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When ownership of the venture triggers cofounders’ unethical pro-venture behavior

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  • Hong, Michelle C.
  • Lin, Hsing-Er
  • Hsu, Dan K.
  • Shi, Yongchuan

Abstract

This research examines a prevailing yet understudied phenomenon—a cofounder's unethical pro-venture behavior. We identify two antecedents - psychological ownership and equity ownership of a cofounder. Data collected from 139 cofounders show a curvilinear relationship between psychological ownership and unethical pro-venture behavior. More interestingly, the incongruence between psychological ownership and equity ownership, particularly when psychological ownership exceeds equity ownership, increases the likelihood of such behavior.

Suggested Citation

  • Hong, Michelle C. & Lin, Hsing-Er & Hsu, Dan K. & Shi, Yongchuan, 2021. "When ownership of the venture triggers cofounders’ unethical pro-venture behavior," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    • Handle: RePEc:eee:jobuve:v:16:y:2021:i:c:s2352673421000330
    DOI: 10.1016/j.jbvi.2021.e00255
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