One foot in Babylon, the other in a startup: The influence of job and employment alternatives on joiner commitment
International Journal of Entrepreneurial Behavior & Research
ISSN: 1355-2554
Article publication date: 26 July 2017
Issue publication date: 5 July 2018
Abstract
Purpose
Little is known regarding joiners (i.e. early-stage non-founder entrepreneurial employees) and their commitment to joining a new venture vs pursuing a more rational and stable career path. The purpose of this paper is to bring an understanding to this phenomenon, while adding to various management theories of organizational commitment and entrepreneurship.
Design/methodology/approach
The authors examine how current employment situations and alternative job prospects impact the relationship between joiner perceptions of distributive justice and organizational commitment by utilizing the equity ownership distribution decided upon by the founding team. The hypotheses are tested using data gathered from 117 joiners.
Findings
The findings confirm for traditional organizational research, a positive relationship exists, even in a new venture context, between perceptions of distributive justice and organizational commitment. However, when joiners report having a second (or primary) job, in addition to the new venture, the direct relationship is weakened. In contrast, higher levels of alternative employment options strengthen the relationship between justice and commitment.
Research limitations/implications
Although the authors’ measure of employment options only included a single-item measure, there is precedent in the literature for this approach. Yet, the authors realize this remains a limitation due to the lack of additional information surrounding each joiner’s “other job” characteristics, such as tenure, title, and salary.
Practical implications
Perceptions of fairness and justice appear to provide valuable implications for founders concerned about organizational commitment and employee buy-in when seeking to bring on joiners. Job alternatives and additional employment also provide interesting takeaways for practitioners. The authors suggest that founders take caution when hiring joiners, who have a second (or primary) job, in addition to working for the new venture. Levels of commitment will likely be reduced, to the possible detriment of the new venture.
Originality/value
Although the baseline hypothesis exists in prior literature with respect to established firms, it has not been tested in a new venture context. Furthermore, prior studies within the entrepreneurship literature have yet to examine these issues from the perspective of the joiner and certainly have not taken into account additional employment and employment prospects among these individuals.
Keywords
Citation
Noack, D., Miller, D.R. and Guidice, R.M. (2018), "One foot in Babylon, the other in a startup: The influence of job and employment alternatives on joiner commitment", International Journal of Entrepreneurial Behavior & Research, Vol. 24 No. 5, pp. 1036-1060. https://doi.org/10.1108/IJEBR-08-2016-0273
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited