TY - GEN A1 - Mochkabadi, Kazem A1 - Kleinert, Simon A1 - Urbig, Diemo A1 - Volkmann, Christine T1 - Innovativeness and Legitimacy in Equity Crowdfunding T2 - Academy of Management Proceedings N2 - In this study, we examine the link between new venture innovativeness and legitimacy. While legitimacy research often assumes that all new ventures suffer in the same way from the liability of newness, entrepreneurial ventures may differ substantially in their degree of innovativeness, introducing either highly new or relying on established technologies. We argue that radically innovative new ventures face severe liability of newness and therefore are less successful when raising early stage equity financing. Further, we argue that this negative effect should turn positive if the new ventures are able to showcase legitimacy. An observational and a complementary experimental study support our arguments. Surprisingly, for non-innovative or incremental innovative ventures establishing legitimacy seems to provide little gains. KW - New ventures KW - legitimacy KW - innovation KW - crowdfunding Y1 - 2020 UR - https://journals.aom.org/doi/pdf/10.5465/AMBPP.2020.49 U6 - https://doi.org/10.5465/AMBPP.2020.49 N1 - best paper proceedings, that is, a 6 pages version of the study VL - 2020 IS - 1 SP - 1 EP - 6 ER - TY - GEN A1 - Urbig, Diemo A1 - Mühlfeld, Katrin A1 - Witteloostuijn, Arjen van T1 - Country Differences in Default Social Heuristics and the Foreign Language Effect T2 - Academy of Management Proceedings N2 - Individual-level effects of foreign language use on decision making are often related to shifts between more intuitive/heuristic and more deliberate/rational decision making. Intuitive behavior is substantially influenced by socialization and context. Consistently, meta-studies on the relationships between the use of intuition and specific behaviors in cooperation dilemmas reveal cross-country variation, suggesting that how foreign language use affects decision making might as well be highly dependent on the specific country context. This creates challenges to single-country studies. We, therefore, replicate in Germany a single-country study conducted in the Netherlands. While Germany and the Netherlands are quite similar on general cultural criteria, a recent meta-study on the use of heuristics in cooperation dilemmas suggests important differences regarding default social heuristics. This study thus aims at testing whether the cooperation-reducing effect of using English as a foreign language as found for the Netherlands generalizes across other country/mother tongue settings, which potentially differ considerably in terms of default social heuristics. An empirical comparison between Germany and the Netherlands replicates related effects from different types of experiments and supports the basic mechanism that supposedly underlies foreign language effects–i.e. a tendency towards more reflective decision making, independent of any specific heuristics–, but also suggests significant differences in ultimate outcomes, presumably due to cross-country differences in social heuristics. Y1 - 2020 U6 - https://doi.org/10.5465/AMBPP.2020.15110abstract VL - 2020 IS - 1 ER - TY - GEN A1 - Urbig, Diemo A1 - Bönte, Werner A1 - Procher, Vivien D. A1 - Lombardo, Sandro T1 - Entrepreneurs embrace competition: evidence from a lab-in-the-field study T2 - Small Business Economics N2 - Referring to Isreal M. Kirzner (1973) and Schumpeter (1934), who emphasized the competitive nature of entrepreneurship, this study investigates whether potential and revealed entrepreneurs are more likely to seek competition than non-entrepreneurs. We provide a conceptual framework that links entrepreneurship to three facets of individual competitiveness drawn from economic, entrepreneurship, and psychological research: a desire to win, striving for personal development, and an enjoyment of competition. Following economic research linking competitive behavior in experiments to career choices, we conduct a lab-in-the-field study and demonstrate that entrepreneurs are more likely to enter competitions than non-entrepreneurs. Accounting for individual desires to win and mastery-related achievement motivations, our results indicate that entrepreneurs tend to enter competition for the sake of competition itself rather than for the prospect of winning it or personal development. Our results suggest that enjoyment of competition might be an additional factor driving entrepreneurs’ market entry decisions beyond well-known factors like overconfidence and risk-taking. KW - Enjoyment of competition KW - Individual competitiveness KW - Entrepreneurship KW - Behavioral economics KW - Lab-in-the-field experiment Y1 - 2020 UR - https://link.springer.com/article/10.1007/s11187-019-00141-0 U6 - https://doi.org/10.1007/s11187-019-00141-0 SN - 0921-898X VL - 55 SP - 193 EP - 214 ER - TY - GEN A1 - Urbig, Diemo A1 - Mühlfeld, Katrin A1 - Procher, Vivien D. A1 - Witteloostuijn, Arjen van T1 - Strategic decision-making in a global context: The comprehension effect of foreign language use on cooperation T2 - Management International Review N2 - With increasing globalization comes an increasing number of people communicating in foreign languages when making strategic decisions. We develop a theoretical model in which comprehension constitutes an essential mediator for the effects of using a foreign language on cooperation in global business contexts. To resolve conceptual ambiguities, we separate information processing leading to comprehension from decision-making employing the previously comprehended information. For the first step, we demonstrate how using a foreign language can, depending on individuals’ foreign language proficiencies, trigger both lower and higher comprehension. Variation in comprehension is, as a second step and independent of its cause, negatively associated with individuals’ tendencies to cooperate. Our experimental results support our theorizing. This study provides new micro-foundations for strategic decision-making and discusses unreliable cooperation as a potentially destructive managerial group dynamic within foreign language contexts. KW - Foreign language use KW - Information comprehension KW - Judgment and decision-making KW - Strategic decision-making KW - International management Y1 - 2020 UR - https://link.springer.com/article/10.1007%2Fs11575-020-00412-z U6 - https://doi.org/10.1007/s11575-020-00412-z SN - 0938-8249 VL - 60 SP - 351 EP - 385 ER - TY - GEN A1 - Mochkabadi, Kazem A1 - Kleinert, Simon A1 - Urbig, Diemo A1 - Volkmann, Christine T1 - Innovativeness and legitimacy in equity crowdfunding T2 - G-Forum conference 2020 - Virtual Edition, 24th Annual Interdisciplinary Conference on Entrepreneurship, Innovation and SMEs N2 - We examine how radical innovativeness affects how new ventures can establish legitimacy. While legitimacy research often assumes that new ventures similarly suffer from the liability of newness, radically innovative new ventures face stronger liabilities and are less successful when raising early-stage equity financing. Consequently, they may benefit more from identity-related, associative, and organizational legitimacy-building mechanisms, which mitigate the adverse effect and may turn radical innovativeness into an asset. Campaign-level observations for technology ventures and complementary individual-level experimental analyses of financial resource providers’ legitimacy assessments suggest that legitimation mechanisms are less effective for less radically innovative ventures and might even be counter-productive. KW - new venture KW - legitimacy KW - innovation KW - crowdfunding Y1 - 2020 UR - https://www.fgf-ev.de/wp-content/uploads/2020/10/G-Forum-2020-Virtual-Edition-Programm.pdf VL - 24 SP - 2 ER -