Emotional Assuring, Trust Building, and Resource Mobilization in Start-Up Organizations

41 Pages Posted: 16 Nov 2009

See all articles by Quy Nguyen Huy

Quy Nguyen Huy

INSEAD

Christoph Zott

University of Navarra, IESE Business School

Date Written: October 1, 2009

Abstract

Based on a five-year field study of six new ventures, we investigate whether and how organization founders use affective influence, a form of emotion management, with diverse stakeholders, specifically investors, board members, customers and employees. We observed wide differences in founders' propensity to use affective influence actions and found that not all affective influence actions were effective in mobilizing resources for the new firm. We identified a particular form of beneficial affective influence that we call "emotional assuring", consisting of affective influence actions aimed at building three dimensions of trust in regard to the new firm: 1) the firm's integrity; 2) the founder's competence as an entrepreneur, and 3) the founder's benevolent character. Although firms that practiced little emotional assuring were able to mobilize adequate resources, just like firms that did so in munificent environments, the latter gained the upper hand and were more resilient in tough economic conditions. We also identified the moderating conditions and limitations of emotional assuring.

Keywords: Affective influence, emotional assuring, emotion, entrepreneurship, organization creation, resource mobilization, trust.

Suggested Citation

Huy, Quy Nguyen and Zott, Christoph, Emotional Assuring, Trust Building, and Resource Mobilization in Start-Up Organizations (October 1, 2009). IESE Business School Working Paper No. 828, Available at SSRN: https://ssrn.com/abstract=1506963 or http://dx.doi.org/10.2139/ssrn.1506963

Quy Nguyen Huy

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

Christoph Zott (Contact Author)

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

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