How and when can the start-up repair venture capital firms' trust with an informational strategy after task conflict: a moderated mediation model

Task conflict arising from China's dynamic and uncertain entrepreneurial environment highlights a pressing need for the start-up to repair venture capital firms' (VCFs') trust. However, trust repair in the Chinese entrepreneurship context is not well understood. The purpose of this paper is to investigate the strategies, mechanisms, and contingencies involved in the process of the start-up repairing VCFs' trust after task conflict. Drawing on signaling theory, we developed a moderated mediation model that communication openness strengthens the indirect effect of informational strategy on improving trust through reducing perceived risk. Using an experimental vignette approach, we adopted a 2 x 2 between-subject design. We collected data from 310 subjects with working experience in VCFs in China and tested the model using conditional process modeling. The results supported all hypotheses. This paper advances scholarly understanding of the trust repair process in Chinese entrepreneurship and provides practical guidance to start-ups and entrepreneurs.