How can Venture Capitalists-Owner Managers conflicts be managed? If you want peace, agree to keep the peace

Abstract

This article identifies four mechanisms (talking continuously; showing commitment to a community; strengthening operational focus; and accepting difficult decisions) in Venture Capitalist (VC) – Owner Manager (OM) relationships that serve to manage tensions and thus avert detrimental situations, namely conflicts. The results enrich the literature on VC-OM conflict by mobilizing a tension intensity variable and by providing evidence on how tense critical events can be managed. We offer recommendations and insight into managing tension intensity, which can help VCs and OMs derive the potential benefits of opposing viewpoints while avoiding major disruptions in their relationships.