Identifying the common biases and heuristics in nascent bio-entrepreneurs and their effect on the marketing performance of biotechnological ventures

Adam Butler
School of Sciences, Faculty of Science and Engineering, University of Wolverhampton, Wolverhampton WV1 1 LY, UK
Michael Bergin
Institute of Macromolecular Chemistry of Romanian Academy, 41 A, Gr. Ghica Voda Alley, 700487 Iasi, Romania

DOI:https://doi.org/10.5912/jcb2129

Abstract:

The paper investigates the effect of heuristics and common biases in entrepreneurs’ marketing performance of their biotechnological ventures. There is limited research on the impact of heuristics and biases in the field of entrepreneurship in the biotechnology industry. Therefore, the study addressed this research gap and adopted a quantitative methodology to highlight the effect of heuristics and biases: herding, overconfidence, anchoring, and loss aversion on marketing performance. Data was collected from nascent bio-entrepreneurs who were active in the U.S. biotech industry. A total sample of 243 respondents was analyzed through different statistical techniques. Confirmatory factor analysis was conducted, followed by structural equation modeling. Our study’s findings supported the proposed hypotheses, and it was concluded that common biases and heuristics significantly impact the marketing performance of biotech ventures. The study has significantly contributed to the existing literature on common heuristics and biases and provides suggestions for future research.