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.
- incentive design
- new venture participation
Monsen, E., Patzelt, H., & Saxton, T. (2010). Beyond simple utility: incentive design and trade-offs for corporate employee-entrepreneurs. Entrepreneurship Theory and Practice, 34(1), 105-130. https://doi.org/10.1111/j.1540-6520.2009.00314.x