THE ROLE OF MANAGERIAL EXPERIENCE IN ENTRY/ STAY DECISION IN SITUATIONS OF GEOPOLITICAL TENSION

Last registered on February 02, 2024
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Pre-Trial

Trial Information

General Information

Title
THE ROLE OF MANAGERIAL EXPERIENCE IN ENTRY/ STAY DECISION IN SITUATIONS OF GEOPOLITICAL TENSION
RCT ID
AEARCTR-0012929
Initial registration date
February 01, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
February 02, 2024, 4:28 PM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

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Primary Investigator

Name
Orsola Garofalo
Affiliation
Copenhagen Business School
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Other Primary Investigator(s)

PI Name
Grazia Santangelo
PI Affiliation
Copenhagen Business School
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PI Name
Klaus Meyer
PI Affiliation
IVEY Business School
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Additional Trial Information

Status
In development
Start date
2024-02-19
End date
2025-02-28
Keywords
Behavior
Additional Keywords
Entry/Exit; Geopolitics
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
IB theory suggests that international experience influences individual expectations, risk perception and, thus, their decisions. The experience effect has informed the following predictions: a)"Managers with more internationalization experience will show less risk aversion than managers with less internationalization experience"; b) "Managers with more internationalization experience will use more calculative approaches than managers with less internationalization experience". However, in their decision-making process, individuals confront positive (gain) and negative (loss) frames of the specific situations upon which they have to decide. Thus, we explore the following research questions: 1) Does (and how) the framing of the decision problem alters the effect of experience on internationalization-related decisions? 2) Does additional information provision influence how framing alters the experience effect?
External Link(s)

Registration Citation

Citation
Garofalo, Orsola , Klaus Meyer and Grazia Santangelo. 2024. "THE ROLE OF MANAGERIAL EXPERIENCE IN ENTRY/ STAY DECISION IN SITUATIONS OF GEOPOLITICAL TENSION." AEA RCT Registry. February 02. https://doi.org/10.1257/rct.12929-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Individuals receive negative or positive framed information regarding a situation in a foreign country where they operate.
Intervention Start Date
2024-02-19
Intervention End Date
2024-03-19

Primary Outcomes

Primary Outcomes (end points)
Decision to "stay or exit" from a foreign contry
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
In STEP 1: Participants are randomly allocated to either of 2 scenarios
• Scenario 1 tests whether a positive (gain) frame compensates for the lack of individual international experience.
• Scenario 2 tests whether a negative (loss) frame reinforces the lack of individual international experience.

In STEP 2: Participants are allocated based on their answer to step one (STAY or EXIT) within the type of framing (positive and negative) they have been exposed to in STEP 1. A follow-up question providing additional information elicits their propensity to reconsider their original decision depending on whether managers face different types of pressures.
Experimental Design Details
Not available
Randomization Method
The randomization will be done through Qualtrics
Randomization Unit
Individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
We dont have clusters
Sample size: planned number of observations
Up to 300 individuals
Sample size (or number of clusters) by treatment arms
We dont have clusters. We will have up to 150 participants in the control and up to 150 participants in the treatment
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials

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IRB

Institutional Review Boards (IRBs)

IRB Name
Copenhagen Business School
IRB Approval Date
2023-10-27
IRB Approval Number
N/A
Analysis Plan