We report results of a natural field experiment conducted at a medical organization that sought contribution of public goods (i.e., projects for organizational improvement) from its 1200 employees. Offering a prize for winning submissions boosted participation by 85 percent without affecting the quality of the submissions. The effect was consistent across gender and job type. We posit that the allure of a prize, in combination with mission-oriented preferences, drove participation.
IGL Trials Database
IGL curates a database with randomised controlled trials in the field of innovation, entrepreneurship and growth. Browse our list of topics, see it as a map, or use the search function below.
Search costs continue to powerfully shape (and limit) the formation of collaborations between scientists. Formation of collaborations appears
to be highly sensitive to information-rich face-to-face interactions, which existing communications technologies may not sufficiently substitute.
We employ a discrete choice experiment in the employment process for a national call center to estimate the willingness to pay distribution for alternative work arrangements relative to traditional office positions. Most workers are not willing to pay for scheduling flexibility, though a tail of workers with high valuations allows for sizable compensating differentials. The average worker is willing to give up 20 percent of wages to avoid a schedule set by an employer on short notice, and 8 percent for the option to work from home.
For young firms, the effect of business training on hiring a first employee remains ambiguous, and more research is needed to understand the relationships behind job creation by entrepreneurs.
It is well-established that the effectiveness of pay-for-performance (PfP) schemes depends on employee- and organization-specific factors. However, less is known about the role of external forces. Investigating the role of market competition on the effectiveness of PfP, we theorize that there are two counteracting effects – business stealing and competitor response – that jointly generate an inverted U-shape relationship between PfP effectiveness and competition.
A 5-day enterprise training programme for women in Kenya. Results forthcoming.
U.S. intellectual property law is firmly rooted in utilitarian principles. Copyright law is viewed as a means to give proper monetary incentives to authors for their creative effort. Many European copyright systems pursue additional goals: Authors have the right to be named as author, to control alterations and to retract their work in case their artistic beliefs have changed. Protecting these “moral rights” might be justified by the preferences of typical authors.
Using a randomized control trial, we evaluated the effect of a financial literacy program on the level of debt and on formal access to credit in Chile. We use a sample of beneficiaries of a publicly run micro-entrepreneurship program. We evaluated the program using administrative data with information on the debt level, interest rates, and new loans provided by the formal sector. The program tends to decreased debt level in the short run while increasing the probability of having formal debt.
A business networking programme on firm performance in China, and how groups composition and meeting frequency can facilitate trust and information flows. Results forthcoming.
Entrepreneurial activity is an important source of innovation in information technology products and services. Prior literature suggests that IT innovators should be agile, adaptive, willing to change direction frequently, and acquiring the necessary resources to facilitate the change. Social networks have been suggested as essential for acquiring information and resources and therefore in facilitating the venture development process.
This article studies technology adoption in a cluster of soccer-ball producers in Sialkot, Pakistan. We invented a new cutting technology that reduces waste of the primary raw material and gave the technology to a random subset of producers. Despite the clear net benefits for nearly all firms, after 15 months take-up remained puzzlingly low.
This study presents results from a randomized evaluation of two labor market interventions targeted to young women aged 18 to 19 years in three of Nairobi's poorest neighborhoods. One treatment offered participants a bundled intervention designed to simultaneously relieve credit and human capital constraints; a second treatment provided women with an unrestricted cash grant, but no training or other support.
In the context of rug-making in Egypt, the opportunity to export provides evidence that learning-by-exporting occurs, and can lead to production quality and cost improvements.
Accredited investors finance more than 75,000 U.S. startups annually. We explain how training aspiring entrepreneurs to pitch their new business ideas to these investors affects their odds of continued funding discussions. We model accredited investors’ decision to continue investigation as a real option whose value is a function of their experience and the information contained in the entrepreneurs’ pitches. We derive four hypotheses from the model, which we test through a field experiment that randomly assigns pitch training at four elevator pitch competitions.
Can improved access to credit jump-start microenterprise growth? We examine subjects in urban Hyderabad, India, six years after microfinance–an intervention commonly believed to lower the cost of credit and spark business creation–was randomly introduced to a subset of neighborhoods. We find large benefits both in business scale and performance from giving “gung-ho entrepreneurs” (GEs)–those who started a business before microfinance entered–more access to microfinance. Notably, these effects persist two years after microfinance was withdrawn from Hyderabad.
How do different sources of social influence impact the likelihood of entrepreneurship? We examine this question in the setting of an entrepreneurship class in which students were randomly assigned to receive mentorship from either an entrepreneur or a non-entrepreneur. Using a longitudinal field experiment with a pre-test/post-test design, we find that randomization to an entrepreneur mentor increases the likelihood of entrepreneurial careers, particularly for students whose parents were not entrepreneurs.
Standard business training programs aim to boost the incomes of the millions of self-employed business owners in developing countries by teaching basic financial and marketing practices, yet the impacts of such programs are mixed. We tested whether a psychology-based personal initiative training approach, which teaches a proactive mindset and focuses on entrepreneurial behaviors, could have more success.
In October 2014, all 4,494 undergraduates at the Massachusetts Institute of Technology were given access to Bitcoin, a decentralized digital currency. As a unique feature of the experiment, students who would generally adopt first were placed in a situation where many of their peers received access to the technology before them, and they then had to decide whether to continue to invest in this digital currency or exit. Our results suggest that when natural early adopters are delayed relative to their peers, they are more likely to reject the technology.
Field experiments have the potential to provide unambiguous causal evidence on innovation topics while simultaneously assisting organisations with their innovation.
This trial evaluates the impact of a business training for female clients of a microfinance institution in northern Vietnam, and considers the impact on business knowledge, practices, and outcomes, as well as firm entry and exit decisions.
In the context of online developer tournaments this study found that added rivalry is likely to induce higher performance given that failing to exert effort will reduce the likelihood of winning a prize. Tournament organizers can leverage contest size, dividing competitors by ability, and opening entry to all, as policy tools to manipulate the performance of competitors, particularly when changes allow the reallocation of prize money.
Women may face more constraints than men to becoming entrepreneurs, but are not poor entrepreneurs. A potentially important factor limiting financial inclusion efforts is inadequate peer support among many women who have potential as entrepreneurs.
All creativity and innovation build on existing ideas. Authors and inventors copy, adapt, improve, interpret, and refine the ideas that have come before them. The central task of intellectual property (IP) law is regulating this sequential innovation to ensure that initial creators and subsequent creators receive the appropriate sets of incentives. Although many scholars have applied the tools of economic analysis to consider whether IP law is successful in encouraging cumulative innovation, that work has rested on a set of untested assumptions about creators’ behavior.
I use a field experiment in rural Kenya to study how temporary incentives to save impact long run economic outcomes. Study participants randomly selected to receive large temporary interest rates on an individual bank account had significantly more income and assets 2.5 years after the interest rates expired. These changes are much larger than the short-run impacts on experimental bank account use and almost entirely driven by growth in entrepreneurship.
This natural field experiment tests the effects of purely symbolic awards on volunteer retention in a public goods context. The experiment is conducted at Wikipedia, which faces declining editor retention rates, particularly among newcomers. Randomization assures that award receipt is orthogonal to previous performance. The analysis reveals that awards have a sizeable effect on newcomer retention, which persists over the four quarters following the initial intervention.
In the context of a basic, short-term data entry job, unannounced provision of public recognition to employees yielded an economically significant increase in performance. Results suggest that recognition works best when it is provided exclusively, but not too exclusively. The performance increases in exclusive recognition are mainly driven by strong positive responses of non-recipients, which is most likely due to conformity preferences.
We use two sequential RCTs to study the impact of a twice-executed six-month intensive training program costing about 12,000 euros per participant to encourage social entrepreneurship among youth. The first year training effort provided no robust treatment effects. Results were used to redesign and improve the training. The second year effort provided treatment effects on venture actions, venture creation, one leadership characteristic, one non-cognitive skill, and on subsequent work experience in startups.
Self-control problems change the logic of agency theory by partly aligning the interests of the firm and worker: both now value contracts that elicit future effort. Findings from a year-long field experiment with full-time data entry workers support this idea. First, workers increase output by voluntarily choosing dominated contracts (which penalize low output but give no additional rewards for high output). Second, effort increases closer to (randomly assigned) paydays.
This RCT will pilot Self-Accelerated Startups (SAS), a new peer-selection based entrepreneurship support model for idea-stage companies and student startups that uses collective bootstrapping on the lines of self-help groups in the social sector. In this model, prospective entrepreneurs meet regularly in groups for a pre-defined mentorship period and make small monthly contributions to a “seed fund”. At the end of this phase, the self-mobilized corpus is awarded as startup capital to one or two members by the rest of the peer group in return for equity in these startups.
Many resources, such as business acumen are thought to feed into entrepreneurial success. However, an open question is whether the tools and frameworks available to nascent startups are causally related to their successes in the areas of financing, employment and revenue growth, valuations, etc. In this study, we use a large-scale RCT to assess the impact of entrepreneurship skills training on startup decisions and outcomes across the U.S. In the study, startups associated co-working spaces are offered payment to complete a series of surveys tracking their outcomes over two years.