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Detesting evil: Why parent firms express hostility to resist employee entrepreneurs’ unethical behavior

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  • Zeng, Kai
  • Wang, Duanxu
  • Xu, Yujing
  • Li, Zhengwei

Abstract

Employee entrepreneurs’ stealing from the parent firm where they were originally employed is a common phenomenon that has not traditionally been acknowledged as unethical behavior. Employee entrepreneurs’ unethical behavior (EEUB) not only causes economic losses to the parent firm but, more critically, constitutes a moral violation. Thus, parent firms tend to respond hostilely to EEUB. Drawing on deontic justice theory and the dual-process theory of moral judgment, this study conducted six investigations to examine the effect of EEUB on parent hostility, the underlying mechanisms, and the boundary conditions. Study 1, based on a survey of 646 employees, confirmed that EEUB triggers parent hostile attitude. Building on these findings, Study 2 implemented a scenario-based experiment involving 223 top executives to illustrate how EEUB prompts parent hostility. Finally, Study 3 conducted two surveys with 367 and 223 employee entrepreneurs respectively to test why and when EEUB provokes hostile behaviors in parent firms.

Suggested Citation

  • Zeng, Kai & Wang, Duanxu & Xu, Yujing & Li, Zhengwei, 2026. "Detesting evil: Why parent firms express hostility to resist employee entrepreneurs’ unethical behavior," Journal of Business Research, Elsevier, vol. 206(C).
    • Handle: RePEc:eee:jbrese:v:206:y:2026:i:c:s0148296325007374
    DOI: 10.1016/j.jbusres.2025.115914
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