Which matters more? Group fear versus hope in entrepreneurial escalation of commitment

Research Summary We examine the influence of two conflicting emotions—group fear and group hope—in entrepreneurial team decision‐making. We are interested in which emotion will be more strongly related to whether entrepreneurial teams escalate their commitment to a currently failing venture versus terminating that venture. Using a longitudinal start‐up simulation and based on data from 66 teams across 569 decision‐making rounds, we find that...