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

Daniel Appelhoff, René Mauer (), Veroniek Collewaert and Malte Brettel
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Daniel Appelhoff: RWTH Aachen University
René Mauer: RWTH Aachen University
Veroniek Collewaert: Vlerick Business School
Malte Brettel: RWTH Aachen University

International Entrepreneurship and Management Journal, 2016, vol. 12, issue 2, No 14, 623 pages

Abstract: 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.

Keywords: Effectuation; Causation; Task conflict; Venture capital (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (17)

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DOI: 10.1007/s11365-015-0357-4

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