Abstract
Although a growing body of research highlights the potential impact of entrepreneurs’ displayed passion on investors’ funding decisions, little is known about the conditions under which that passion is most influential in the investment process. We used the Elaboration Likelihood Model of Persuasion (ELM) as a theoretical framework to explore how venture characteristics shape the relationship between entrepreneurs’ displayed passion and projects’ funding performance in crowdfunding. Using a combination of archival and experimental evidence from 228 crowdfunding projects and 1,090 participants, we found that entrepreneurs’ displayed passion positively influences funding performance for ventures at the early conception stage, but not for ventures at the later commercialization stage. In addition, the results of a three-way interaction between entrepreneurs’ displayed passion, venture stage, and project innovativeness revealed that passion exerts the strongest positive effect on ventures that are at the conception stage and proposing highly innovative projects.
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