajectories predict team performance. Implications of these multi-level findings are discussed.