Don't calm down! How affective climate emerges in start‐ups

Abstract Research Summary Different types of affective climates—norms related to the experience, expression, use, and regulation of emotions—have been shown to impact organizational outcomes. However, we know less about how these climates emerge. This study investigates the emergence of affective climates through a 22‐month longitudinal multiple‐case study of five early‐stage start‐ups. Our analysis revealed that an affective climate of high authenticity emerged in start‐ups through three key mechanisms: the interaction between positive and negative emotions, constructive meta‐emotions, and interpersonal emotion regulation characterized by emotional validation and problem‐solving. Our findings contribute to the understanding of affective climate emergence and offer nuanced insights into how founders, managers, and teams can cultivate constructive emotional dynamics in highly uncertain, fast‐paced environments. Managerial Summary We explore how affective climate emerges through a longitudinal case study of five start‐ups. Affective climate describes norms and assumptions concerning the experience, expression, use, and regulation of emotions. Research suggests that an affective climate of high authenticity—meaning that members feel free to express their actual emotions—contributes to creativity and performance while reducing burnout. However, prior research offers few insights into how and why different affective climates emerge in start‐ups. We find that managers and founders may shape their organization's affective climate toward high authenticity by fostering positive emotions, through an accepting attitude toward their own negative emotions, and by validating employees' emotions. By doing so, managers and founders can foster healthy emotional dynamics in their start‐ups.