Founders in the Living-Dead Trap: A Theoretical Exploration at Entrepreneurship’s Dark Core
Journal
Entrepreneurship Research Journal
ISSN
2194-6175
ISSN-Digital
2157-5665
Type
journal article
Date Issued
2016-10
Author(s)
Abstract (De)
This paper explores the concept of the living-dead trap (LDT), a pervasive state of entrepreneurship resulting from the decision to persevere in the operation of a venture in the face of sustained financial underperformance and personal psychological disutility. Financially underperforming firms can survive for long periods, usually with injections of sweat equity and debt, often decimating in the process the capital of their founders and investors as well as the obligations incurred to employees and other creditors. More specifically, this paper suggests a personal composite of specific cognitive and affective processes that leads entrepreneurs to commit to “failing but not failed” projects. That is, to fall into a trap known as the living-dead trap. We posit the living-dead phenomenon as a most pervasive state in firm founding drawing on cognitive and affective perspectives to model the attendant decision-making processes.
Language
English
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
De Gruyter
Volume
6
Number
4
Start page
401
End page
423
Pages
23
Subject(s)
Division(s)
Eprints ID
252482