How should we divide the pie? Equity distribution and its impact on entrepreneurial teams

Nicola Breugst, Holger Patzelt and Philipp Rathgeber

Journal of Business Venturing, 2015, vol. 30, issue 1, 66-94

Abstract: Drawing on a multiple case study approach and data on eight entrepreneurial teams observed over six months this article develops a dynamic model of the consequences of equity distribution among team members. Perceived justice of equity distribution emerged as a key variable influencing entrepreneurial team interactions and important entrepreneurial outcomes. High perceived justice triggered positive team interaction spirals, whereas low perceived justice triggered negative interaction spirals. Teams exposed to external threats drifted from a positive spiral to a negative spiral despite high perceived justice. We discuss the implications of our study for research on entrepreneurial imprints, justice, and exit.

Keywords: Equity distribution; Team interactions; Team member exit; Entrepreneurial team performance; Entrepreneurial venture performance (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:30:y:2015:i:1:p:66-94

DOI: 10.1016/j.jbusvent.2014.07.006

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