TY - JOUR
T1 - Actions Speak Louder than Words: How Figurative Language and Gesturing in Entrepreneurial Pitches Influences Investment Judgments
AU - Healey, Mark
AU - Clarke, Jean
AU - Cornelissen, Joep
PY - 2018/7/3
Y1 - 2018/7/3
N2 - A key challenge for entrepreneurs is to convince investors of their business ideas in a pitch. Although scholars have started to explore how entrepreneurs convey their passion and preparedness in a pitch, they have overlooked the possible variation that exists in the verbal and nonverbal expressions of entrepreneurs. We build on research in cognitive science and entrepreneurship to examine the nature and influence of specific forms of speech and gesturing used by entrepreneurs when pitching. In an initial qualitative field study we identify distinct pitching strategies entrepreneurs use, involving different combinations of verbal tactics (using literal and figurative language to frame a venture) and gesture (using different types of hand gestures to emphasize parts of their pitch and convey product and venture ideas). In an experimental study with samples of investors and students, we examine the impact of these strategies on the propensity to invest. We found that although variation in the type of language entrepreneurs used had limited effects, using gestures to depict and symbolize business ideas had strong positive effects. Our findings indicate that the skilled use of gestures by entrepreneurs helps potential investors imagine aspects of a new venture for themselves, enhancing perception of its investment potential.
AB - A key challenge for entrepreneurs is to convince investors of their business ideas in a pitch. Although scholars have started to explore how entrepreneurs convey their passion and preparedness in a pitch, they have overlooked the possible variation that exists in the verbal and nonverbal expressions of entrepreneurs. We build on research in cognitive science and entrepreneurship to examine the nature and influence of specific forms of speech and gesturing used by entrepreneurs when pitching. In an initial qualitative field study we identify distinct pitching strategies entrepreneurs use, involving different combinations of verbal tactics (using literal and figurative language to frame a venture) and gesture (using different types of hand gestures to emphasize parts of their pitch and convey product and venture ideas). In an experimental study with samples of investors and students, we examine the impact of these strategies on the propensity to invest. We found that although variation in the type of language entrepreneurs used had limited effects, using gestures to depict and symbolize business ideas had strong positive effects. Our findings indicate that the skilled use of gestures by entrepreneurs helps potential investors imagine aspects of a new venture for themselves, enhancing perception of its investment potential.
U2 - 10.5465/amj.2016.1008
DO - 10.5465/amj.2016.1008
M3 - Article
SN - 0001-4273
VL - 62
SP - 335
EP - 360
JO - Academy of Management Journal
JF - Academy of Management Journal
IS - 2
ER -