The Dark Side of Entrepreneurial Framing: A Process Model of Deception and Legitimacy Loss

Abstract

We develop a process model of how and why entrepreneurial framing can lead to deception and result in the loss of legitimacy in new ventures. We draw on the literature on framing and temporal construal theory to theorize how the emergence of a gap between expectations set during start-up and the realities that entrepreneurs encounter during implementation can trigger entrepreneurial deception when audiences seek concrete details in exchange for their continued support. Entrepreneurs may engage in further deception and moral disengagement to the extent that the gap remains as they pursue harder-to-accomplish stretch goals to maintain support. We also theorize what happens when entrepreneurial deception is publicly called out, resulting in a potentially catastrophic loss of legitimacy. Overall, we offer a cautionary note on entrepreneurship by exploring one aspect of its dark side.