Abstract
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.
Recommended Citation
Breugst, Nicola; Rathgeber, Philipp; and Kleinknecht, Sven
(2014)
"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
:
Iss.
9
, Article 1.
Available at:
https://digitalknowledge.babson.edu/fer/vol34/iss9/1