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The Magnetic Value of Entrepreneurial Passion for Potential Employees

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  • Lewis, Trey
  • Cardon, Melissa S.

Abstract

When new ventures tap into the labor market, they must battle with more established companies to recruit top human capital. We examine how an attribute known to influence new venture funders, entrepreneurial passion, also contributes to the ability of the firm to recruit employees. Through conjoint analysis of potential employee ratings of the attractiveness of working at a new venture, we demonstrate the importance of perceived passion of founders to potential employees. We show that a founder’s perceived passion for their product and for growth can enhance employer attractiveness when founders are perceived to have high human capital, but more importantly, can also compensate for founders with limited human capital. When considered together, perceived passion for product or passion for growth can compensate for low human capital of founders in attracting employees to new ventures.

Suggested Citation

  • Lewis, Trey & Cardon, Melissa S., 2020. "The Magnetic Value of Entrepreneurial Passion for Potential Employees," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    • Handle: RePEc:eee:jobuve:v:14:y:2020:i:c:s2352673420300494
    DOI: 10.1016/j.jbvi.2020.e00193
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    References listed on IDEAS

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    Cited by:

    1. David B. Audretsch & Antje Fiedler, 2023. "Power and entrepreneurship," Small Business Economics, Springer, vol. 60(4), pages 1573-1592, April.
    2. Evila Piva & Silvia Stroe, 2023. "New ventures fighting the war for talents: the impact of product innovativeness and entrepreneurs’ passion on applicant attraction," Small Business Economics, Springer, vol. 61(3), pages 1133-1159, October.
    3. Hamrick, Alexander B., 2022. "Stress[ed] out, leisure in: The role of leisure crafting in facilitating entrepreneurs’ work stressor— creativity relationship," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    4. Chandler, Jeffrey A. & Anglin, Aaron H. & Kanwal, Fizza & Short, Jeremy C., 2024. "No politics in funding pitches: An expectancy violations theory perspective of entrepreneurs' political expressions in crowdfunding," Journal of Business Venturing, Elsevier, vol. 39(1).
    5. Allison, Thomas H. & Warnick, Benjamin J. & Davis, Blakley C. & Cardon, Melissa S., 2022. "Can you hear me now? Engendering passion and preparedness perceptions with vocal expressions in crowdfunding pitches," Journal of Business Venturing, Elsevier, vol. 37(3).
    6. Chandra, Yanto & Tjiptono, Fandy & Setyawan, Andhy, 2021. "The promise of entrepreneurial passion to advance social entrepreneurship research," Journal of Business Venturing Insights, Elsevier, vol. 16(C).

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