Abstract

This research examines a prevailing yet understudied phenomenon—a cofounder's unethical pro-venture behavior. We identify two antecedents - psychological ownership and equity ownership of a cofounder. Data collected from 139 cofounders show a curvilinear relationship between psychological ownership and unethical pro-venture behavior. More interestingly, the incongruence between psychological ownership and equity ownership, particularly when psychological ownership exceeds equity ownership, increases the likelihood of such behavior.

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