Activist Choice Homophily and the Crowdfunding of Female Founders

Administrative Science Quarterly, Forthcoming

65 Pages Posted: 6 Jul 2014 Last revised: 23 Nov 2016

Jason Greenberg

New York University (NYU) - Leonard N. Stern School of Business

Ethan R. Mollick

University of Pennsylvania - Wharton School

Date Written: October 1, 2016

Abstract

In this paper, we examine when members of underrepresented groups choose to support each other, using the context of the funding of female founders via donation-based crowdfunding. Building on theories of choice homophily, we develop the concept of activist choice homophily, in which the basis of attraction between two individuals is not merely similarity between them, but rather perceptions of shared structural barriers stemming from a common social identity based on group membership. We differentiate activist choice homophily from homophily based on the similarity between individuals (“individual choice homophily”), as well as from “induced homophily,” which reflects the likelihood that those in a particular social category will affiliate and form networks. Using lab experiments and field data, we show that activist choice homophily provides an explanation for why women are more likely to succeed at crowdfunding than men and why women are most successful in industries in which they are least represented.

Keywords: startups, crowdfunding, gender, enterpreneurial finance

Suggested Citation

Greenberg, Jason and Mollick, Ethan R., Activist Choice Homophily and the Crowdfunding of Female Founders (October 1, 2016). Administrative Science Quarterly, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2462254

Jason Greenberg

New York University (NYU) - Leonard N. Stern School of Business ( email )

40 West 4th Street, Suite 706
New York, NY NY 10012
United States
212-998-0229 (Phone)

Ethan R. Mollick (Contact Author)

University of Pennsylvania - Wharton School ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States

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