City Research Online

Which matters more? Group fear versus hope in entrepreneurial escalation of commitment

Huang, T., Souitaris, V. and Barsade, S. (2019). Which matters more? Group fear versus hope in entrepreneurial escalation of commitment. Strategic Management Journal, 40(11), pp. 1852-1881. doi: 10.1002/smj.3051

Abstract

We examine the influence of two conflicting emotions—group fear and group hope—in entrepreneurial team decision making. We are interested in which emotion will be more strongly related to whethe rentrepreneurial teams escalate their commitment to a currently failingventure versus terminating that venture. Using a longitudinal start-upsimulation, and based on data from 66 teams across 569 decision-making rounds, we find that group “hope trumps fear.” That is, the relationship between group hope and escalating commitment to a failing venture is stronger than the relationship between group fear and terminating that venture. We predict and find that team engagement,measured via video-coded ratings, mediates these relationships. We find partial support for a predicted moderation effect of group friendship strength. Theoretical and managerial implications are discussed.

Publication Type: Article
Additional Information: This is the peer reviewed version of the following article:Huang, TY, Souitaris, V, Barsade, SG. Which matters more? Group fear versus hope in entrepreneurial escalation of commitment. Strat Mgmt J. 2019; 40: 1852– 1881, which is published in final form at https://doi.org/10.1002/smj.3051. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments: Cass Business School > Management
URI: http://openaccess.city.ac.uk/id/eprint/22148
[img] Text - Accepted Version
This document is not freely accessible until 24 May 2021 due to copyright restrictions.

To request a copy, please use the button below.

Request a copy

Export

Downloads

Downloads per month over past year

View more statistics

Actions (login required)

Admin Login Admin Login