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Unicorn companies, such as Facebook, Uber, and Airbnb, significantly impact our economies. This happens although they had a dramatic initial start – at least in terms of financial performance – that would have let any other “conventional” business close. In other words, Unicorns challenge the start-ups’ problems traditionally associated with early failure (liability of newness). This paper aims to understand what helps Unicorn firms initially survive despite huge losses.

By adopting a behavioral lens, this historical case study article focuses on key strategic decisions regarding the famous social media Unicorn Snapchat from 2011 to 2022. The case combines secondary data and a thematic analysis of Snapchat founders’ and investors’ interviews/comments to identify the behavioral antecedents leading to Snapchat’s honeymoon.

Snapchat network effect triggered cognitive biases of Snapchat founders’ and investors’ decisions, leading them to provide initial assets (i.e. beliefs/goodwill, trust, financial resources and psychological commitment) to the nascent Unicorn. Therefore, the network effect and biases resulted in significant antecedents for Snapchat’s honeymoon.

The authors propose a general, theoretical framework advancing the possible impact of biases on Unicorns’ initial survival. The authors argue that some biases of the Unicorns’ founders and investors can positively support a honeymoon period for these new ventures. This is one of the first case studies drawing on a behavioral approach in general and on biases in particular to investigate the liability of newness in the Unicorns’ context.

The ethics literature has focused on the influence of self-construal dimensions on unethical decision-making. However, the literature is unclear about why these self-construal dimensions (Independent-self, Relational-self, Collective-self) impact differently on unethical decision-making. Based on the theory of cooperation and competition, this study empirically examines the mediating role of competitive orientation and addresses the theoretically unexplained question of why self-construal dimensions influence differently on unethical decision-making.

Based on the deductive approach, a quantitative research study was conducted on the Sri Lankan banking industry because there have been many instances of unethical behavior reported in this sector lately. Data were collected from 305 bank branch managers using a structured survey questionnaire.

The findings revealed that competitive orientation mediates the self-construal dimensions and explained that competitive orientation is one reason why independent-self, relational-self and collective-self influence differently on unethical decision-making.

This paper addresses the unanswered question of why self-construal dimensions relate to unethical decision-making differently.