From formation to identity: understanding the dynamics of entrepreneurial teams in incubation programs

Abstract

Purpose This study aims to examine how entrepreneurial team formation and the development of entrepreneurial team identity unfold within incubated startups. It investigates whether incubation programs serve merely as external support or actively shape internal processes such as alignment, cohesion and the construction of shared narratives. Design/methodology/approach It is employed a purposeful sampling strategy to select eleven entrepreneurs across five teams that completed the CEU iLab incubation. Data were collected retrospectively through semi-structured interviews. Thematic analysis was applied to identify patterns and insights regarding the development of entrepreneurial team identity and the role of incubation in shaping internal team processes. Findings The study finds a mutually reinforcing relationship between entrepreneurial team formation and the development of entrepreneurial identity. Shared vision, complementary skills, trust and pre-existing relationships were key in shaping cohesion and identity. Furthermore, teams also demonstrated dynamic identity processes, including diversity, shared decision-making and ongoing adaptation to evolving goals. Originality/value This research advances current knowledge by offering a more nuanced understanding of how incubation influences the emergence and evolution of entrepreneurial team identity. While prior studies typically emphasize the external support provided by incubators, our findings reveal that incubation programs also play an active and previously overlooked role in shaping internal team processes, including alignment, cohesion and the development of shared narratives among co-founders. In doing so, the study not only clarifies how team identity is collaboratively constructed in early-stage ventures but also identifies incubation as a formative mechanism in this process, thereby extending theoretical perspectives on both incubation and entrepreneurial team dynamics.