TY - JOUR
T1 - Does winning a venture competition encourage entrepreneurial exploration? Evidence from China
AU - Hong, Suting
AU - Li, Guangwei
AU - Wang, Wangshuai
AU - Zhao, Zhiqi
N1 - Publisher Copyright:
© 2022 Elsevier Inc.
PY - 2022/12
Y1 - 2022/12
N2 - 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.
AB - 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.
KW - Entrepreneurial exploration
KW - Entrepreneurship
KW - Regression discontinuity
KW - Venture competition
UR - http://www.scopus.com/inward/record.url?scp=85141240292&partnerID=8YFLogxK
U2 - 10.1016/j.chieco.2022.101876
DO - 10.1016/j.chieco.2022.101876
M3 - Article
AN - SCOPUS:85141240292
SN - 1043-951X
VL - 76
JO - China Economic Review
JF - China Economic Review
M1 - 101876
ER -