IMO MORSe Seminar: Murat Tarakci
Institute of Management and Organisation
Date: 12 February 2018 / 12:30 - 14:00
PC04
Join us for our next IMO MORSe seminar by Murat Tarakci from RSM Rotterdam on the 12th of February from 12:30-14:00 in PC04
Title: Do Entrepreneurs' Disruptive Visions Pay off? Evidence from Israeli Startups
Abstract: We investigate how framing entrepreneurial visions in a disruptive way affects investment acquisition. Disruptive framing involves promoting the potential to interrupt or displace an existing technology, service, or business model. While ubiquitous in business practice, disruptive framing has been neglected in impressions management research. Instead, prior research has focused on communications regarding previous and current accomplishments—which we coin achievement framing. Drawing from real options theory and impression management research, we hypothesize that disruptive framing increases the likelihood of getting funded due to expectations for extraordinary return, but attracts less amounts of funding. We test our hypotheses on a novel dataset of Israeli start-ups and a randomized online experiment. With this multi-method approach, we find empirical support for our hypotheses. These findings offer new insights on how entrepreneurs frame their innovations in the disruption process.
