Crowdfunding-campaign success: The effect of entrepreneurial orientation and social media

Abstract

Using a capabilities view as a theoretical foundation, we examine the combinative role of entrepreneurial orientation (EO) and the strategic use of social media (SSM) on a firm’s success with crowdfunding endeavors (CFS). We proposed that EO may foster a firm’s ability to succeed in crowdfunding campaigns, and that this relationship is mediated by a firm’s strategic use of social media. To test these assertions, we surveyed professionals from 322 firms who have conducted crowdfunding campaigns. We created and validated our own 7-item scale for crowdfunding success whereas we used preexisting scales for EO and SSM to test our assertions. We found that EO alone cannot fully account for the success, but rather the manifestation of its effect derives from a firm’s strategic use of social media. These findings contribute to the literature on strategic entrepreneurship, innovation, media strategy, and public policy.