Entrepreneur fund-seeking: toward a theory of funding fit in the era of equity crowdfunding.

Why do entrepreneurs prefer to seek one equity form of funding over another? To address this question, we develop a contingency-based model of perceived funding fit that delineates several factors that influence strategic fund-seeking decisions by entrepreneurs. In prior research, entrepreneur fund-seeking has largely been explained using models that rely on rule-based approaches (e.g., the pecking order assumption) or value capture considerations. In contrast, we propose a dynamic contingency-based model that delineates several factors that influence entrepreneur perceptions of funding fit over and above transactional efficiency, including atypical value creation from the fundraising process itself and external stakeholder values. We inductively assess our model in the context of equity crowdfunding (ECF) and find that perceived funding fit can motivate some strategic fund-seekers to opt to pursue ECF, even when they have a reasonable opportunity to obtain other more established sources of funding such as angel or seed-stage venture capital. This indicates that ECF in several cases is not a funding mode of last resort as proposed in prior literature. Plain English Summary Raising capital is a complex and dynamic process. Strategic entrepreneurs seek "funding fit" for their particular ventures leading some to opt for less established forms of funding such as equity crowdfunding for a variety of reasons beyond efficiency. Prior venture funding research has largely taken the view of the investor, emphasizing what entrepreneurs must do to win the favor of angel investors and other seed funders, and deeming equity crowdfunding (ECF) a funding mode of last resort for discouraged entrepreneurs. Inductively analyzing hundreds of regulatory filings, entrepreneur interviews, public information, and media pieces about ECF-funded firms, we find evidence that in several cases, strategic entrepreneurs may prefer to opt for ECF if they perceive it to be a better fit due to novel forms of nonfinancial value. We explain our findings by proposing an emergent contingency-based model of "funding fit."

Extending the trickle-down model of abusive supervision. The role of moral disengagement.

A scarce amount of dark-side leadership research is replicated. As such, the goal of our research is to replicate and extend the trickle-down model of abusive supervision. To accomplish this goal, we draw upon social cognitive theory and utilize the foundational work of Mawritz, Mayer, Hoobler, Wayne, and Marinova (2012) in an effort to affirm their novel findings. Similarly, the data from our multi-source field study offers additional support regarding the trickle-down model of abusive behavior across 3 hierarchical levels (i.e., managers, supervisors, subordinates). Additionally, while remaining consistent within our social cognitive framework, we examine and explain the mediating effect of supervisory moral disengagement with respect to the trickle-down effect of abusive behavior. The integration of supervisory moral disengagement as an underlying role-modeling mechanism further enhances our understanding of this particular trickle-down effect, as we directly measured a role-modeling mechanism that was alluded to in the original study.

Breaking the cycle of abusive supervision: How disidentification and moral identity help the trickle-down change course.

Studies show that abusive leader behaviors "trickle down" to lower organizational levels, but this research ignores that many abused supervisors do not perpetuate abuse by harming their own subordinates. Drawing on social-cognitive theory and related research, we suggest abused supervisors might defy rather than emulate their managers' abusive behavior. Specifically, we predicted that some abused supervisors-namely, those with strong moral identities-might in effect "change course" by engaging in less abuse or demonstrating ethical leadership with their subordinates to the extent they disidentify with their abusive managers. Across 2 experiments (n = 288 and 462 working adults, respectively) and a field study (n = 500 employees and their supervisors), we show that relations between manager abuse and supervisors' abusive and ethical behaviors were carried by supervisors' disidentification, and that the direct and indirect effects of manager abuse were stronger for supervisors with comparatively higher moral identity levels. We discuss our findings' implications and avenues for future research. (PsycINFO Database Record (c) 2018 APA, all rights reserved).