The Pitch: Some Face-to-Face Minutes to Build Trust
Abstract
:1. Introduction
2. Entrepreneur–Investor Configuration
2.1. Main Entrepreneur–Investor Configurations
2.2. Decision in a Single-Investor–Single-Entrepreneur Configuration
3. Trust
3.1. Theoretical Approach of Trust Development
- Bestowed trust. This kind of trust appears when several investors compete and decide to focus on choices that create trust. These behaviors aim to increase the value creation and improve the feeling of fairness and the density of relationships (Nooteboom 2002).
- Dyadic trust. This form of trust can be understood as trust under the condition of reciprocity. Behaviors are focused on increasing joint outcomes (Baer et al. 2015; Kong et al. 2014).
- Knowledge-based trust. Implying that a party as trustable based on the diploma or experience of the other (Lewicki et al. 2006).
- Identification-based trust. This theory supposed that trust is based on inclusion in a specific community. Shared culture and values is the foundation of trust (Baer et al. 2018).
3.2. Trust Raising and Trust Damaging Behaviours
3.3. Elements of Trust during Swift Cooperation
4. The Pitch Moment
4.1. The Documentation and Formal Aspects before the Pitch Moment
4.2. The Pitch, the Socializing Moment
4.3. Validation of the Best Partner, Traits and Characteristics
- The Entrepreneur’s Characteristics
- Investors’ Characteristics
5. Conclusions
5.1. Propositions
5.2. Limitations and Further Research Implications
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Multiple Investors | Single INVESTOR | |
---|---|---|
Multiple projects | Bessière et al. (2020) Drover et al. (2017) Wallmeroth et al. (2018) White and Dumay (2020) | Anokhin et al. (2016) Flynn (1991) Gompers et al. (2020) Graebner (2009) Macmillan et al. (1985) |
Single Project | Bubna et al. (2020) Bessière et al. (2020) Drover et al. (2017) Godlewski et al. (2012) Wallmeroth et al. (2018) Wright (2017) | Burger-Helmchen et al. (2020) Hallen and Pahnke (2016) Kaplan et al. (2009) Roberts and Barley (2014) White and Dumay (2020) Wright (2017) |
Key Question | Behavioural | Psychological/Transformational |
---|---|---|
How is trust defined and measured? | Defined in terms of choice behaviour, which is derived from confidence and expectations; assumes rational choices. Measured by cooperative behaviours | Defined in terms of the basis of trust (expected costs and benefits, knowledge of the other, degree of shared values and identity). Measured by scale items where trust is rated along different qualitative indicators of different stages. |
At what level does trust begin? | Trust begins at zero when no prior information is available. Trust initiated by cooperative acts by the other, or indication of their motivational orientation. | Trust begins at a calculative based stage. Trust initiated by reputation, structures that provide rewards for trustworthiness and deterrents for defection. |
What causes the level of trust (distrust) to change over time? | Trust grows as cooperation is extended or reciprocated. Trust declines when the other does not reciprocate cooperation. | Trust grows as cooperation is extended or reciprocated. Trust declines when the other does not reciprocate cooperation. |
Behavioural Trust Dimensions | Manifestation | |||
---|---|---|---|---|
Build Trust | Damage Trust | Violate Trust | ||
Trustworthy | Consistency | Displays of behaviour that confirm promises | Shows inconsistencies between words and actions | Fails to keep promises and agreements |
Benevolence | Exhibits concern about the well-being of others | Shows self-interest ahead of others’ well-being | Takes advantage of others when they are vulnerable | |
Alignment | Actions confirm shared values and/or objectives | Behaviours are sometimes inconsistent with declared values | Takes advantage of others when they are vulnerable | |
Capable | Competence | Displays relevant technical and/or business ability | Shows a lack of context-specific ability | Misrepresents ability |
Experience | Demonstrates relevant work and/or training experience | Relies on inappropriate experience to make decisions | Misrepresents experience | |
Judgment | Confirms ability to make accurate and objective decisions | Relies inappropriately on third parties | Judges others without explanation | |
Trusting | Disclosure | Shares confidential information | Shares confidential information without thinking of consequences | Shares confidential information likely to cause damage |
Reliance | Shows willingness to be vulnerable through delegation of tasks | Reluctant to delegate, or introduces controls on subordinates’ performances | Does not delegate, or blames subordinates for all errors | |
Receptiveness | Demonstrates “coachability” and a willingness to change | Reluctant to follow advice | Refutes advice even in the face of evidence | |
Communicative | Accuracy | Provides truthful and timely information | Unintentionally misrepresents or delays information transmission | Deliberately misrepresents or conceals critical information |
Explanation | Explains details and consequence of information provided | Ignores request for explanations | Dismisses request for explanations | |
Openness | Open to new ideas or new ways of doing things | Does not listen or refutes feedback | Shuts down or undermines new ideas |
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Guimtrandy, F.; Burger-Helmchen, T. The Pitch: Some Face-to-Face Minutes to Build Trust. Adm. Sci. 2022, 12, 47. https://doi.org/10.3390/admsci12020047
Guimtrandy F, Burger-Helmchen T. The Pitch: Some Face-to-Face Minutes to Build Trust. Administrative Sciences. 2022; 12(2):47. https://doi.org/10.3390/admsci12020047
Chicago/Turabian StyleGuimtrandy, Fabien, and Thierry Burger-Helmchen. 2022. "The Pitch: Some Face-to-Face Minutes to Build Trust" Administrative Sciences 12, no. 2: 47. https://doi.org/10.3390/admsci12020047