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New venture creation as establishing stakeholder relationships: A trust-based perspective

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  • Pollack, Jeffrey M.
  • Barr, Steve
  • Hanson, Sheila

Abstract

The importance of trust in numerous dyadic relationships (e.g., romantic relationships, co-workers) is well documented, yet trust within the context of entrepreneurship—specifically, enabling the emergence of new ventures—is largely unexplored. In particular, we know very little about how entrepreneurs use trust to establish each of the unique strategic alliances they must form with stakeholders to enable a new venture to enter the market. We present a theory-based approach, developed from existing literature on trust, to specify multiple stakeholder-oriented insights related to trust that may facilitate new venture creation. In sum, during venture initiation, stakeholders require entrepreneurs to convey nuanced interpersonal messages to develop, initially, dimensions of trust – ability, benevolence, and integrity – to effectively build these relationships that enable successful new firm emergence.

Suggested Citation

  • Pollack, Jeffrey M. & Barr, Steve & Hanson, Sheila, 2017. "New venture creation as establishing stakeholder relationships: A trust-based perspective," Journal of Business Venturing Insights, Elsevier, vol. 7(C), pages 15-20.
    • Handle: RePEc:eee:jobuve:v:7:y:2017:i:c:p:15-20
    DOI: 10.1016/j.jbvi.2016.12.003
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    4. Greg Fisher & Regan Stevenson & Emily Neubert & Devin Burnell & Donald F. Kuratko, 2020. "Entrepreneurial Hustle: Navigating Uncertainty and Enrolling Venture Stakeholders through Urgent and Unorthodox Action," Journal of Management Studies, Wiley Blackwell, vol. 57(5), pages 1002-1036, July.
    5. Manuel Kaiser & Elisabeth S. C. Berger, 2021. "Trust in the investor relationship marketing of startups: a systematic literature review and research agenda," Management Review Quarterly, Springer, vol. 71(2), pages 491-517, April.
    6. Clarke, Samuel L. & Rhodes, Eric S., 2020. "Entrepreneurial apologies: The mediating role of forgiveness on future cooperation," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    7. Hannu Littunen & Timo Tohmo & Esa Storhammar, 2021. "Innovation among SMEs in Finland: The impact of stakeholder engagement and firm-level characteristics," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 17(4), pages 157-196.
    8. Leonidou, Erasmia & Christofi, Michael & Vrontis, Demetris & Thrassou, Alkis, 2020. "An integrative framework of stakeholder engagement for innovation management and entrepreneurship development," Journal of Business Research, Elsevier, vol. 119(C), pages 245-258.
    9. Bi, Qingqing & Boh, Wai Fong & Christopoulos, Georgios, 2021. "Trust, fast and slow: A comparison study of the trust behaviors of entrepreneurs and non-entrepreneurs," Journal of Business Venturing, Elsevier, vol. 36(6).
    10. Jeffrey M. Pollack & Jon C. Carr & Andrew C. Corbett & Crystal L. Hoyt & Franz W. Kellermanns & Bradley L. Kirkman & Corinne Post, 2020. "Contextual and Interactional Approaches to Advancing Leadership and Entrepreneurship Research," Journal of Management Studies, Wiley Blackwell, vol. 57(5), pages 915-930, July.
    11. Dutta, Tanurima & Packard, Mark D., 2024. "The needle of charisma and the threads of trust: Advancing effectuation theory's crazy quilt principle," Journal of Business Venturing, Elsevier, vol. 39(4).
    12. Carmen Virues & Maria Velez & Jose M. Sanchez, 2019. "Signaling Trustworthiness to Stakeholders: International vs. Domestic Entrepreneurs," Sustainability, MDPI, vol. 11(7), pages 1-22, April.
    13. Vasilis Theoharakis & Seraphim Voliotis & Jeffrey M. Pollack, 2021. "Going Down the Slippery Slope of Legitimacy Lies in Early-Stage Ventures: The Role of Moral Disengagement," Journal of Business Ethics, Springer, vol. 172(4), pages 673-690, September.
    14. André Laplume & Kent Walker & Zhou Zhang & Xin Yu, 2021. "Incumbent Stakeholder Management Performance and New Entry," Journal of Business Ethics, Springer, vol. 174(3), pages 629-644, December.
    15. Chawla, Chetan, 2020. "Trust in blockchains: Algorithmic and organizational," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
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    17. Kerr, Jon & Coviello, Nicole, 2020. "Weaving network theory into effectuation: A multi-level reconceptualization of effectual dynamics," Journal of Business Venturing, Elsevier, vol. 35(2).

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