Abstract
I explore the role of trust in acquisitions of entrepreneurial firms, taking a dyadic view that gives equal attention to buyers and sellers. The two parties have asymmetric views regarding whether their counterparts are trustworthy. I outline how these asymmetries emerge, persist, and influence behavior, including tendencies to behave deceptively and to guard against deception. I also find that buyers' and sellers' beliefs concerning whether their counterparts are trustworthy and trusting are often erroneous. I explore the implications of these findings for developing a theory of trust asymmetries and argue that selecting buyers on the basis of trust increases rather than diminishes entrepreneurs' vulnerability.
Original language | English (US) |
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Pages (from-to) | 435-472 |
Number of pages | 38 |
Journal | Academy of Management Journal |
Volume | 52 |
Issue number | 3 |
DOIs | |
State | Published - Jun 1 2009 |
Externally published | Yes |
ASJC Scopus subject areas
- Business and International Management
- General Business, Management and Accounting
- Strategy and Management
- Management of Technology and Innovation