Power Distance Orientations Fits in the Entrepreneurial Team

Abstract

Entrepreneurial team collapse and co-founders turnover is a commonly found phenomenon with poor explanations. Recognizing that entrepreneurial team development is a dynamic process, we propose that power distance orientations of the team leader and co-founders will play an important role in predicting the fate of the team. Particularly, we emphasize on the fit of power distance orientation between the leader entrepreneur and the co-founders. We propose that high power distance orientation of leader entrepreneur will lead to high turnover intention, where low level of trust and perceived procedural and interpersonal justice by the co-founders are possible mediators. The effect of leader entrepreneur¡¯s power distance orientation on trust and procedural justice is stronger for co-founders low in power distance orientation, showing the effect of unfitness.