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The conflict potential of the entrepreneur’s decision-making style in the entrepreneur-investor relationship

Author

Listed:
  • Daniel Appelhoff

    (RWTH Aachen University)

  • René Mauer

    (RWTH Aachen University)

  • Veroniek Collewaert

    (Vlerick Business School)

  • Malte Brettel

    (RWTH Aachen University)

Abstract

While 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.

Suggested Citation

  • Daniel Appelhoff & René Mauer & Veroniek Collewaert & Malte Brettel, 2016. "The conflict potential of the entrepreneur’s decision-making style in the entrepreneur-investor relationship," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 601-623, June.
    • Handle: RePEc:spr:intemj:v:12:y:2016:i:2:d:10.1007_s11365-015-0357-4
    DOI: 10.1007/s11365-015-0357-4
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    6. Kalyanasundaram Ganesaraman & M. H. Bala Subrahmanya, 2022. "How Conflicts Cause Technology Startups to Fail in India? An Empirical Analysis," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 40-52, June.
    7. Wenwen An & Charles-Clemens Rüling & Xin Zheng & Jianqi Zhang, 2020. "Configurations of effectuation, causation, and bricolage: implications for firm growth paths," Small Business Economics, Springer, vol. 54(3), pages 843-864, March.
    8. Laurence Cohen & Peter Wirtz, 2022. "Decision-making style in entrepreneurial finance and growth," Small Business Economics, Springer, vol. 59(1), pages 183-210, June.
    9. Jessica Alzamora-Ruiz & María Fuentes-Fuentes & Myriam Martinez-Fiestas, 2021. "Together or separately? Direct and synergistic effects of Effectuation and Causation on innovation in technology-based SMEs," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1917-1943, December.
    10. HONJO Yuji & IKEUCHI Kenta & NAKAMURA Hiroki, 2022. "Does risk aversion affect individuals’ actions and interests in angel investing? Empirical evidence from Japan," Discussion papers 22040, Research Institute of Economy, Trade and Industry (RIETI).
    11. Gry Agnete Alsos & Tommy Høyvarde Clausen & René Mauer & Stuart Read & Saras D. Sarasvathy, 2020. "Effectual exchange: from entrepreneurship to the disciplines and beyond," Small Business Economics, Springer, vol. 54(3), pages 605-619, March.
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    13. Zou, Na & Storz, Cornelia, 2023. "Why do some entrepreneurs thrive? A network content perspective," Journal of Business Research, Elsevier, vol. 161(C).
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    15. Caroline Tarillon & Han Yu & Ludivine Adla & Elodie Manthé & Geoffroy Enjolras, 2023. "Similarity is not everything: the influence of personal characteristics of entrepreneurs and investors on their fit," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 709-732, June.
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