(Em)powering the underdog: How power states enhance referral intention-behavior consistency for underdog entrepreneurs

This research aims to address consumers’ referral intention-behavior inconsistency when responding to entrepreneurs who explicitly position themselves as underdogs. In three experiments with referral behavioral outcomes associated with real new ventures, we identify consumers’ power states as a critical moderator and a viable solution to help enhance the correspondence between referral intention and behavior. Specifically, by altering consumers’ power perceptions (Studies 1 and 2) and by offering empowerment strategies via marketing campaigns (Study 3), consumers with a high sense of power are more likely to translate their referral intention for the underdog entrepreneurial endeavor into referral behavior, compared with those with a low sense of power. This research, therefore, provides theoretical, managerial, and organizational insights into how underdog entrepreneurs can effectively employ and benefit from their unique adversity in positioning themselves in the marketplace to pursue entrepreneurial success.