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Does winning a venture competition encourage entrepreneurial exploration? Evidence from China


  • Hong, Suting
  • Li, Guangwei
  • Wang, Wangshuai
  • Zhao, Zhiqi


This paper examines whether winning venture competition spurs entrepreneurs to carry out entrepreneurial exploration. We use data from new venture competitions organized by Shanghai municipal government that are open to innovative small ventures. Using a regression discontinuity design, we show that winning leads to a higher level of entrepreneurial explorations in the year following the competition. However, this effect is reduced for female entrepreneurs, and entrepreneurs whose affiliated ventures have a shorter time of operation. Our findings are consistent with existing theories about entrepreneurship and behavioral economics, including entrepreneurial experimentation and “house money” effect.

Suggested Citation

  • Hong, Suting & Li, Guangwei & Wang, Wangshuai & Zhao, Zhiqi, 2022. "Does winning a venture competition encourage entrepreneurial exploration? Evidence from China," China Economic Review, Elsevier, vol. 76(C).
  • Handle: RePEc:eee:chieco:v:76:y:2022:i:c:s1043951x22001341
    DOI: 10.1016/j.chieco.2022.101876

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    More about this item


    Venture competition; Entrepreneurial exploration; Regression discontinuity; Entrepreneurship;
    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
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics


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