Does winning a venture competition encourage entrepreneurial exploration? Evidence from China

Suting Hong, Guangwei Li*, Wangshuai Wang, Zhiqi Zhao

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

This paper examines whether winning venture competition spurs entrepreneurs to carry out entrepreneurial exploration. We use data from new venture competitions organized by Shanghai municipal government that are open to innovative small ventures. Using a regression discontinuity design, we show that winning leads to a higher level of entrepreneurial explorations in the year following the competition. However, this effect is reduced for female entrepreneurs, and entrepreneurs whose affiliated ventures have a shorter time of operation. Our findings are consistent with existing theories about entrepreneurship and behavioral economics, including entrepreneurial experimentation and “house money” effect.

Original languageEnglish
Article number101876
JournalChina Economic Review
Volume76
DOIs
Publication statusPublished - Dec 2022

Keywords

  • Entrepreneurial exploration
  • Entrepreneurship
  • Regression discontinuity
  • Venture competition

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