Beyond simple utility: incentive design and trade-offs for corporate employee-entrepreneurs

Erik Monsen, H. Patzelt, T. Saxton

Research output: Contribution to journalArticle

63 Citations (Scopus)

Abstract

To strengthen the theoretical foundations of incentive system design for corporate entrepreneurship, we develop a moderated model of new venture participation, integrating financial, risk, and effort factors to more comprehensively understand the limits of economic utility maximization theory. We make explicit the trade-offs and opportunity costs for corporate employee-entrepreneurs. We use a conjoint field experiment to collect data on 1952 decisions made by 61 corporate employees to test how risk and effort moderate an employee’s decision to participate in a new corporate venture. We find that these factors do interact to affect the choice to engage in corporate entrepreneurship projects.
Original languageEnglish
Pages (from-to)105-130
Number of pages26
JournalEntrepreneurship Theory and Practice
Volume34
Issue number1
Early online date15 Apr 2009
DOIs
Publication statusPublished - Jan 2010

Keywords

  • incentive design
  • entrepreneurship
  • new venture participation

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