Scientific decision-making, project selection and longer-term outcomes
Level 2 - randomized trial
Level 2 by design analogy (analysis of two randomized controlled trials in entrepreneurship).
OpenAlex W4396718609 · doi:10.1016/j.respol.2024.105022
What was done
Data were analyzed from two randomized controlled trials involving 382 entrepreneurs to evaluate the impact of training in scientific decision-making compared to a control group. The study assessed project valuation accuracy, timing of downward expectation adjustments, project termination dynamics, idea generation, and venture launch rates over up to five years.
What was found
The abstract reports directional findings without specific numerical values, percentages, or confidence intervals. Scientifically trained entrepreneurs were quicker to adjust expectations downward before terminating projects. While their initial termination rates were higher, this difference leveled out over five years, with control entrepreneurs eventually exhibiting higher termination rates. Scientific entrepreneurs generated a higher number of new ideas, and a higher proportion of their projects culminated in a venture launch.
Why it matters
This study shows that structured scientific decision-making helps founders terminate unviable projects earlier, freeing resources to develop new ideas and successfully launch ventures.
Limits
The abstract reports no numerical effect sizes, variance estimates, or p-values. Specific details regarding the training curriculum, control group conditions, participant attrition, and industry settings are not provided in the abstract.
Cited by
- supports In a study where businesses were randomized to different market research trainings, companies trained in the scientific method to test specific hypotheses pivoted more often and were significantly more likely to succeed and generate revenue.