Development of transactive memory systems in new venture teams

This article examines how new venture teams (NVTs) develop transactive memory systems (TMSs) to integrate and coordinate their member’s collective expertise. Applying a longitudinal case study of five Norwegian NVTs in their first year, we find that the development of TMSs in NVTs unfolds in three stages. At the pre-formation stage, NVTs undergo a TMS enabling process that includes member motivation, self-declaration and member expectations, which lead to initial specialisation in NVTs. Subsequently, at the formation and collaboration stages, NVTs proceed with TMS processes of encoding, storage and retrieval that encompass self-assessment, assessment of co-members, shared understanding, role formalisation, decision-making and task performance, which enhance specialisation and result in the gradual development of credibility and coordination in NVTs. Furthermore – through member motivation, trust and shared ownership – NVTs engage in a TMS-reinforcing process that helps NVTs to strengthen their TMSs over time, enabling them to increase their ability to integrate and coordinate NVT collective expertise.