The Einstellung effect, mental rigidity and decision-making in startup accelerators

Abstract

Purpose – This paper aims to investigate the decision-making on new ventures of eight directors or managers of Brazilian accelerators, aiming to understand if the Einstellung effect – mental rigidity – operates during the judgment of new ventures to accelerate. Design/methodology/approach – Through a quasi-experiment design, the study was conducted with directors or managers of Brazilian accelerators, who were separately interviewed and responded to a psychological test, previously consented, as well as to a simulated decision-making questionnaire. Findings – The selection process, with the criteria for decision-making, functions as a “template” for the recognition of potentially successful companies and is, indeed, subject to various cognitive biases, among which, the Einstellung effect, characteristic of mental rigidity. Research limitations/implications – The main contribution of the present study is to identify the cognitive mechanisms, which can negatively affect the evaluation of innovative projects and propose ways that can counteract or mitigate them. Originality/value – The psychological approach to decision-making, usually studied in chess game context or problem-solving, was applied to a relatively unexplored field that is startups to accelerate. Its originality remains at the interdisciplinary approach, combining knowledge from psychology, decision-making and entrepreneurship.

Keywords

• decision-making
• cognitive biases
• startups
• innovative projects
• einstellung effect
• mental rigidity