Entrepreneurship & Innovation

In this commentary, we reflect on several important issues and questions provoked by Murphy and Dweck's target article. First, we define a mindset as a frame of mind that affects the selection, encoding, and retrieval of information as well as the types of evaluations and responses an individual gives. As such, we suggest that while studying fixed versus growth mindsets is important, it is critical to explore and understand how a variety of mindsets affect consumer behavior, including regulatory focus, construal level, implementation versus deliberation, and power.

Three high-power studies (N = 3,000 total) demonstrated that asking participants to recall an experience as a manipulation can have unintended consequences. Participants who recalled preoccupying secrets made more extreme judgments of an external environment, supporting the notion that secrecy is burdensome. This influence was found, however, only among a subset of participants (i.e., participants who successfully recalled secrets that corresponded to their condition). We introduce the concept of manipulation correspondence to understand these patterns of results.

Norm violations engender both negative reactions and perceptions of power from observers. We addressed this paradox by examining whether observers' tendency to grant power to norm followers versus norm violators is moderated by the observer's position in the hierarchy. Because norm violations threaten the status quo, we hypothesized that individuals higher in a hierarchy (high verticality) would be less likely to grant power to norm violators compared to individuals lower in the hierarchy (low verticality).

Does making the first offer increase or impair a negotiator's outcomes? Past research has found evidence supporting both claims. To reconcile these contradictory findings, we developed and tested an integrative model — the Information-Anchoring Model of First Offers. The model predicts when and why making the first offer helps versus hurts. We suggest that first offers have 2 effects. First, they serve as anchors that pull final settlements toward the initial first-offer value; this anchor function often produces a first-mover advantage.

We show that venture capitalists' (VCs) on-site involvement with their portfolio companies leads to an increase in (1) innovation and (2) the likelihood of a successful exit. We rule out selection effects by exploiting an exogenous source of variation in VC involvement: the introduction of new airline routes that reduce VCs' travel times to their existing portfolio companies.

Perspective taking is a crucial leadership skill, yet Galinsky and Schweitzer contend that it becomes more difficult the higher you rise in an organization. Gaining perspective helps to motivate others, communicate more clearly, and navigate difficult or tense situations. Their article includes research they conducted with psychologists at the University of Iowa, the University of California-Los Angeles, and New York University, as well as an anecdote about President John F. Kennedy and the 1962 Cuban missile crisis.