Antecedents of entrepreneurs' trust in their investor in the postinvestment phase - do something good!

Jan Middelhoff, René Mauer and Malte Brettel

Venture Capital, 2014, vol. 16, issue 4, 327-347

Abstract: This study sheds light on character- and behavior-based antecedents in driving entrepreneurs' trust in their investors after the investment has been made. By introducing established concepts from trust literature, this study decomposes antecedents of entrepreneurs' trust and helps to further clarify the entrepreneur-investor relationship. The study also advances research by analyzing trust in a nonhierarchical relationship and by working on the interplay of procedural justice and perceived trustworthiness. Using a survey of 104 German entrepreneurs, we find that perceptions about investors' ability, integrity, and benevolence drive entrepreneurs' trust. A moderation analysis reveals that interaction frequency has differing effects in combination with benevolence and integrity. In contrast to some earlier findings, procedural justice does not show a significant relationship with trust in our model. Investors should be aware of the strong and positive influence that the affective factor of benevolence has in the postinvestment phase, and they should take note of the double-edged effect of frequent interactions.

Date: 2014
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/13691066.2014.988381 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:veecee:v:16:y:2014:i:4:p:327-347

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TVEC20

DOI: 10.1080/13691066.2014.988381

Access Statistics for this article

Venture Capital is currently edited by Colin Mason and Richard T. Harrison

More articles in Venture Capital from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().