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The effects of brand prominence and narrative features on crowdfunding success for entrepreneurial aftermarket enterprises

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  • Moradi, Masoud
  • Badrinarayanan, Vishag

Abstract

This study examines how small, entrepreneurial enterprises can design crowdfunding projects for their aftermarket offerings. Drawing from signaling theory and the elaboration likelihood model, we investigate the direct and interactive effects of brand prominence (i.e., conspicuous display of a brand name in project titles and descriptions) and narrative features (i.e., language styles and narrative length) on funding success of crowdfunding projects by entrepreneurial aftermarket enterprises. Analysis of data from 343 crowdfunding projects shows the positive influence of brand prominence, language style, and narrative length on funding success. Findings also show that brand prominence increases the effects of language styles and narrative length on funding success. Based on these findings, we identify multiple theoretical contributions and directions for future research as well as practical recommendations for entrepreneurial aftermarket enterprises on designing crowdfunding projects.

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  • Moradi, Masoud & Badrinarayanan, Vishag, 2021. "The effects of brand prominence and narrative features on crowdfunding success for entrepreneurial aftermarket enterprises," Journal of Business Research, Elsevier, vol. 124(C), pages 286-298.
    • Handle: RePEc:eee:jbrese:v:124:y:2021:i:c:p:286-298
    DOI: 10.1016/j.jbusres.2020.12.002
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    3. Julian Bafera & Simon Kleinert, 2023. "Signaling Theory in Entrepreneurship Research: A Systematic Review and Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2419-2464, November.
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    5. Lenny Phulong Mamaro & Athenia Bongani Sibindi, 2022. "Financial Sustainability of African Small-to-Medium Enterprises during the COVID-19 Pandemic: Determinants of Crowdfunding Success," Sustainability, MDPI, vol. 14(23), pages 1-14, November.
    6. Jiao, Hao & Wang, Lindong & Yang, Jifeng, 2023. "Standing head and shoulders above others? Complementor experience-based design and crowdfunding success on digital platforms," Technovation, Elsevier, vol. 128(C).
    7. Lim, Weng Marc & Ahmed, Pervaiz Khalid & Ali, Md Yunus, 2022. "Giving electronic word of mouth (eWOM) as a prepurchase behavior: The case of online group buying," Journal of Business Research, Elsevier, vol. 146(C), pages 582-604.
    8. Ye Liu & Ke Zhang & Weili Xue & Ziyu Zhou, 2024. "Crowdfunding innovative but risky new ventures: the importance of less ambiguous tone," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-43, December.

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