IDEAS home Printed from https://ideas.repec.org/a/wsi/jecxxx/v18y2010i01ns0218495810000471.html
   My bibliography  Save this article

STAKEHOLDER TREATMENT AMONGST IPOsAND THE ACQUISITION OF RESOURCES FOR ENTREPRENEURIAL VENTURES

Author

Listed:
  • JOSEPH E. COOMBS

    (Mays Business School, Texas A & M University, College Station, TX 77843, USA)

  • JEFFREY S. HARRISON

    (Robins School of Business, University of Richmond, Richmond, VA 23173, USA)

Abstract

Entrepreneurs bring together the various stakeholders necessary to create new products and services; however, stakeholders face a high level of uncertainty when determining whether to invest their resources in the venture. This paper draws from signaling theory and stakeholder theory to explain how firms that have reputations for outstanding treatment of stakeholders send a signal to potential resource investors that reduces the uncertainty they perceive to be associated with the venture. Perceived uncertainty is reduced because of an enhanced ability to acquire necessary resources, a smaller probability that unexpected events will occur, an increased ability to plan for changes that do occur in the external environment, and the possibility that the strong stakeholder network itself may be a source of sustainable competitive advantage for the firm. While these ideas are applicable to entrepreneurial ventures at many stages, the context examined herein is firms that are preparing for an initial public offering because they have had sufficient time to establish reputations.

Suggested Citation

  • Joseph E. Coombs & Jeffrey S. Harrison, 2010. "STAKEHOLDER TREATMENT AMONGST IPOsAND THE ACQUISITION OF RESOURCES FOR ENTREPRENEURIAL VENTURES," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 29-48.
    • Handle: RePEc:wsi:jecxxx:v:18:y:2010:i:01:n:s0218495810000471
    DOI: 10.1142/S0218495810000471
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0218495810000471
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0218495810000471?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:jecxxx:v:18:y:2010:i:01:n:s0218495810000471. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/jec/jec.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.