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.
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.
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.
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.
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.
This paper focuses on the evaluation of frontier scientific research projects and argues that the intellectual distance between the knowledge embodied in research proposals and an evaluator's own expertise systematically relates to the evaluations given.
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.
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.
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.
Field experiments have the potential to provide unambiguous causal evidence on innovation topics while simultaneously assisting organisations with their innovation.
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.
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.
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.
The adoption of new clinical practice patterns by medical care providers is often challenging, even when they are believed to be both efficacious and profitable. This paper uses a randomized field experiment to examine the effects of temporary financial incentives paid to medical care clinics for the initiation of prenatal care in the first trimester of pregnancy. The rate of early initiation of prenatal care was 34% higher in the treatment group than in the control group while the incentives were being paid, and this effect persisted at least 24 months or more after the incentives ended.
Organizations that depend on voluntary contributions face unique managerial challenges. In this project, we examine whether emphasizing the salience of project output (i.e., project outcome) or project input (i.e., labor costs) affect the quantity and quality of contributions using a randomized field experiment on the world's largest crowd science platform. We manipulate whether participants receive information that emphasizes their contribution to the eventual outcome of a task or information that emphasizes their contribution to the labor required for a task.
In this meta-analysis what particularly stands out is the effect of microcredit on female empowerment. With respect to entrepreneurship and economic development outcomes, microcredit appears to have the most value in deprived contexts, but overall, results are highly dependent on context.
Will increased exposure to the principles of effectuation accelerate novice entrepreneurs’ development of entrepreneurial expertise? What kind of pedagogical tools and methods can provide that exposure and opportunities for deliberate practice? The principles of effectuation [www.effectuation.org], a set of heuristics underlying how expert entrepreneurs make decisions during new venture creation, are increasingly being used by entrepreneurship educators, consultants and practitioners.
Evaluation comparing the impact of a managerial consulting program with training on export business models in Córdoba, Argentina. Results forthcoming.
Why does growth stall in high-growth potential, second-stage companies, and can we intervene to overcome this? This research seeks to address why growth rates so often peter out in adolescent firms, and why so few make it to “grownup” status. The experimental trial will also seek to identify and test specific policy interventions to reinvigorate growth in these situations. The project will have three phases.
Small businesses that seek and obtain strategic business advice are more likely to thrive and grow. Advice can increase productivity, drive sales and improve the chance of survival in tough economic times. Yet as many as three in every ten small businesses in the UK may have an unmet need for business advice . And to date, available evidence does not establish a causal link between business advice and higher growth for small businesses.
With millions of women around the developing world thrown into self-employment but with low productivity, increasing the profitability of their businesses is highly relevant for poverty reduction and gender equity.
We conducted a field experiment to identify the causal effects of extrinsic incentive cues on the sorting and performance of nascent social entrepreneurs. The experiment, carried out with one of the United Kingdom’s largest support agencies for social entrepreneurs, encouraged 431 nascent social entrepreneurs to submit a full application for a grant competition that provides cash and in-kind mentorship support through a onetime mailing sent by the agency.
What is the impact of different types of knowledge transfer activities on the number and quality of business-science interactions? Motivated by the “European Paradox” (top-notch academic research but much weaker business-science links), this trial will test the impact of two interventions to raise awareness of academic research and connect it to businesses.
Crowdfunding is a recent and rapidly growing method of raising funds for early-stage companies. It minimises the cost and effort involved in raising start-up funds compared to traditional equity funding methods such as venture capital investment. Very little systematic, non-survey research has been conducted into these methods of funding new ventures, however. ‘The wisdom of crowds in equity crowdfunding’ aims to fill this gap.
Creajeunes offers support to young people from poorer neighbourhoods to get them involved in entrepreneurship. Results forthcoming.
Microentrepreneurs in developing countries face complex financial management challenges. Many entrepreneurs do not have the financial skills to address these challenges and traditional classroom-based financial training has not been shown effective in changing behavior or improving financial outcomes. What is the most effective way to equip microentrepreneurs with the necessary skills to address their financial management challenges? Traditional financial education curricula have shown very mixed results for improving knowledge and financial practices among microentrepreneurs.
A randomized trial was conducted in urban Ghana in which tailoring microenterprises received advice from an international consulting firm, cash, both, or neither.