Feeding the hype cycle: Entrepreneurial swagger, passion, and inflated expectations

Abstract

Hype occurs when expectations exceed reality. For founders promoting innovative technologies, hype often attracts the resources necessary to grow a new venture. Hype is gaining prominence in entrepreneurship literature, and it is understood that many entrepreneurs jumpstart their ventures by promoting optimistic, future projections to entice stakeholders. Unfortunately, little is known about how skilled cultural founders generate hype to attract stakeholders. In our study, we examine how founders function as “skilled cultural operatives” to positively manipulate the emergence of hype. We conduct an experiment on 148 members of the media, and we find support for our theorizing in that founders who display their entrepreneurial abilities (swagger) combined with an authentic emotional commitment to the venture (passion), it increases media expectations (hype).

Executive summary

For the founders of innovative technologies, hype is not just beneficial, it is a strategic necessity. Hype is characterized by an overinflated interest in emerging technologies where future expectations outweigh current capabilities. It serves as a magnet for essential resources such as funding and customer interest. This dynamic, albeit critical, is often misunderstood and underestimated, in particular as regards the founder's role in its development. It is therefore of paramount importance to unravel the nuances of how founders contribute to the creation of hype.

This study explores founders as “skilled cultural operatives,” adept at using their cultural toolkit through sensegiving to inflate media expectations, thereby creating hype. Sensegiving in entrepreneurship involves a mix of verbal and non-verbal cues to communicate, clarify, and justify new technology. It is particularly important if there are no historical references or industry standards. The study posits that effective sensegiving through metaphorical reasoning, in which founders display their confidence and passion in a highly visible and expressive way, is key to generating media attention to generate hype.

In the present study, the concept of “swagger” emerged as a critical sensegiving mechanism. Defined as a conspicuous display of confidence through various expressions, swagger is a tool for founders to project their abilities and attract media coverage. However, this swagger, even if it attracts attention, may initially be perceived negatively, as a mere showmanship without substance. This research provides a nuanced understanding of this perception and shows that if swagger is infused with genuine passion, it transforms into a powerful catalyst for generating hype.

Conclusively, this study enriches the literature on hype cycles, moving beyond mere descriptions to a deeper understanding of how founders generate hype. By introducing and operationalizing the concept of entrepreneurial swagger, this study expands the range of sensegiving strategies available to founders. This study guides founders on how to effectively leverage swagger, demonstrating that when combined with passion, swagger can successfully generate hype and attract the necessary resources for innovative technologies.