Hypotheses and Combined Theoretical Model

Abstract

In this chapter, I derive hypotheses from the theoretical foundations of job matching theory, corporate governance theory pertaining to venture capital funded firms, as well as from organizational psychology as laid out in chapter 2. In accordance with the conceptual framework introduced in chapter 1, I present hypotheses for each step of the three-tier framework. Consistent with Figure 2.1, I use the presented theories to motivate my hypotheses, which I differentiate into selection-related, outcome-related, and performance-related propositions. In section 3.1, I derive selection-related hypotheses on the antecedents of turnover based on job matching and corporate governance theory. In this section, I only look at factors that explain founders’ leaving from their initial positions. In section 3.2, I consider turnover outcomes and discuss under which conditions rotation or departure are most likely to occur. Outcome-related hypotheses are derived from job matching theory as well as from organizational psychology. Section 3.3 covers hypotheses on the influence of turnover, rotation, and departure on start-up performance, which are all grounded in job matching theory. Finally, in section 3.4, I combine all derived hypotheses into one coherent and comprehensive theoretical framework which lays the foundation for subsequent empirical modelling.