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Small Business Economics

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11-05-2018

The cost of injustice: overall justice, emotional exhaustion, and performance among entrepreneurs: do founders fare better?

Authors: Guillaume Soenen, Constanze Eib, Olivier Torrès

Published in: Small Business Economics | Issue 2/2019

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Abstract

In this paper, we build on the allostatic load model, developed in stress research, to explore the impact of entrepreneurs’ overall justice perceptions on emotional exhaustion and firm performance. Results revealed that the relationship between overall justice and emotional exhaustion was mediated by rumination about work. Further, building on recent work by Baron et al. (Journal of Management, 42(3), 742–768, 2016), which highlighted that company founders have more resources to deal with stress, we hypothesized that the relationship between rumination about work and emotional exhaustion was moderated by whether the entrepreneur was the founder of the venture or not. Results revealed that indeed founders appeared to be immune to the consequences of rumination about work elicited by injustice at work, while non-founders suffered from it. Moreover, emotional exhaustion was related to the monthly firm performance. Implications for research and practice are discussed.

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Resampling procedures allow for better estimation of confidence intervals and overall better assessment of mediation effects than the traditional Baron and Kenny approach and Sobel test (MacKinnon et al. 2004).

We thank an anonymous reviewer for this suggestion.

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Title: The cost of injustice: overall justice, emotional exhaustion, and performance among entrepreneurs: do founders fare better?
Authors: Guillaume Soenen
Constanze Eib
Olivier Torrès
Publication date: 11-05-2018
Publisher: Springer US
Published in: Small Business Economics / Issue 2/2019
Print ISSN: 0921-898X
Electronic ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-018-0052-2

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