Fuqua School of Business
Institutional Affiliation: Duke University
NBER Working Papers and Publications
|September 2019||Experimentation and Startup Performance: Evidence from A/B testing|
with Rembrand Koning, Aaron Chatterji: w26278
Recent work argues that experimentation is the appropriate framework for entrepreneurial strategy. We investigate this proposition by exploiting the time-varying adoption of A/B testing technology, which has drastically reduced the cost of experimentally testing business ideas. This paper provides the first evidence of how digital experimentation affects the performance of a large sample of high-technology startups using data that tracks their growth, technology use, and product launches. We find that, despite its prominence in the business press, relatively few firms have adopted A/B testing. However, among those that do, we find increased performance on several critical dimensions, including page views and new product features. Furthermore, A/B testing is positively related to tail outco...
|July 2018||When Does Advice Impact Startup Performance?|
with Aaron Chatterji, Solène Delecourt, Rembrand M. Koning: w24789
Why do some entrepreneurs thrive while others fail? We explore whether the advice entrepreneurs receive about people management influences their firm's performance. We conducted a randomized field experiment in India with 100 high-growth technology firms whose founders received in-person advice from other entrepreneurs who varied in their managerial style. We find that entrepreneurs who received advice from peers with an active approach to managing people–instituting regular meetings, setting goals consistently, and providing frequent feedback to employees–grew 28% larger and were 10 percentage points less likely to fail than those who got advice from peers with a passive people-management approach two years after our intervention. Entrepreneurs with MBAs or accelerator experience did not ...
Published: Aaron Chatterji & Solène Delecourt & Sharique Hasan & Rembrand Koning, 2019. "When does advice impact startup performance?," Strategic Management Journal, vol 40(3), pages 331-356.