Crowdfunding success through social media: Going beyond entrepreneurial orientation in the context of small and medium-sized enterprises

Abstract

This study examines how entrepreneurial orientation (EO) works through firm managers’ perceived contribution of social media (CSM) and influences crowdfunding success in the context of pre-existing Small and Medium-sized Enterprises (SMEs). As a construct, EO has evolved over the last three decades. We build on recent conceptualizations where it is posited as a behavioral construct that motivates directed actions. We propose that EO fosters actions and routines that predict crowdfunding campaign success, and that this relationship is mediated by the perceived contribution of social media to a firm's campaign success. To test these assertions, we surveyed professionals from 322 firms who had conducted crowdfunding campaigns. We created and validated our own 7-item scale for crowdfunding success where we used pre-existing scales for EO and CSM to test our assertions. We found that the CSM mediates the relationship between EO and crowdfunding success (CFS). These findings contribute to the literature on strategic entrepreneurship, innovation, and media strategy.