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The cost of injustice: overall justice, emotional exhaustion, and performance among entrepreneurs: do founders fare better?

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  • Guillaume Soenen

    (EMLYON Business School)

  • Constanze Eib

    (Uppsala University
    University of East Anglia, Norwich Business School, Norwich Research Park,)

  • Olivier Torrès

    (Montpellier Business School)

Abstract

In this paper, we build on the allostatic load model, developed in stress research, to explore the impact of entrepreneurs’ overall justice perceptions on emotional exhaustion and firm performance. Results revealed that the relationship between overall justice and emotional exhaustion was mediated by rumination about work. Further, building on recent work by Baron et al. (Journal of Management, 42(3), 742–768, 2016), which highlighted that company founders have more resources to deal with stress, we hypothesized that the relationship between rumination about work and emotional exhaustion was moderated by whether the entrepreneur was the founder of the venture or not. Results revealed that indeed founders appeared to be immune to the consequences of rumination about work elicited by injustice at work, while non-founders suffered from it. Moreover, emotional exhaustion was related to the monthly firm performance. Implications for research and practice are discussed.

Suggested Citation

  • Guillaume Soenen & Constanze Eib & Olivier Torrès, 2019. "The cost of injustice: overall justice, emotional exhaustion, and performance among entrepreneurs: do founders fare better?," Small Business Economics, Springer, vol. 53(2), pages 355-368, August.
    • Handle: RePEc:kap:sbusec:v:53:y:2019:i:2:d:10.1007_s11187-018-0052-2
    DOI: 10.1007/s11187-018-0052-2
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    2. Olivier Torrès & Alexandre Benzari & Christian Fisch & Jinia Mukerjee & Abdelaziz Swalhi & Roy Thurik, 2022. "Risk of burnout in French entrepreneurs during the COVID-19 crisis," Small Business Economics, Springer, vol. 58(2), pages 717-739, February.
    3. Michael A. Abebe & Pingshu Li & Keshab Acharya & Joshua J. Daspit, 2020. "The founder chief executive officer: A review of current insights and directions for future research," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 406-436, November.
    4. Nguyen, Bach & Tran, Hai-Anh & Stephan, Ute & Van, Ha Nguyen & Anh, Pham Thi Hoang, 2024. "“I can't get it out of my mind” - Why, how, and when crisis rumination leads entrepreneurs to act and pivot during crises," Journal of Business Venturing, Elsevier, vol. 39(4).
    5. Ali E. Ahmed & Deniz Ucbasaran & Gabriella Cacciotti & Trenton A. Williams, 2022. "Integrating Psychological Resilience, Stress, and Coping in Entrepreneurship: A Critical Review and Research Agenda," Entrepreneurship Theory and Practice, , vol. 46(3), pages 497-538, May.
    6. Guadalupe Manzano-García & Juan Carlos Ayala-Calvo & Pascale Desrumaux, 2020. "Entrepreneurs’ Capacity for Mentalizing: Its Influence on Burnout Syndrome," IJERPH, MDPI, vol. 18(1), pages 1-11, December.

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