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The other side of the coin: Investor identity and its role in resource provision

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  • Smith, Brett R.
  • Bergman, Brian J.

Abstract

While research highlights the importance of an entrepreneurial identity in acquiring resources, our exploratory study advances research on identity, entrepreneurship, and resource exchange by highlighting the other side of the coin: the role of an investor identity. Based on our qualitative study, we find that investors engage in sensegiving through organizational identity claims and actions to (re)define their organizational reality about who they are and what they do. They engage in investor identity work to adapt to the strategic changes in a market category and sustain resource provision. Our findings have theoretical implications for identity and entrepreneurship research including the construct of investor identity and its sensegiving function, its dynamism and role in strategic changes, and its role in subjective assessment of investor decision-making.

Suggested Citation

  • Smith, Brett R. & Bergman, Brian J., 2020. "The other side of the coin: Investor identity and its role in resource provision," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    • Handle: RePEc:eee:jobuve:v:14:y:2020:i:c:s2352673420300317
    DOI: 10.1016/j.jbvi.2020.e00175
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    References listed on IDEAS

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    1. Ko, Eun-Jeong & McKelvie, Alexander, 2018. "Signaling for more money: The roles of founders' human capital and investor prominence in resource acquisition across different stages of firm development," Journal of Business Venturing, Elsevier, vol. 33(4), pages 438-454.
    2. Hall, John & Hofer, Charles W., 1993. "Venture capitalists' decision criteria in new venture evaluation," Journal of Business Venturing, Elsevier, vol. 8(1), pages 25-42, January.
    3. Dennis A. Gioia & Kumar Chittipeddi, 1991. "Sensemaking and sensegiving in strategic change initiation," Strategic Management Journal, Wiley Blackwell, vol. 12(6), pages 433-448, September.
    4. Younger, Shannon & Fisher, Greg, 2020. "The exemplar enigma: New venture image formation in an emergent organizational category," Journal of Business Venturing, Elsevier, vol. 35(1).
    5. Evan J. Douglas & Dean Shepherd, 2002. "Exploring investor readiness: Assessments by entrepreneurs and investors in Australia," Venture Capital, Taylor & Francis Journals, vol. 4(3), pages 219-236, July.
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    Cited by:

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    2. Laura Toschi & Elisa Ughetto & Andrea Fronzetti Colladon, 2023. "The identity of social impact venture capitalists: exploring social linguistic positioning and linguistic distinctiveness through text mining," Small Business Economics, Springer, vol. 60(3), pages 1249-1280, March.
    3. Nesij Huvaj, M. & Darmody, Aron & Smith, Robert S., 2023. "Psychological ownership and disownership in reward-based crowdfunding," Journal of Business Research, Elsevier, vol. 158(C).
    4. Krukowski, Kipp A. & Pollack, Jeffrey M. & Rutherford, Matthew W., 2023. "Winning the opportunity to pitch: Piquing startup investors’ interest by sending the right signals in executive summaries," Business Horizons, Elsevier, vol. 66(1), pages 75-86.
    5. Brett R. Smith & Amanda Lawson & Jessica Jones & Tim Holcomb & Aimee Minnich, 2022. "Trying to Serve Two Masters is Easy, Compared to Three: Identity Multiplicity Work by Christian Impact Investors," Journal of Business Ethics, Springer, vol. 179(4), pages 1053-1070, September.
    6. Smith, Brett R. & Bergman, Brian J. & Kreiner, Glen E., 2021. "When the beacon goes dark: Legitimacy repair work by subsequent actors in an emerging market category," Journal of Business Venturing, Elsevier, vol. 36(5).
    7. Brian J. Bergman & Jeffery S. McMullen, 2022. "Helping Entrepreneurs Help Themselves: A Review and Relational Research Agenda on Entrepreneurial Support Organizations," Entrepreneurship Theory and Practice, , vol. 46(3), pages 688-728, May.

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