When ownership of the venture triggers cofounders’ unethical pro-venture behavior

This research examines a prevailing yet understudied phenomenon—a cofounder's unethical pro-venture behavior. We identify two antecedents - psychological ownership and equity ownership of a cofounder. Data collected from 139 cofounders show a curvilinear relationship between psychological ownership and unethical pro-venture behavior. More interestingly, the incongruence between psychological ownership and equity ownership, particularly when psychological ownership exceeds equity ownership, increases the likelihood of such behavior. •We examine the effect of cofounders' ownership dynamics on unethical pro-venture behavior (UPVB).•The relationship between psychological ownership and UPVB is curvilinear.•The incongruence between a cofounder's psychological ownership and equity ownership increases UPVB.•UPVB is particularly salient when cofounders' psychological ownership exceeds equity ownership.