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Star entrepreneurs on digital platforms: Heavy-tailed performance distributions and their generative mechanisms

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  • Gala, Kaushik
  • Schwab, Andreas
  • Mueller, Brandon A.

Abstract

This study extends emerging theories of star performers to digital platforms, an increasingly prevalent entrepreneurial context. It hypothesizes that the unique characteristics of many digital platforms (e.g., low marginal costs, feedback loops, and network effects) produce heavy-tailed performance distributions, indicating the existence of star entrepreneurs. Using longitudinal data from an online learning platform, proportional differentiation is identified as the most likely generative mechanism and lognormal distribution as the most likely shape for distributions of entrepreneurial performance in digital contexts. This study contributes theory and empirical evidence for non-normal entrepreneurial performance with implications for scholars and practitioners of digital entrepreneurship.

Suggested Citation

  • Gala, Kaushik & Schwab, Andreas & Mueller, Brandon A., 2024. "Star entrepreneurs on digital platforms: Heavy-tailed performance distributions and their generative mechanisms," Journal of Business Venturing, Elsevier, vol. 39(1).
    • Handle: RePEc:eee:jbvent:v:39:y:2024:i:1:s0883902623000617
    DOI: 10.1016/j.jbusvent.2023.106347
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    More about this item

    Keywords

    Digital platforms; Entrepreneurial performance; Star entrepreneurs; Lognormal performance distributions; Proportional differentiation;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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