Reinforcement process may underlie decisions frequently found in organizations to escalate investments of time, money and other resources in strategies (e.g., product development, capital investment, plant expansion) that do not result in immediate reinforces. Whereas cognitive biases have been proffered in previous explanations, the present analysis suggested that this persistence is a form of resistance to extinction arising from experiences with past investments that were variably reinforced. This explanation was examined in two experiments by varying the pattern of returns and losses subjects experienced for investment decisions prior to experiencing a series losses. Consistent with the proposed explanation, two conditions resulted in higher levels of recommitment during continuous losses: (a) training using a variable schedule of partial reinforcement, and (b) no training on the task. Results indicate that behavior analysis can be used to understand and control situations in organizations that are prone to escalation, such as investments in the research and development of new product lines and extensions of further loans to customers.
Purpose
– Research and theory indicate that macro-level variables can influence the effects of individual-level factors on the economic behavior of women; however, this has rarely been examined with regard to women
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s entrepreneurship. Entrepreneurship has thus far been examined from a gender-neutral perspective. The purpose of this paper is to address this gap by deriving predictions using a sociological model of gender stratification and examining the effects of gendered institutions on women
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s entrepreneurship.
Design/methodology/approach
– Using the Global Entrepreneurship Monitor (GEM) dataset comprising over 40,000 individuals across 30 countries combined with data from the Global Gender Gap Index (GGGI), the authors examined the direct as well as cross-level moderation effects of gendered institutions on the probability of women entering into entrepreneurship.
Findings
– Results indicated that gendered institutions moderate effects of individual variables on the entrepreneurship of women, suggesting that in theory and research, individual factors affecting women
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s entrepreneurship should be considered within the larger cultural context.
Research limitations/implications
– The findings provide additional evidence for the gender stratification theory of women
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s economic activity. Future research should examine alternative operationalizations of the variables, as well as effects of additional gendered institutions.
Practical implications
– Results suggest that changes may be needed in entrepreneurship development policies in countries with cultural values creating barriers for women
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s entrepreneurship.
Originality/value
– This multi-level analysis is derived from a theoretical framework and helps account for the rates of entrepreneurial activity found among women across many countries.
The present study examined the combined effects of responsibility and reinforcement history on investment responses during a series of failure experiences. Subjects performed a variation of the A&S decision case [27] under one of six conditions varying in responsibility (high, low) and reinforcement history (variable partial, fixed partial, no training). When investment responses at the start of the period of continuous losses were examined, results indicated that high responsibility and a variable history of reinforcement ate both necessary conditions for escalation to occur. When later responses were included in the analysis, reinforcement history and time were the main factors affecting recommitment responses. These results suggest possible refinements to current models of escalation.
Women's political leadership may contribute to women's entrepreneurship by removing existing constraints on the economic behavior of women, assuming these changes are then enforced. We examine the association of women's political power and a country's rule of law with women's entrepreneurial entry, using the Global Entrepreneurship Monitor dataset combined with other indicators. Both variables are positively associated with women's entry into entrepreneurship, and the association between political empowerment. Entry into entrepreneurship is moderated by rule of law, with higher levels of women's political power having greater effects in countries with higher levels of rule of law. Implications are discussed.
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