| Creators: |
Giones, Ferran and Wahl, Andreas and Schwarz, Martin |
| Title: |
Deciphering Entrepreneurial Experimentation: Science-Based- vs. Trial-And-Error Preferences in Entrepreneurs |
| Item Type: |
Conference or Workshop Item |
| Event Title: |
44th Babson College Entrepreneurship Research Conference (BCERC) |
| Event Location: |
München, Germany |
| Event Dates: |
5.-8. Juni, 2024 |
| Date: |
June 2024 |
| Divisions: |
Wirtschaftswissenschaften |
| Abstract (ENG): |
Entrepreneurial experimentation serves as an umbrella term for describing action under uncertainty and has been mostly portrayed as a series of trial-and-error experiments or as a theory-based hypothesis testing approach. Whereas the trial-and-error perspective addresses the design and execution of experiments as an almost simultaneous activity, the science-based perspective promotes reflection before action. Previous empirical studies report positive effects between trial-and-error behavior on rapid learning and pivoting, while science-based behavior seems to contribute to more radical pivots and a higher likelihood of success. However, despite the centrality of experimentation in entrepreneurship, we only have a limited understanding of what explains one preference over another and neither if individual or contextual factors drive this preference. Therefore, we intend to identify factors that shape entrepreneurs’ preferences towards entrepreneurial experimentation approaches.
We collected a convenience sample of 322 entrepreneurs in Germany and conducted an inductive analysis of this survey data. In the first step, we adopted existing and validated measurement items that we hypothesized could comprehensively measure each experimentation behavior and ran exploratory and confirmatory factor analysis to extract and confirm the final items as measurements of the respective experimental behavior. In the second step, we created indices for these behaviors and used these variables as dependent variables in linear regression models. Human capital, in terms of prior founding experience or participation in accelerator/incubator programs, contextual factors in terms of the industry, and Founders’ Social Identity, were used as independent variables.
Preliminary results show positive significant relationships between Darwinians and Missionaries and trial-and-error behavior, whereas neither contextual factors nor human capital factors are of statistical relevance. When turning to the science-based behavior we find effects for all founder’s identity types with differing levels of statistical significance, but all in a positive direction. Furthermore, we find positive relationships between a new venture’s status and whether it has had coaching and/or counseling. Our research contributes to the scholarly discussion on experimentation in entrepreneurship by showing the distinct aspects of a science-based behavior profile. Furthermore, we could identify different factors that most likely adapt to a science-based and/or trial-and-error-based strategy. The coexistence of both experimentation types highlights the dynamism of entrepreneurial experimentation approaches and gives evidence of various decision-making processes within entrepreneurs. Recognizing, deciphering, and delineating the distinct experimentation strategies is vital, as this can serve as the foundation for more nuanced and effective entrepreneurial behavior. |
| Forthcoming: |
No |
| Main areas or research: |
Business & Entrepreneurship |
| Language: |
English |
| Citation: |
Giones, Ferran and Wahl, Andreas and Schwarz, Martin
(2024)
Deciphering Entrepreneurial Experimentation: Science-Based- vs. Trial-And-Error Preferences in Entrepreneurs.
In: 44th Babson College Entrepreneurship Research Conference (BCERC), 5.-8. Juni, 2024, München, Germany.
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