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Entrepreneurs’ impatience and digital technologies

Author

Listed:
  • S. Basiglio

    (Università Degli Studi Di Bari Aldo Moro, Largo Abbazia S. Scolastica)

  • A. Ricci

    (National Institute for the Analysis of Public Policies)

  • M. Rossi

    (University of Turin)

Abstract

This paper analyzes the impact of entrepreneurs’ preferences (impatience and risk attitudes) on firms’ propensity to invest in both general and digital technologies. Using data from the Rilevazione su Imprese e Lavoro (RIL) survey, conducted on a representative sample of Italian firms, we find that impatience significantly reduces the likelihood of adopting digital investments, even when controlling for risk preferences. To address potential endogeneity and simultaneity concerns, we implement an instrumental variable (IV) strategy, exploiting exogenous variation from exposure to earthquakes. The findings remain robust and highlight the crucial role of impatience in shaping investment decisions, particularly in digital technologies.

Suggested Citation

  • S. Basiglio & A. Ricci & M. Rossi, 2025. "Entrepreneurs’ impatience and digital technologies," Small Business Economics, Springer, vol. 64(4), pages 2035-2060, April.
    • Handle: RePEc:kap:sbusec:v:64:y:2025:i:4:d:10.1007_s11187-024-00974-4
    DOI: 10.1007/s11187-024-00974-4
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    More about this item

    Keywords

    Time preferences; Risk; Investments; Digital technologies;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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