test
Search publications, data, projects and authors

Thesis

English

ID: <

10670/1.70nuqv

>

Where these data come from
How entrepreneurs regulate their dependence on investors - A critical realist study based on the case of Vietnamese entrepreneurs

Abstract

This thesis examines the relationship between entrepreneurs and business angels or venture capitalists. The corner stone of our analysis is that the thoughts and behaviors that increase the benefits entrepreneurs derive from that relationshipalso increase their dependence on investors and place them in a vulnerable position. The aim of this Critical Realist study is threefold. First, we examine how the phenomenon of dependence manifests itself in the entrepreneurs’ thoughts and behaviors. Second, we examine how entrepreneurs regulate their dependence on investors. Third, we seek to explain the psychological mechanisms underlying the dependence regulation process.Data from nineteen semi-structured interviews with Vietnamese entrepreneurs are analyzed using flexible deductive analysis, followed by a process of abductive and retroductive reasoning.The data analysis reveals that entrepreneurs can depend on investors in two qualitatively different ways. A minimum viable dependence implies a narrow and shallow form of dependence, whereas a maximum viable dependence involves abroad and deep form of dependence. These two dependence patterns differ depending on how entrepreneurs approach the collaboration (i.e., harvesting versus cultivating), view the supporting ability of investors (i.e., as fixed versusmalleable), consider the collaboration process (i.e., as resource-transferring versus resource-transforming), assume responsibility in the success or failure of the collaboration, evaluate the relationship’s value (i.e., instrumental valueversus emotional value) and seek to promote or not a personal connection with investors.Underlying these two dependence patterns is the inner resolution of two conflicting goals: stress-minimization and benefit-maximization. While benefit-maximization drives entrepreneurs toward the rewarding aspects of the relationship, stress-minimization steers them away from the distressing aspects of the collaboration. Minimum viable dependence arises when founders focus on minimizing stress, whereas maximum possible dependence occurs when they give priority to maximizing the potential benefits of the relationship.Through abduction, we argue that underlying the dependence regulation are the three basic psychological needs for autonomy, competence and relatedness (Deci and Ryan, 1985). We develop a theoretical explanation model, in which the dependence regulation is jointly shaped by two generative mechanisms: on-the-spot reaction and global adaptation.The former seeks to optimize the immediate experience in an interaction episode while the latter generates a stable dependence pattern that optimizes the overall welfare of entrepreneurs.Through retroduction, we identify a psychological entity we call Basic Experiential Requirement. The Basic Experiential Requirement helps entrepreneurs to increase the probability of and benefits from need satisfaction. It also helps them toreduce the likelihood of and damage from need frustration in dealing with investors. Overall, this study advances our understanding of the psychological dynamics underlying the success or failure of the collaboration between entrepreneurs and investors. Based on these findings, it offers entrepreneurs and investorspractical implications for how to build and maintain a mutually beneficial relationship.

Your Feedback

Please give us your feedback and help us make GoTriple better.
Fill in our satisfaction questionnaire and tell us what you like about GoTriple!