Procedural justice theory and entrepreneurship
The theory of procedural justice was introduced by Thibaut and Walker (1975). Thibaut and Walker propose that procedural justice focuses on the processes of justice rather than the outcomes of such processes (i.e., distributive justice), because the processes are more important in the evaluations of participants. Procedural justice theory was later been applied to the organizational strategy context by Kim and Mauborgne (1991), who argue that when implementing global strategies, as long as the decision-making process is deemed fair to stakeholders, then even if an outcome is not distributively advantageous, it may accepted as just. Procedural justice has been used to help explain entrepreneurial success from a financing-availability perspective. Procedural justice may help explain how entrepreneurs successfully manage their investor relationships. According to Sapienza and Korsgaard (1996), w hile entrepreneurs benefit from sharing information with investors, they also may b