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

Suting Hong, Guangwei Li, Wangshuai Wang and Zhiqi Zhao

China Economic Review, 2022, vol. 76, issue C

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.

Keywords: Venture competition; Entrepreneurial exploration; Regression discontinuity; Entrepreneurship (search for similar items in EconPapers)
JEL-codes: L26 M13 M21 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:76:y:2022:i:c:s1043951x22001341

DOI: 10.1016/j.chieco.2022.101876

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