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How entrepreneurs regulate stakeholders' emotions to build new organizations

Author: Huy, Quy Nguyen ; Zott, ChristophINSEAD Area: Entrepreneurship and Family Enterprise ; Strategy Series: Working Paper ; 2007/59/ST/EFE Publisher: Fontainebleau : INSEAD, 2007.Language: EnglishDescription: 42 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: This study explores how entrepreneurs regulate the emotions of their ventures' stakeholders, and how such emotion regulation affects the founders' ability to create new organizations. We find that some organization founders are much more versatile than others in regulating emotions. They perform two forms of emotion regulation actions involving other stakeholders, which we call episodic and institutionalizing. Our data indicate that such versatile emotion regulation facilitates the organization building process in that it helps founders mobilize resources, and thereby enhances the nascent organization's resilience to deal with survival and growth challenges.
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This study explores how entrepreneurs regulate the emotions of their ventures' stakeholders, and how such emotion regulation affects the founders' ability to create new organizations. We find that some organization founders are much more versatile than others in regulating emotions. They perform two forms of emotion regulation actions involving other stakeholders, which we call episodic and institutionalizing. Our data indicate that such versatile emotion regulation facilitates the organization building process in that it helps founders mobilize resources, and thereby enhances the nascent organization's resilience to deal with survival and growth challenges.

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