Trust is recognized to be a core driver of effective cooperation between two parties (Dawes, 1980; Keren & Raub, 1993; Komorita, Hilty, & Parks, 1991). This also applies for cooperative relationships between entrepreneurs and investors (Shepherd & Zacharakis, 2001), which are an important condition for venture success (Cable & Shane, 1997; Timmons & Bygrave, 1986). Thus, understanding antecedents of trust helps foster cooperation and ultimately venture success. Until now, few entrepreneurship studies tackled trust directly and empirically (Welter & Smallbone, 2006). Two recent studies mark an exception by looking at antecedents of entrepreneurs’ trust in their investor that are rooted prior to the investment (Stratling, Wijbenga, & Dietz, 2011; Welpe, 2008). In adopting a post-investment perspective we extend this research into the phase where entrepreneur-investor cooperation materializes. Using the prisoner’s dilemma lens we develop a fresh perspective on antecedents of trust and show that factors of perceived trustworthiness (ability, benevolence, integrity) and procedural justice impact entrepreneurs’ trust in their investor.
Middelhoff, Jan and Brettel, Malte
"THE ENTREPRENEUR’S POST-INVESTMENT PERSPECTIVE: ANTECEDENTS OF ENTREPRENEUR-INVESTOR TRUST (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 33
, Article 10.
Available at: http://digitalknowledge.babson.edu/fer/vol33/iss4/10