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The conflict potential of the entrepreneur’s decision-making style in the entrepreneur-investor relationship

Appelhoff, Daniel
Mauer, René
Collewaert, Veroniek
Brettel, Malte
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Publication Type
Journal article with impact factor
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Supervisor
Publication Year
2016-06
Journal
International Entrepreneurship and Management Journal
Book
Publication Volume
12
Publication Issue
2
Publication Begin page
601
Publication End page
623
Publication Number of pages
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Abstract
While prior research has indicated the importance of conflicts between investors and entrepreneurs, little is known about their causes. We use theory on entrepreneurial decision-making to examine the impact of a founding team’s causal versus effectual decision style on the level of perceived task conflict that founders experience with their venture capitalists. Based on a sample of 141 German ventures, we find that a founding team perceives fewer conflicts when following the causal principle of overcoming the unexpected and the effectual principle of affordable loss.
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Keywords
3502 Banking, Finance and Investment, 35 Commerce, Management, Tourism and Services, 3507 Strategy, Management and Organisational Behaviour
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