Abstract
Resource acquisition is a crucial step in entrepreneurship. Audiences have a hard time evaluating early stage entrepreneurial projects because of their inherent ambiguity leading entrepreneurs to often resort to rhetorical strategies to help audiences make sense of them. From categorization literature, we identify category labels as a relevant technique entrepreneurs can use to help audiences make sense and reduce the ambiguity of their initiatives. Recombination of categories is a double-edged sword for entrepreneurial projects because it highlights a tension between generating confusion and arising curiosity. We hypothesize that the use of category labels is associated with more resource acquisition, and that the degree of category spanning is associated with more resource acquisition. We finally hypothesize an inverted U-shaped relationship between the creativity of category label recombination and the level of resource acquisition. We find support for our hypotheses using the descriptions of 26,967 crowdfunding projects presented on Indiegogo and Kickstarter from 2010 to 2017.
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