Authentic passion matters: the role of emotional labor between presenters' passion and investment decision

Abstract

PurposeDrawing from affect as social information (AASI) theory, this study examines how the relationship between perceived passion, quality of the presenter and investment intention is influenced by emotional labor engaged in by the presenter. This study clarifies and deepens the understanding of how passion influences entrepreneurial success by studying the role of emotional labor in the relationship between passion and investment decisions.Design/methodology/approachThis study tested the moderated mediation effects between perceived presenter passion and investor intention to invest using data from 62 presenters' and 169 judges' responses from the 31 judges during a business plan (or “pitch”) competition.FindingsResults confirmed a positive indirect effect of perceived passion on intention to invest, as mediated by the investor's evaluation of the quality of the presenter. Emotional labor moderated the relationship such that low levels of emotional labor engaged in by the presenters strengthened the mediated relationship between perceived passion, quality of the presenter and intention to invest.Originality/valueThe findings suggest that the authenticity of passion (as measured by the degree of emotional labor engaged in by the presenter) influences this dynamic, such that displays of passion that are perceived as being authentic are more likely to lead to an investment decision. Using AASI, this study conceptualized and tested quality of the presenter as an important intervening variable that can help explain the lack of coherent findings. The results supported this conceptualization, providing empirical evidence for the oft-quoted adage “invest in people, not ideas.”