Values and judgment under uncertainty: evidence from venture capitalist assessments of founders

Abstract

We examine how judgments in the context of uncertainty vary, depending on the values of those making these judgments. We test these ideas in the context of venture capitalists' (VCs') evaluations of founders. Drawing on theoretical and empirical research on the role of values in judgment and decision making and on Schwartz's (1992, 1996) conceptualization of the basic motivational dimensions underlying human values, we hypothesize and find that decision makers' process values (i.e., values governing the types of means to an end that an individual values) influence the perceived worth of founders' human capital. We discuss implications of these findings for judgment and decision‐making research, as well as practical implications for entrepreneurs and venture capitalists. Copyright © 2008 Strategic Management Society.