The conflict potential of the entrepreneur's decision-making style in the entrepreneur-investor relationship
Publication typeArticle in academic journal
JournalInternational Entrepreneurship and Management Journal
Publication Begin page601
Publication End page623
MetadataShow full item record
AbstractWhile 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.