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PRODID:-//HKUST Drupal Platform//EN
VERSION:2.0
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TZID:Asia/Hong_Kong
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DTSTART:20071104T020000
TZOFFSETFROM:+0700
TZOFFSETTO:+0800
TZNAME:HKT
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BEGIN:VEVENT
DTSTAMP;TZID=Asia/Hong_Kong:20260404T173142
DTSTART;TZID=Asia/Hong_Kong:20211110T160000
DTEND;TZID=Asia/Hong_Kong:20211110T171500
LOCATION:Zoom ID: 977 9032 8308 Passcode: ipe
SUMMARY:How do entrepreneurs respond to benchmarking information? To investigate this question causally, we carried out a randomized controlled trial among 194 entrepreneurs operating food stalls at 17 hawker centres across Singapore from September 2019 to January 2021. Both the control and treatment entrepreneurs were informed of their own performance. Additionally, treatment entrepreneurs were informed of benchmarking information---relative performance and best practices. We find that benchmarking affects entrepreneurs through selection and improvement. The selection effect shows that compared to control, treatment were more likely to exit if informed of low relative performance and were more likely to continue in business knowing relative performance to be high. On the intensive margin, benchmarking improved supply and financial management practices, both benchmarked and non-benchmarked. We interpret the results as due to entrepreneurs learning from benchmarking to sharpen self-evaluation of ability and resolve uncertainty over the profits associated with management practices. This interpretation is supported by heterogeneity analyses.
UID:29295
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