What drives success in Swedish New Venture Teams? A comparative analysis of diversity in team composition, and the decision-making process across the Swedish new venture ecosystem

Abstract

Introduction: This thesis investigates the impact of diversity within founding teams on the decision-making processes and success of new venture firms in Sweden. With the increasing number of start-ups in the Swedish entrepreneurial ecosystem, understanding the factors that contribute to their success or failure is vital. Aim: The aim of this study is to analyse how different team compositions and member characteristics influence decision-making processes at various stages of a new venture's lifecycle, particularly focusing on the market entry decision. Methodology: The research follows an abductive reasoning approach, combining existing literature with empirical data to develop an understanding of the topic. It also uses a thematic analysis method to analyse the data, where answers from the interviews are transcribed, coded, categorized and sorted into themes, which builds the groundwork for the analysis. Data Collection: The primary data was collected through semi-structured interviews with founders of ten different Swedish new venture firms. Interviews were conducted in person or online for between 30 and 45 minutes, using an interview guide as a foundation for the direction of the interviews. Analysis: An analysis is conducted surrounding how diversity within founding teams influences the decision-making processes in Swedish new venture firms. Educational diversity tends to lean towards data-driven strategies since it enhances analytical skills. Ethnic diversity brings varied cultural perspectives, fostering innovation but also requiring a certain level of conflict management. Age diversity tends to balance experience with fresh ideas, while gender diversity can broaden understanding of consumer behaviour. There are multiple factors that affect why that is such as the type of decision, structural norms within the new venture and external macroeconomic effects on the business environment. Conclusion: This study highlights the role of diversity within founding teams on the decisionmaking processes and success of new venture firms in Sweden. Diverse team constellations enhance strategic decision-making to a degree. There must however be an effective team management in place to ensure that diverse perspectives contribute in the right way. Ultimately, integrating diverse and competent teams fosters innovation, strategic agility, and resilience, but a founder team solely built upon diversity will not make the most effective decisions. The key is to encourage and build diverse teams, from a strong foundation of competence and skills. Originality: This thesis provides a unique contribution to the field by bridging the gap in understanding the impact of founding team diversity on decision-making within new-venture firms in Sweden.