INVESTIGATING DISHONESTY AND THE ROLE OF CONTROLE SYSTEMS IN ENTREPRENEURIAL VENTURES

Abstract

This experimental study examines cheating behaviors in the entrepreneurial context, specifically investigating the impact of control systems and sanctions. We compare the honesty levels of individuals with and without an entrepreneurial profile using an experimental design comprising nine distinct treatments. Participants engaged in a crossword-solving task under varying conditions of control (20% or 100%) and sanctions (low monetary, high monetary, or moral). Our findings indicate that entrepreneurs generally exhibit more honest behavior than non-entrepreneurs, although both groups demonstrated instances of “incomplete cheating”. Significantly, strong control and moral sanctions proved most effective in reducing dishonest conduct across all participants. This research highlights the importance of integrity within the entrepreneurial ecosystem and offers valuable insights for promoting ethical behavior through effective control and sanction mechanisms.