Harry Scarbrough is a professor at Keele Management School, Keele University, Newcastle-under-Lyme, UK.
Exploring the Role of Trust in the Deal-Making Process for Early-Stage Technology Ventures
Article first published online: 26 MAR 2013
© 2013 Baylor University
Entrepreneurship Theory and Practice
Volume 37, Issue 5, pages 1203–1228, September 2013
How to Cite
Scarbrough, H., Swan, J., Amaeshi, K. and Briggs, T. (2013), Exploring the Role of Trust in the Deal-Making Process for Early-Stage Technology Ventures. Entrepreneurship Theory and Practice, 37: 1203–1228. doi: 10.1111/etap.12031
This work was supported by the UK's Economic and Social Research Council (Grant Number RES-185-31-0021), under the “Evolution of Business Knowledge” program.
- Issue published online: 10 SEP 2013
- Article first published online: 26 MAR 2013
- UK's Economic and Social Research Council. Grant Number: RES-185-31-0021
The deal-making process requires entrepreneurial actors to create and maintain wide networks of weak ties while simultaneously developing stronger collaborative ties that will enable opportunities to be realized. We currently lack an adequate account of how these activities are integrated by deal-makers under conditions of risk and uncertainty. In an empirical study of deal making in early-stage technology ventures, we find that deal-makers rely on different forms of trust in the early and later phases. Based on this study, we develop a process model and propositions on the role of trust in integrating strong and weak ties in deal making.