TUM School of Management, Technische U. München, Germany
Founders of new ventures often find themselves balancing a strong desire to maintain control with the growing need to delegate responsibilities as the venture expands. This study examines how founders motivate and guide early employees to advance their ventures. Using a qualitative, longitudinal multiple-perspectives approach, we explore leadership practices through interviews with 20 founders and their early employees, complemented by secondary data. Our findings reveal significant variability in leadership practices, from task-based guidance like OKR frameworks to vision-oriented approaches emphasizing cultural alignment. Employees respond differently: some express high satisfaction and commitment, while others feel controlled. Despite less optimal leadership, employees maintain strong attachment to the venture and invest significant effort. This study contributes to leadership and entrepreneurship literature by revealing how leadership practices influence employee reactions and effort in new ventures, offering new insights into leadership dynamics in early ventures and implications for enhancing employee motivation.
