The framing of fairness by entrepreneurs : determinants and dynamics

This study provides an in-depth examination of the determinants and dynamics of the fairness perceptions of entrepreneurs. Drawing upon prospect theory and organizational justice theory, the fairness evaluations of 15 high-tech academic entrepreneurs in the relation to their university are studied, three of them longitudinally. The data show that entrepreneurs frame their fairness perceptions by utilizing reference points, which to a large extent depend on the experience of the entrepreneur or the entrepreneurial team. The implication is that fairness perceptions of entrepreneurs have to be studied from a dynamic perspective, taking into account the individual entitlements to reference cases. As such, this paper develops a theory of how fairness perceptions affect cooperative behavior of entrepreneurs.