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

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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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Notes

  1. 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).

  2. We thank an anonymous reviewer for this suggestion.

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Funding

This research received financial support from the French National Research Agency through the program"Investments for the Future" under reference number ANR-10-LabX-11-01 (LabEx Entrepreneurship).

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  1. EMLYON Business School, 23 Guy de Collongue, 69130, Ecully, France

    Guillaume Soenen

  2. Department of Psychology, Uppsala University, Blåsenhus von Kraemers allé 1A och 1C, 752 37, Uppsala, Sweden

    Constanze Eib

  3. University of East Anglia, Norwich Business School, Norwich Research Park,, Norwich, NR4 7TJ, UK

    Constanze Eib

  4. Université de Montpellier (Labex Entreprendre - MRM), Montpellier Business School, 5 bd Henri IV - CS 19044, 34967, Montpellier, France

    Olivier Torrès

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Soenen, G., Eib, C. & Torrès, O. The cost of injustice: overall justice, emotional exhaustion, and performance among entrepreneurs: do founders fare better?. Small Bus Econ 53, 355–368 (2019). https://doi.org/10.1007/s11187-018-0052-2

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