Who responds to critical feedback? The effects of self-leadership on entrepreneurial product pivoting behavior

This paper draws on the self-leadership literature to explore who is more likely to respond to critical performance feedback in an early-stage entrepreneurial context. We perform a multi-round laboratory experiment in which participants brainstorm ideas for cricket-based food products, select their best idea, receive randomly generated feedback indicating that their idea is either above average (i.e., non-critical feedback) or below average (i.e., critical feedback), and then decide whether to stick with their original or pivot to a different idea. Results reveal that individuals low in behavioral awareness and constructive cognition, and those high in task motivation, are more likely to pivot to a new product in response to critical feedback. Given the central role responding to feedback plays in entrepreneurship (and in other contexts), these results shed needed light on the question of who is more likely to adapt in response to critical feedback and who is predisposed toward inaction.