‘I Like How You Think’: Similarity as an Interaction Bias in the Investor–Entrepreneur Dyad

29 Pages Posted: 23 Sep 2011

See all articles by Charles Murnieks

Charles Murnieks

University of Colorado at Boulder

J. Michael Haynie

Syracuse University - Whitman School of Management

Robert Wiltbank

Willamette University - Atkinson Graduate School of Management

Troy Harting

affiliation not provided to SSRN

Date Written: November 2011

Abstract

Investigating the factors that influence venture capital decision‐making has a long tradition in the management and entrepreneurship literatures. However, few studies have considered the factors that might bias an investment decision in a way that is idiosyncratic to a given investor–entrepreneur dyad. We do so in this study. Specifically, we build from the literature on the ‘similarity effect’ to investigate the extent to which decision‐making process similarity (shared between the investor and the entrepreneur) might bias or otherwise impact the investor's evaluation of a new venture investment opportunity. Our findings suggest venture capitalists evaluate more favourably opportunities represented by entrepreneurs who ‘think’ in ways similar to their own. Moreover, in the presence of decision‐making process similarity, the impacts of other factors that inform the investment decision actually change in counter‐intuitive ways.

Suggested Citation

Murnieks, Charles and Haynie, J. Michael and Wiltbank, Robert and Harting, Troy, ‘I Like How You Think’: Similarity as an Interaction Bias in the Investor–Entrepreneur Dyad (November 2011). Journal of Management Studies, Vol. 48, Issue 7, pp. 1533-1561, 2011, Available at SSRN: https://ssrn.com/abstract=1932523 or http://dx.doi.org/10.1111/j.1467-6486.2010.00992.x

Charles Murnieks (Contact Author)

University of Colorado at Boulder ( email )

1070 Edinboro Drive
Boulder, CO 80309
United States

J. Michael Haynie

Syracuse University - Whitman School of Management

721 University Avenue
Syracuse, NY 13244-2130
United States

Robert Wiltbank

Willamette University - Atkinson Graduate School of Management ( email )

900 State Street
Salem, OR 97301
United States
503 370 6955 (Phone)
503 370 3011 (Fax)

Troy Harting

affiliation not provided to SSRN

No Address Available

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
665
PlumX Metrics