We show that the concept of “entrepreneurial opportunity” in current entrepreneurship process theories is a conflation of opportunities as situations and opportunities as judgments, which are two different concepts both ontologically and epistemologically. Although all entrepreneurs make...

We implement a lab-in-the-field experiment with 334 Turkish loan officers to test for the presence, and learn about the mechanisms, of gender discrimination in small business lending. Each officer reviews multiple real-life loan applications in which we randomize the applicant's gender. While...

We examine the incentives for experimentation in the context of innovation and market competition. A monopolist chooses whether to sell early-stage product or perform costly scale-up R&D. Early market participation facilitates learning about demand but invites knowledge spillovers and...

Lean startup and the idea of a business model have become popular in the context of startup experimentation, innovation and strategy. In this paper we discuss and critique the assumptions behind lean startup, specifically how the approach conceives of hypothesis development and startup...

To truly create new value, you need a theory. A theory helps you see what others can't see. Contrarian or unique beliefs provide the underlying raw material of a firm's theory of value. But beliefs are just rhetoric and cheap talk, unless you identify the specific obstacles and problems that...

We examine the relationship between public firm disclosure and aggregate new business formation. Consistent with the notion that public company disclosures provide information spillovers that reduce the extent of uncertainty about new investment opportunities, we find that increased public firm...

We review the economics of superstars, originally developed for stars in traditional media, and discuss whether they are applicable for the (allegedly) novel phenomenon of stars in social media (influencer, micro-celebrities). Moreover, we analyse potentially new factors for creating social...

Economic activities such as crowdfunding often involve sequential interactions, observational learning, and project implementation contingent on achieving certain thresholds of support. We incorporate endogenous all-or-nothing thresholds in a classic model of information cascade. We find that...

Besides providing financial support for new ventures, crowdfunding can bring additional advantages for entrepreneurs. In this paper, we test the hypothesis that crowdfunding also serves as an informational mechanism. Using a unique dataset built with publicly available data from Internet-based...

Industrial policies of innovation concentrate on funding or encouraging promising innovations entailing growth or that have possibilities of internationalization. However, concrete innovation process happens in and between individuals. Effectuation is a logic that is emergent and iterative in...