Differing perceptions of new venture failure: A matched exploratory study of venture capitalists and entrepreneurs

Citation
Al. Zacharakis et al., Differing perceptions of new venture failure: A matched exploratory study of venture capitalists and entrepreneurs, J SM BUS M, 37(3), 1999, pp. 1-14
Citations number
41
Categorie Soggetti
Management
Journal title
JOURNAL OF SMALL BUSINESS MANAGEMENT
ISSN journal
00472778 → ACNP
Volume
37
Issue
3
Year of publication
1999
Pages
1 - 14
Database
ISI
SICI code
0047-2778(199907)37:3<1:DPONVF>2.0.ZU;2-6
Abstract
Using an attribution theory viewpoint this exploratory study examines new v enture failure from the perspectives of both the entrepreneur and the ventu re capitalist (VC). Contrary to what should be expected, given attribution theory, entrepreneurs acknowledge that internal causes contributed to their venture's failure. On the other hand VCs attributed the failure to externa l causes, differing from the enterpreneur's perception of the event. Both t he entrepreneur and VC were more likely to attribute the failure of other v entures to internal factors (the fundamental attribution error). This study suggests that entrepreneurs and VCs view failure differently. These differ ences might cause misapplication of scarce entrepreneurial resources.