Nascent ventures’ green initiatives and angel investor judgments of legitimacy and funding

This study investigates the effects of entrepreneurs allocating time and resources for pro-social initiatives on the perceptions of potential financial investors. Conducting two experiments, we investigate these effects and report findings that suggest corporate social responsibility initiatives may...

Full description

Saved in:
Bibliographic Details
Published in:Small business economics 2021-12, Vol.57 (4), p.1801-1818
Main Authors: Truong, Yann, Nagy, Brian G.
Format: Article
Language:English
Subjects:
Angel investors
Business and Management
Court decisions
Entrepreneurs
Entrepreneurship
Industrial Organization
Legitimacy
Management
Microeconomics
Private sector
Social responsibility
Social values
Ventures
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This study investigates the effects of entrepreneurs allocating time and resources for pro-social initiatives on the perceptions of potential financial investors. Conducting two experiments, we investigate these effects and report findings that suggest corporate social responsibility initiatives may lead to increased favorable judgments of legitimacy, which in turn, facilitate obtaining funding from financial investors. We also find that these effects are more likely to occur in environments marked by low levels of dynamism. The contribution of this research is both novel and important, as it is concerned with entrepreneurs who are uniquely not necessarily concerned with being regarded as “green,” but may incorporate green initiatives in their for-profit ventures. Therefore, this study improves our understanding of how non-green entrepreneurs who act upon their pro-social values may be perceived by financial investors.
ISSN:0921-898X
1573-0913
DOI:10.1007/s11187-020-00373-5