Cooper, David J. and Saral, Krista Jabs (2010): Entrepreneurship and Team Participation: An Experimental Study.
Download (189kB) | Preview
Entrepreneurs are surprisingly unlikely to have partners. In spite of the obvious advantages to forming partnerships, only a small minority of entrepreneurs (less than 10%, excluding family businesses) have partners. A number of possible explanations exist for this puzzling phenomenon, including an inability to locate suitable partners, fear of free-riding by partners, and a preference for not working in groups. Utilizing a diverse subject population with a high proportion of active entrepreneurs, we use a team production experiment to study whether entrepreneurs prefer to work alone or in a team. The data indicate that entrepreneurs, while no more likely to free-ride on their teammates, are substantially less interested in joining teams. This suggests that efforts to encourage partnership among entrepreneurs may run contrary to the preferences of this group.
|Item Type:||MPRA Paper|
|Original Title:||Entrepreneurship and Team Participation: An Experimental Study|
|Keywords:||Entrepreneurship, Teams, Artefactual Field Experiment|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L26 - Entrepreneurship
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C93 - Field Experiments
|Depositing User:||Krista Jabs Saral|
|Date Deposited:||20. Sep 2010 02:36|
|Last Modified:||19. Mar 2015 08:25|
Babb, E. M., and Babb, S. V. (1992) “Psychological traits of rural entrepreneurs.” Journal of Socio-Economics, 21, 353–362.
Bandiera, O., Barankay, I. and Rasul, I. (2009) “Team Incentives: Evidence from a Field Experiment.” – Working Paper.
Bardsley, N., Cubitt, R., Loomes, G., Moffatt, P., Starmer, C. and Sugden, R. (2009) Experimental Economics: Rethinking the Rules, Princeton University Press.
Becker, G., DeGroot, M. and Marschak, J. (1964) “Measuring utility by a single-response sequential method.” Behavioural Science, vol. 9, pp. 226-32.
Bowen, D. D., and Hisrich, R. D. (1986) “The female entrepreneur: a career development perspective.” Academy of Management Review, 11, 393–407.
Brockhaus, R. H. (1982) “The psychology of the entrepreneur.” in C. A. Kent, D. L. Sexton, and K. H. Vesper (Eds.), Encyclopedia of Entrepreneurship, Prentice-Hall, Englewood Cliffs, NJ, pp. 39–57.
Burns, P (1985) “Experience and Decision Making: A Comparison of Students and Businessmen in a Simulated Progressive Auction.” in V. Smith (ed.), Research in Experimental Economics: Volume 3, Jai, Greenwich, CN, pp. 139-157.
Charness, Gary and Villeval, Marie-Claire (2009) “Cooperation and Competition in Intergenerational Experiments in the Field and the Laboratory.” American Economic Review, 99, pp. 956-978.
Cooper, A. C. and A. V. Bruno (1977) “Success among high-technology firms.” Business Horizons, Vol. 20, Issue 2, pp. 16-22.
Croson, Rachel T.A. (2000) “Thinking Like a Game Theorist: Factors Affecting the Frequency of Equilibrium Play.” Journal of Economic Behavior and Organization, Vol. 41, Issue 3, pp. 299-314.
Durand, D. E. (1975). “Effects of achievement motivation and skill training on the entrepreneurial behavior of black businessmen.” Organizational Behavior and Human Performance, 14, 76–90.
Eckel, C. and Grossman, P. (2008) “Forecasting Risk Attitudes: An Experimental Study Using Actual and Forecast Gamble Choices.” Journal of Economic Behavior and Organization, Volume 68, Issue 1, pp. 1-17.
Elston, J.A., Audretsch, D.B. (2010) “Risk Attitudes, Wealth and Sources of Entrepreneurial Start-up Capital.” Journal of Economic Behavior and Organization, forthcoming.
Elston, J. A., Harrison, G. and Rutström, E. (2005) “Characterizing the entrepreneur using field Experiments” - Working Paper, Max Planck Institute of Economics.
Elston, J.A., Harrison, G., and Rutström, E. (2006) “Experimental Economics, Entrepreneurs and the Entry Decision”- UCF Working Paper
Engelmann, D. and Strobel, M. (2000) "The False Consensus Effect Disappears if Representative Information and Monetary Incentives Are Given.” Experimental Economics, 3(3), 241-260.
Evans, David and Leighton, Linda (1989) “Some Empirical Aspects of Entrepreneurship.” The American Economic Review, Vol. 79, No. 3, pp. 519-535.
Fairlie, R.W. (2005) “Entrepreneurship among Disadvantaged Groups: An Analysis of the Dynamics of Self-Employment by Gender, Race and Education,” Handbook of Entrepreneurship, Volume 2, eds. Simon C. Parker, Zoltan J. Acs, and David R. Audretsch, forthcoming.
Fairlie, Robert and Robb, Alicia (2007) “Why are Black-Owned Businesses Less Successful than White-Owned Businesses: The Role of Families, Inheritances, and Business Human Capital.” Journal of Labor Economics, 25(2): 289-323.
Feeser, H. and Willard, G. (1990) “Founding Strategy and Performance: A Comparison of High and Low Growth High Tech Firms.” Strategic Management Journal, Vol. 11, No. 2, pp. 87-98.
Fischbacher, U. (2007) “Z-Tree: Zurich Toolbox For Readymade Economic Experiments.”Experimental Economics 10 (2), pp. 171-178.
Forbes, D., Borchert, P., Zellmer-Bruhn, M., and Sapienza, H., (2006) “Entrepreneurial Team Formation: An Exploration of New Member Addition.” Entrepreneurship Theory and Practice, Vol.30, 2, pp. 225-248.
Gartner, W. B. (1988) “Who is the entrepreneur? is the wrong question.” American Journal of Small Business, 12: 11-32.
Greiner, Ben (2004) “The Online Recruitment System ORSEE 2.0 - A Guide for the Organization of Experiments in Economics.” - University of Cologne, Working Paper Series in Economics 10.
Grichnik, D., Smeja, A., Welpe, I., (2010) “The Importance of Being Emotional: How do Emotions Affect Entrepreneurial Opportunity Evaluation and Exploitation?” Journal of Economic Behavior and Organization, forthcoming.
Hamilton, B.H. (2000) “Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self‐Employment.” Journal of Political Economy, 108(3), pp. 604–31.
Hamilton, B. H., Nickerson, J. and Owan, H. (2003) “Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation.” Journal of Political Economy, 111:3, pp. 465-97.
Harrison, G.W. and List, J.A. (2004) “Field Experiments” Journal of Economic Literature, Vol. 42, 4, pp. 1009-1055.
Hoffman, E., McCabe, K., Shachat, K. and Smith, V. (1994) “Preferences, property rights, and anonymity in bargaining games.” Games and Economic Behavior, 7, pp. 346–380.
Holt, Charles A. and Laury, Susan K. (2002) “Risk Aversion and Incentive Effects.” American Economic Review, 92, December, pp. 1644-1655.
Kerr, N. L., and Tindale, R. S. (2004) “Group performance and decision making.” Annual Review of Psychology, 55, pp.623-655.
Kocher, M., Strauß, S., and Sutter, M. (2006) “Individual or team decision-making - Causes and consequences of self-selection.” Games and Economic Behavior, 56, pp. 259–270.
List, J.A. (2004) “Young, Selfish and Male: Field Evidence of Social Preferences.” The Economic Journal, 114, pp. 121–149.
Macpherson, D., Prasad, K. and Salmon, T.C. (2009) “Deferred Compensation vs. Efficiency Wages: An Experimental Test of Effort Provision and Self-Selection” - FSU Working Paper.
Niederle, M., and Vesterlund, L. (2007) “Do Women Shy Away from Competition? Do Men Compete Too Much?” Quarterly Journal of Economics, August 2007, Vol. 122, No. 3: 1067-1101.
Reynolds, P.D. and Curtin, R.T. (2008) “Business Creation in the United States: Panel Study of Entrepreneurial Dynamics II Initial Assessment.” Foundations and Trends in Entrepreneurship, Vol. 4, No. 3, pp.155–307.
Reynolds, P.D. and Curtin, R.T. (2007) “Panel Study of Entrepreneurial Dynamics Program Rationale and Description.” www.psed.isr.umich.edu/psed/background. University of Michigan.Web.26 Jan. 2010.
Reynolds, P. and White, S. (1997) The Entrepreneurial Process: Economic Growth, Men, Women, and Minorities, Westport, Connecticut: Quorum Books.
Ruef, M., Aldrich, H., and Carter, N., (2003) “The Structure of Founding Teams: Homophily, Strong Ties, and Isolation among U.S. Entrepreneurs.” American Sociological Review, 68, pp.195–222.
Sandri, S., Schade, C., Mußhoff, O., Odening, M. (2010) “Holding on for too long? An experimental study on inertia in entrepreneurs’ and non-entrepreneurs’ disinvestment choices.” Journal of Economic Behavior and Organization, forthcoming.
Schutjens, V., and Wever, E. (2000) “Determinants of firm success.” Papers in Regional Science, 79, pp.135–153.
Shane, S. (2007) The Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By, New Haven: Yale University Press.
Shapero, A. (1977). “The displaced, uncomfortable entrepreneur.” Psychology Today, 9, 83–88.
Ucbasaran, D., Lockett, A., Wright, M., and Westhead, P., (2003) “Entrepreneurial Founder Teams: Factors Associated with Member Entry and Exit,” Entrepreneurship: Theory and Practice, Vol. 28, pp. 107-128.
van Dijk F., Sonnemans J., and van Winden, F. (2001) “Incentive systems in a real effort experiment.” European Economic Review, 45 187-214.
Wadhwa, V., Aggarwal, R., Krisztina, H. and Salkever, A., (2009) “Making of A Successful Entrepreneur: Anatomy of an Entrepreneur Part II.” Kauffman Foundation Small Research Projects Research Paper No. 2.
Whitt, S. and Wilson, R. (2007) “Public Goods in the Field: Katrina Evacuees in Houston.” Southern Economic Journal, Volume 74, 2, pp. 377–387.