When do Entrepreneurs Benefit from Acting Like Scientists? A Field Experiment in the UK

39 Pages Posted: 28 Jul 2021

See all articles by Elena Novelli

Elena Novelli

City University London - Sir John Cass Business School

Chiara Spina

INSEAD

Date Written: July 28, 2021

Abstract

Prior research suggests that firms in entrepreneurial settings benefit from a scientific approach to decision making that combines cognitive and evidence-based components. But to what extent and under what conditions is the scientific approach to decision-making associated with superior performance? To address this question, we conducted a field experiment with 261 UK entrepreneurs at different stages of business development, training half of them on a scientific approach to decision making. Our results show that firms make the most of scientific decision-making when they are at a more advanced stage of development, as they generate higher revenues and productivity. We elaborate on the mechanisms behind this result and the implications for future research.

Keywords: Entrepreneurial Strategy, Experimentation, Field Experiment, Innovation, Value Creation

Suggested Citation

Novelli, Elena and Spina, Chiara, When do Entrepreneurs Benefit from Acting Like Scientists? A Field Experiment in the UK (July 28, 2021). INSEAD Working Paper No. 2021/40/EFE, Available at SSRN: https://ssrn.com/abstract=3894831 or http://dx.doi.org/10.2139/ssrn.3894831

Elena Novelli

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

Chiara Spina (Contact Author)

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

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