Study of the Principles of Distributive Justice in Entrepreneurial Teams

Abstract

This research is written in order to answer what values and norms determine the way we distribute outcomes, such as rewards and punishment, in more specific money or shares etc, in organizations (e.g. in a company or organization). Which factors determine whether or not a given outcome is treated fair or not? As Morton Deutsch built several hypotheses regarding the conditions which determine the norms which are employed as the basis of distributive justice; equity, equality and need. Out of these norms, the first two are the focus of this research. The equity norm prescribes that distribution of outcomes should be proportional to the individual's contribution such as human resources, time, skills etc. On the other hand, equality norms suggest equal outcomes for everyone no matter how or what their input is. Deutsch suggested that cooperative relations in which the economic productivity or gain is the primary goal, equity will be the dominant norm. In contrast, cooperative relations in which maintaining an enjoyable social relations is the common goal, the equality norm will be dominant factor. From this theory, the application of these norms over entrepreneurial team ventures can be complicated. As of today to the best of our knowledge there is currently no research addressing these questions. To decide which norm will be the main characteristic of basis of distributive justice over different type of entrepreneurial ventures, a quantitative study has been made with a main instrument of a survey that has collected valuable information about ventures background, the members social relationship with each other and friendship degrees, the extent of economical gain and the snapshot of equality or equity balance in these ventures. Study has showed that there is a correlation between the level of friendship the venture founders had in the beginning and the basis of distributive justice they take. As well, the extent of economical gain has a correlation over the level of using equity as the basis of distributive justice.