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Emotional assuring, trust Building, and resource mobilization in start-up organizations

Author

Listed:
  • Huy, Quy

    (INSEAD)

  • Zott, Christoph

    (IESE Business School)

Abstract

Based on a five-year field study of six new ventures, we investigate whether and how organization foun-ders use affective influence, a form of emotion management, with diverse stakeholders, namely investors, board members, customers, and employees. We found wide differences in founders' propensity to use affective influence actions and that not all affective influence actions were effective in mobilizing re-sources for the new firm. We identified a particular form of beneficial affective influence we call "emo-tional assuring," which refers to affective influence actions that seek to build three different dimensions of trust in regard to the new firm: (1) the firm's integrity, (2) the founder's competence as an entrepreneur, and (3) the founder's benevolent character. Although firms that practiced little emotional assuring could mobilize adequate resources as well as firms that did it in munificent environments, the latter gained an upper hand and were more resilient under tough economic conditions. We also identified the moderating conditions and limitations of emotional assuring.

Suggested Citation

  • Huy, Quy & Zott, Christoph, 2009. "Emotional assuring, trust Building, and resource mobilization in start-up organizations," IESE Research Papers D/828, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0828
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    File URL: http://www.iese.edu/research/pdfs/DI-0828-E.pdf
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    Cited by:

    1. Mara Del Baldo, 2012. "Stakeholder Management and CSR approach in Italian ?territorial? companies - Loccioni Group and the ?LOV ? Land of Values? Project," Working Papers 1205, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2012.

    More about this item

    Keywords

    Affective influence; emotional assuring; emotion; entrepreneurship; organization creation; resource mobilization; trust;
    All these keywords.

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