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Responses to Psychological Contract Violations in the Venture Capitalists – Entrepreneur Relationship: An Exploratory Study

Parhankangas, A-L. and Landström, Hans LU (2003) Babson-Kauffman Entrepreneurship Research Conference, 2003 In Frontiers of Entrepreneurship Research: Proceedings of the Twenty-Third Annual Entrepreneurship Research Conference
Abstract
The purpose of our paper is to describe venture capitalists’ responses to psychological contract violations in their relationship with entrepreneurs. In addition, we seek to establish a link between the characteristics of a psychological contract violation and the venture capitalist’s behavior. We are concerned with three forms of psychological contract violations: (i) a disagreement over the goals or strategies of a portfolio company, (ii) incompetence of the entrepreneur, and (iii) shirking and opportunistic behavior of the entrepreneur. Our results show that venture capitalists prefer active behaviors to passive approaches. Also, voluntariness of the psychological contract violation, possibilities to improve the impaired relationship,... (More)
The purpose of our paper is to describe venture capitalists’ responses to psychological contract violations in their relationship with entrepreneurs. In addition, we seek to establish a link between the characteristics of a psychological contract violation and the venture capitalist’s behavior. We are concerned with three forms of psychological contract violations: (i) a disagreement over the goals or strategies of a portfolio company, (ii) incompetence of the entrepreneur, and (iii) shirking and opportunistic behavior of the entrepreneur. Our results show that venture capitalists prefer active behaviors to passive approaches. Also, voluntariness of the psychological contract violation, possibilities to improve the impaired relationship, and the performance implications for the portfolio company play a key role in determining the venture capitalist’s (Less)
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author
organization
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Chapter in Book/Report/Conference proceeding
publication status
published
subject
in
Frontiers of Entrepreneurship Research: Proceedings of the Twenty-Third Annual Entrepreneurship Research Conference
conference name
Babson-Kauffman Entrepreneurship Research Conference, 2003
ISBN
0-910897-24-7
language
English
LU publication?
yes
id
a93a9563-bcaa-44a7-b005-0fe190c27f42 (old id 3129003)
alternative location
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1783700
date added to LUP
2012-10-15 09:32:19
date last changed
2016-04-16 11:39:59
@inproceedings{a93a9563-bcaa-44a7-b005-0fe190c27f42,
  abstract     = {The purpose of our paper is to describe venture capitalists’ responses to psychological contract violations in their relationship with entrepreneurs. In addition, we seek to establish a link between the characteristics of a psychological contract violation and the venture capitalist’s behavior. We are concerned with three forms of psychological contract violations: (i) a disagreement over the goals or strategies of a portfolio company, (ii) incompetence of the entrepreneur, and (iii) shirking and opportunistic behavior of the entrepreneur. Our results show that venture capitalists prefer active behaviors to passive approaches. Also, voluntariness of the psychological contract violation, possibilities to improve the impaired relationship, and the performance implications for the portfolio company play a key role in determining the venture capitalist’s},
  author       = {Parhankangas, A-L. and Landström, Hans},
  booktitle    = {Frontiers of Entrepreneurship Research: Proceedings of the Twenty-Third Annual Entrepreneurship Research Conference},
  isbn         = {0-910897-24-7},
  language     = {eng},
  title        = {Responses to Psychological Contract Violations in the Venture Capitalists – Entrepreneur Relationship: An Exploratory Study},
  year         = {2003},
}