Social License to Operate in Crowdfunding Campaigns

Abstract

Organizations and individuals need to engage their communities to gain the social license to operate (SLO). In crowdfunding, SLO is reflected in funding by the members of communities of interest around crowdfunding campaigns. Thus campaign creators’ success relies on obtaining SLO from their communities. This article examines how crowdfunding campaign creators engage their communities to gain and maintain SLO to secure funding for their campaigns. Content analysis of 68 successful and unsuccessful Kickstarter campaigns shows how successful campaign creators build their communities by the use of weak ties and have abundant relational and episodic engagement with their communities to obtain SLO. The results also show how successful campaign creators practice dialogic engagement to maintain their SLO over time. This study expands public relations to crowdfunding by framing crowdfunding as a community engagement practice and operationalizing SLO as tangible funding.