Mind Your Language Entrepreneur! Analysing Crowdfunding Success Through the Lens of Effectuation Theory

41 Pages Posted: 16 Dec 2020

See all articles by Nuno Arroteia

Nuno Arroteia

De Montfort University

Bibek Bhatta

Queen's University Belfast

Khalid Hafeez

De Montfort University

Martin Quinn

Queen's University Belfast - Queen's Management School

Date Written: December 15, 2020

Abstract

Crowdfunding has become an important source of funds for entrepreneurs. In this paper, we add a novel dimension to the literature examining how narrative styles affect the performance of such funding campaigns, by employing the lens of effectuation theory. Using data from a popular non-equity crowdfunding platform from 2009 to 2019 and examining the narratives of the campaigns through the lens of effectuation, we provide empirical evidence that entrepreneurial tendencies exhibited in crowdfunding campaigns’ narratives can affect the chances of success of such campaigns. More specifically, we show that narratives with higher effectual orientation exhibit higher chances of success in raising funds and this impact is more pronounced in commercial campaigns. We also show that campaigns having narratives with higher causal orientation tend to be more successful in raising the required funds, though the evidence is mixed.

Keywords: Crowdfunding, effectuation theory, content analysis

Suggested Citation

Arroteia, Nuno and Bhatta, Bibek and Hafeez, Khalid and Quinn, Martin, Mind Your Language Entrepreneur! Analysing Crowdfunding Success Through the Lens of Effectuation Theory (December 15, 2020). QMS Research Paper 14, Available at SSRN: https://ssrn.com/abstract=3749111 or http://dx.doi.org/10.2139/ssrn.3749111

Nuno Arroteia

De Montfort University ( email )

The Gateway
Leicester, LE1 9BH
United Kingdom

Bibek Bhatta (Contact Author)

Queen's University Belfast ( email )

25 University Square
Belfast, BT7 1NN
Ireland

Khalid Hafeez

De Montfort University ( email )

The Gateway
Leicester, LE1 9BH
United Kingdom

Martin Quinn

Queen's University Belfast - Queen's Management School ( email )

Riddel Hall
185 Stranmillis Road
Belfast, BT9 5EE
United Kingdom

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