Drawing on a longitudinal multiple case study approach and data on eight entrepreneurial teams 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. High perceived justice triggered positive team interaction spirals, whereas low perceived justice triggered negative interaction spirals. Teams exposed to external erosive stressors drifted from a positive spiral to a negative spiral despite high perceived justice. These spirals impacted important entrepreneurial outcomes. We discuss the implications of our study for research on entrepreneurial imprinting, justice, and exit.
Breugst, Nicola; Rathgeber, Philipp; and Kleinknecht, Sven
"HOW SHOULD WE DIVIDE THE PIE? PERCEIVED JUSTICE OF EQUITY DISTRIBUTION AND ITS IMPACT ON ENTREPRENEURIAL TEAM INTERACTIONS AND OUTCOMES,"
Frontiers of Entrepreneurship Research: Vol. 34
, Article 1.
Available at: https://digitalknowledge.babson.edu/fer/vol34/iss9/1