Arbeitspapier

Trust, positive reciprocity, and negative reciprocity: Do these traits impact entrepreneurial dynamics?

Experimental evidence reveals that there is a strong willingness to trust and to act in both positively and negatively reciprocal ways. So far it is rarely analyzed whether these variables of social cognition influence everyday decision making behavior. We focus on entrepreneurs who are permanently facing exchange processes in the interplay with investors, sellers, and buyers, as well as needing to trust others and reciprocate with their network. We base our analysis on the German Socio-Economic Panel and recently introduced questions about trust, positive reciprocity, and negative reciprocity to examine the extent that these variables influence the entrepreneurial decision processes. More specifically, we analyze whether i) the willingness to trust other people influences the probability of starting a business; ii) trust, positive reciprocity, and negative reciprocity influence the exit probability of entrepreneurs; and iii) willingness to trust and to act reciprocally influences the probability of being an entrepreneur versus an employee or a manager. Our findings reveal that, in particular, trust impacts entrepreneurial development. Interestingly, entrepreneurs are more trustful than employees, but much less trustful than managers.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 5370

Klassifikation
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Labor Demand
New Firms; Startups
Entrepreneurship
Thema
entrepreneurship
trust
reciprocity

Ereignis
Geistige Schöpfung
(wer)
Caliendo, Marco
Fossen, Frank M.
Kritikos, Alexander S.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2010

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Caliendo, Marco
  • Fossen, Frank M.
  • Kritikos, Alexander S.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2010

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