The Effects of Perceived Control on Venture Capitalist Investment Decisions: A Configurational Perspective

Will Drover, Matthew S. Wood, G. Tyge Payne

Research output: Contribution to journalArticle

24 Scopus citations

Abstract

Drawing on agency and configurations theories, this study examines how perceived level of control over the entrepreneur influences venture capitalist (VC) decision making. We model the direct effects of perceived control and the interactive effects of control with entrepreneurial prestige and opportunity attractiveness to determine how various combinations of factors influence VCs' willingness to invest. We test our conceptualizations using conjoint analyses of 552 VC investment decisions. The results show that perceived control is directly related to investment likelihood, but different configurations of control, entrepreneur prestige, and opportunity attractiveness result in different outcomes. Our findings support a configurational perspective of VC decision making.

Original languageEnglish
Pages (from-to)833-861
Number of pages29
JournalEntrepreneurship: Theory and Practice
Volume38
Issue number4
DOIs
StatePublished - Jul 2014

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