A growing trend is the acquisition of startups as a source of competitive advantage. In this context, the presence of the founder creates a unique tension that must be considered. Employing a human capital we examine the impact the founders of acquired startups have on post-acquisition success, specifically on employee turnover. We analyze feedback from 369 employees of acquired startups. The findings indicate that levels of entrepreneurial culture and employee commitment post-acquisition are inversely related to employee turnover within the acquired firm. These relationships are found to be fully mediated by whether or not the founder is still in place.
Rhoads, Kevin; Busenitz, Lowell; and Haines, Howard
"ENTREPRENEURIAL ACQUISITION: FOUNDER RETENTION POST ACQUISITION, ASSET OR LIABILITY?,"
Frontiers of Entrepreneurship Research: Vol. 32
, Article 3.
Available at: https://digitalknowledge.babson.edu/fer/vol32/iss4/3