'I like how you think': Similarity as an interaction bias in the investor-entrepreneur dyad

Charles Y. Murnieks, J. Michael Haynie, Robert E. Wiltbank, Troy Harting

Research output: Contribution to journalArticlepeer-review

57 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)1533-1561
Number of pages29
JournalJournal of Management Studies
Volume48
Issue number7
DOIs
StatePublished - Nov 1 2011

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Management of Technology and Innovation

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