Entrepreneurs embrace competition: evidence from a lab-in-the-field study

Diemo Urbig, Werner Bönte, Vivien D. Procher, Sandro Lombardo

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

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.

Original languageEnglish
JournalSmall Business Economics
DOIs
Publication statusAccepted/In press - 1 Jan 2019

Fingerprint

Field study
Entrepreneurs
Entrepreneurship
Enjoyment
Factors
Experiment
Economic research
Competitiveness
Joseph Schumpeter
Overconfidence
Psychological
Career choice
Risk taking
Mastery
Economics
Market entry
Achievement motivation
Conceptual framework
Competitive behavior

Keywords

  • Behavioral economics
  • C9
  • D9
  • Enjoyment of competition
  • Entrepreneurship
  • Individual competitiveness
  • L26
  • Lab-in-the-field experiment

Cite this

Urbig, Diemo ; Bönte, Werner ; Procher, Vivien D. ; Lombardo, Sandro. / Entrepreneurs embrace competition : evidence from a lab-in-the-field study. In: Small Business Economics. 2019.
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Entrepreneurs embrace competition : evidence from a lab-in-the-field study. / Urbig, Diemo; Bönte, Werner; Procher, Vivien D.; Lombardo, Sandro.

In: Small Business Economics, 01.01.2019.

Research output: Contribution to JournalArticleAcademicpeer-review

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