There is some evidence suggesting that the stories that entrepreneurs tell about their ventures can influence their ability to raise capital from investors. This effect has been attributed to the legitimating role that stories play in influencing investors' evaluative judgments. However, very little is known about the specific effects that entrepreneurial stories may have on investors' actual assessments. In this paper, I extend current theory on the role of entrepreneurial storytelling on the resource acquisition process by proposing a theoretical model that further explicates some of the specific effects that entrepreneurial stories may have on the evaluative judgments of early-stage investors. Drawing on theories of narrative persuasion I present a multiple mediation model, in which entrepreneurial storytelling is proposed to influence a number of person-specific cognitive and affective states that subsequently influence the formation of the evaluative judgments.

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Villanueva Aguila, Jaume

The effects of entrepreneurial stories on investors' opportunity evaluations: A theoretical model

There is some evidence suggesting that the stories that entrepreneurs tell about their ventures can influence their ability to raise capital from investors. This effect has been attributed to the legitimating role that stories play in influencing investors' evaluative judgments. However, very little is known about the specific effects that entrepreneurial stories may have on investors' actual assessments. In this paper, I extend current theory on the role of entrepreneurial storytelling on the resource acquisition process by proposing a theoretical model that further explicates some of the specific effects that entrepreneurial stories may have on the evaluative judgments of early-stage investors. Drawing on theories of narrative persuasion I present a multiple mediation model, in which entrepreneurial storytelling is proposed to influence a number of person-specific cognitive and affective states that subsequently influence the formation of the evaluative judgments.
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The effects of entrepreneurial stories on investors' opportunity evaluations: A theoretical model
Villanueva Aguila, Jaume
2013 Academy of Management Annual Meeting
Academy of Management (AOM)
Briarcliff Manor (United States of America), 09/08/2013 - 13/08/2013

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