Out of control or right on the money? Funder self-efficacy and crowd bias in equity crowdfunding
| Autor: | Michael P. Ciuchta, Chaim Letwin, Jeffrey B. Vancouver, Jenni M. Dinger, Regan M. Stevenson |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Self-efficacy
Control theory (sociology) Entrepreneurship 05 social sciences Control (management) 0211 other engineering and technologies 02 engineering and technology Poor quality Management of Technology and Innovation 0502 economics and business Equity crowdfunding Business Business and International Management Marketing Social indicators 050203 business & management 021102 mining & metallurgy |
| Zdroj: | Journal of Business Venturing. 34:348-367 |
| ISSN: | 0883-9026 |
| DOI: | 10.1016/j.jbusvent.2018.05.006 |
| Popis: | Our findings extend the entrepreneurship literature by highlighting the mechanism through which self-efficacy can hinder rather than enhance performance in entrepreneurial settings. Using two complementary experimental studies and a third quasi-experimental field study on equity crowdfunding decisions, we demonstrate that self-efficacy is negatively related to decision-making performance. This relationship is mediated by reduced searching effort. Our research also indicates that high self-efficacy funders tend to exhibit a “crowd bias” whereby they over-weight the opinions of the crowd, increasing the likelihood that they will fund poor quality ventures when such ventures are favored by the crowd. We introduce the term crowd bias and explore its effects, establishing that social indicators in the form of crowd cues can exasperate the negative effects of self-efficacy. |
| Databáze: | OpenAIRE |
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