The implications of entrepreneurs' previous experiences on using a scientific approach to decision making: Evidence from a randomized control trial

Abstract

This study aims to investigate if previous managerial or entrepreneurial experiences of entrepreneurs could moderate the use of a scientific approach to decision-making. To test this, we embedded a field experiment involving 132 real start-ups from Italy. We collected data on performances using phone calls for 64 weeks. Using econometrics analysis, we find that previous managerial or entrepreneurial experiences moderate the effect of this entrepreneurial decision-making approach on start-up performances, such as whether they decided to terminate their entrepreneurial idea, the number of pivots and the amount of revenue gained. The moderating effects differ according to the experiences possessed by entrepreneurs.