SURVIVAL OF THE VISION: THE INFLUENCE OF ENTREPRENEURIAL VISION (DIS)SIMILARITY BETWEEN ENTREPRENEURS AND POTENTIAL BUYERS ON THE EXIT PROCESS

Principal Topic Entrepreneurs hold entrepreneurial visions – i.e., future-oriented desired images of their business (Preller et al., 2020; Ruvio et al., 2010) – that are tied to their self-identity (Grimes, 2018) and can encompass both economic and noneconomic elements (Preller et al.; Ruvio et al.). While the role of entrepreneurial visions in the initial creation and successful development of entrepreneurial ventures has been studied in some detail (e.g., Preller et al.; Suddaby et al., 2023; Witt), it is not yet clear whether and how these visions affect entrepreneurial exit – the process through which holder and subject of the entrepreneurial vision finally part ways (Wennberg & DeTienne, 2014). Therefore, we integrate the bodies of literature on entrepreneurial exit and entrepreneurial visio! ns to inv estigate how entrepreneurs' attitudes during exit negotiations are influenced by their expectations regarding the preservation of their vision after their involvement. Specifically, previous work suggests entrepreneurs’ satisfaction with past exit experiences depends on whether or not their business continued developing according to their intended entrepreneurial vision (Strese et al., 2018). If this is true, entrepreneurs may incorporate such anticipatory emotions in their attitude throughout the exit process (Graebner & Eisenhardt, 2004; Strese et al., 2018), with real consequences for their negotiation behaviour and ultimate exit outcomes. Accordingly, we predict positive effects of entrepreneurs’ perceptions of similarity (versus dissimilarity) between their own entrepreneurial vision and the ideas a potential buyer has for the future of the business on: a) the entrepreneur’s willingness to enter negotiations; b) their expectations of reaching an agre! ement; an d c) their willingness to play an advisory role after the sale. We also predict that perceived vision similarity has a negative effect on entrepreneurs’ asking price. Finally, entrepreneurs may differ in the extent to which they value the persistence of their entrepreneurial vision beyond their own involvement in the business. We therefore investigate whether three psychological attributes that should relate to how entrepreneurs construe their post-exit relationship with their old venture moderate the above mentioned effects of vision similarity: their identification with the business (Murnieks et al., 2014), legacy orientation (Zacher et al., 2011), and narcissism (Gentile et al., 2013). Method We tested our hypotheses through a pre-registered scenario-based experiment involving 205 US small business entrepreneurs, sampled using an online survey panel (Dynata). Participants had! to descr ibe what their business would look like in ten years if it developed precisely according to their entrepreneurial vision. Next, they ranked 13 generic vision elements obtained from the entrepreneurial vision literature (e.g., “My business creates very innovative products or technologies”), according to the importance these elements have to their own vision. Then, participants read a scenario explaining that, due to personal circumstances, they needed to sell their business and that Robert – a previously unacquainted entrepreneur with a history of success – expressed interest in acquiring it. We manipulated whether Robert's vision aligned with the participant's entrepreneurial vision. In the "similar vision" scenario, Robert's vision aligned with the participant's vision in terms of what is the most and least important vision element, while in the "dissimilar vision" scenario Robert had opposing ideas, such that the participant’s mos! t importa nt element was not deemed important by Robert, and vice versa. Both scenarios concluded with Robert suggesting further discussions and negotiations. Manipulation checks confirmed participants perceived the intended differences in the likelihood that Robert would continue developing the business in line with the participant’s vision, allowing us to assess its impact on participants’ exit negotiation attitudes. Using multiple linear regressions, we tested effects of vision similarity on participants’ a) willingness to enter negotiations, b) expectation of reaching an agreement, c) willingness to continue working with the buyer in an advisory role after exit (all measured on 6-point Likert scales), and on d) the price they would ask compared to an earlier indicated objective valuation. As for the moderators, owner identification with the business (Zhan et al., 2022; 4 items), legacy orientation (Zacher et al., 2011; 5 items) and narcissism (Gentile et al., 2013; 13 item! s) were m easured using adapted versions of established scales. Results Our findings generally confirm a causal relationship between anticipated vision persistence and entrepreneurs’ disposition towards interested buyers in the exit process. We found that, when Robert’s vision for the future of the business was similar (versus dissimilar) to the entrepreneurial vision of the participant, the latter had a higher willingness to enter negotiations, higher expectations of reaching an agreement, and a higher willingness to stay involved in the business in an advisory capacity post exit (the asking price was lower, yet not statistically significantly). Additionally, the effect of vision similarity on the expectation of reaching an agreement was stronger when participants had a higher legacy orientation. Interestingly, and contrary to our prediction, the effect of vision similarity on particip! ants’ w illingness to enter negotiations and on their expectations of reaching an agreement was weaker for more narcissistic participants. This study makes several contributions to the literature. First, it expands our understanding of entrepreneurial exit by emphasizing the importance of entrepreneurs’ envisioned future of the business as an additional emotional value-component affecting the exit process. Second, it offers a novel perspective on entrepreneurial visions that stresses their lasting importance to entrepreneurs, even post exit. Finally, it highlights the often-overlooked role of entrepreneurs' psychological characteristics, such as legacy beliefs and narcissism, in shaping exit attitudes and decisions.