Near-lies in the era of advanced technology: Anticipation and uncertainty

Abstract

Recent technological advances have brought both anticipation and uncertainty. Entrepreneurs and external stakeholders in technology industries must distinguish between realistic and unrealistic prospects for new technologies. To address this issue, this study introduces the concept of near-lies defined as idealistic statements formally made by entrepreneurs, such as promises or predictions of a firm's future performance, that might exceed its capacity, potentially leading to future falsehoods. Near-lies differ from existing notions of corporate dishonesty because they are potential falsehoods or assume facts that are unknown at the moment, whereas existing notions represent exposed falsehoods. This concept offers practical implications in the era of advanced technology. To prevent dishonesty, entrepreneurs must engage in transparent communication when offering statements about their firm's future performance, prioritizing the long-term impression management toward external stakeholders. External stakeholders must rely on factual information to predict truths and effectively respond to entrepreneurs' near lies.