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User entrepreneurs' multiple identities and crowdfunding performance: Effects through product innovativeness, perceived passion, and need similarity

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  • Oo, Pyayt P.
  • Allison, Thomas H.
  • Sahaym, Arvin
  • Juasrikul, Sakdipon

Abstract

This study examines the performance of user entrepreneurs in acquiring financial resources via crowdfunding. User entrepreneurs are thought to have better performance than non-user entrepreneurs, but the theoretical underpinnings of these differences are unclear. We propose a baseline hypothesis that claims of user entrepreneurship serve as a signal of capability and commitment to potential backers. In addition, building on three distinct identities of user entrepreneurs, we argue that user entrepreneurs' perceived passion, product innovativeness, and need similarity with potential backers mediate the relationship between user entrepreneurship and crowdfunding performance. Our results from a field study using a sample of crowdfunded ventures support these assertions. We validate these results and measures using both survey and experimental methods. This is one of the first studies to develop a multi-theoretical framework for user entrepreneurship, and the first to provide an underlying theoretical explanation for the superior crowdfunding performance of user entrepreneurs.

Suggested Citation

  • Oo, Pyayt P. & Allison, Thomas H. & Sahaym, Arvin & Juasrikul, Sakdipon, 2019. "User entrepreneurs' multiple identities and crowdfunding performance: Effects through product innovativeness, perceived passion, and need similarity," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    • Handle: RePEc:eee:jbvent:v:34:y:2019:i:5:2
    DOI: 10.1016/j.jbusvent.2018.08.005
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    Cited by:

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    4. Su, Linlin & Cheng, Xusen & Hua, Ying & Zhang, Wenping, 2021. "What leads to value co-creation in reward-based crowdfunding? A person-environment fit perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    5. Jana Möller & Steffen Herm, 2021. "Perceptions of Green User Entrepreneurs’ Performance—Is Sustainability an Asset or a Liability for Innovators?," Sustainability, MDPI, vol. 13(6), pages 1-12, March.
    6. Warnick, Benjamin J. & Davis, Blakley C. & Allison, Thomas H. & Anglin, Aaron H., 2021. "Express yourself: Facial expression of happiness, anger, fear, and sadness in funding pitches," Journal of Business Venturing, Elsevier, vol. 36(4).
    7. Julia Neuhaus & Andrew Isaak & Denefa Bostandzic, 2022. "Million dollar personality: a systematic literature review on personality in crowdfunding," Management Review Quarterly, Springer, vol. 72(2), pages 309-345, June.
    8. Williamson, Amanda Jasmine & Battisti, Martina & Pollack, Jeffrey M., 2022. "Capturing passion expressed in text with artificial intelligence (AI): Affective passion waned, and identity centrality was sustained in social ventures," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    9. Geiger, Mark, 2020. "A meta-analysis of the gender gap(s) in venture funding: Funder- and entrepreneur-driven perspectives," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    10. Eriko Naiki & Yuta Ogane, 2022. "Human capital effects on fundraising for necessity- and opportunity-based entrepreneurs," Small Business Economics, Springer, vol. 59(2), pages 721-741, August.
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    13. Kincaid, Paula A. & Short, Jeremy C. & Wolfe, Marcus T., 2022. "Got ink, get paid? Exploring the impact of tattoo visibility on crowdfunding performance," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    14. Allison, Thomas H. & Warnick, Benjamin J. & Davis, Blakley C. & Cardon, Melissa S., 2022. "Can you hear me now? Engendering passion and preparedness perceptions with vocal expressions in crowdfunding pitches," Journal of Business Venturing, Elsevier, vol. 37(3).
    15. Lin, Tse-Chun & Pursiainen, Vesa, 2022. "Regional social capital and moral hazard in crowdfunding," Journal of Business Venturing, Elsevier, vol. 37(4).
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    17. Schwarte, Ying & Song, Yue & Hunt, Richard A. & Lohrke, Franz T., 2023. "Passion as process: Three perspectives on entrepreneurial passion and an integrated path forward," Journal of Business Research, Elsevier, vol. 156(C).
    18. Felipe, Israel José dos Santos & Mendes-Da-Silva, Wesley & Leal, Cristiana Cerqueira & Braun Santos, Danilo, 2022. "Reward crowdfunding campaigns: Time-to-success analysis," Journal of Business Research, Elsevier, vol. 138(C), pages 214-228.
    19. Oo, Pyayt P. & Jiang, Lin & Sahaym, Arvin & Parhankangas, Annaleena & Chan, Richard, 2023. "Actions in words: How entrepreneurs use diversified and changing speech acts to achieve funding success," Journal of Business Venturing, Elsevier, vol. 38(2).
    20. Oo, Pyayt P. & Creek, Steven A. & Sheppard, Leah D., 2022. "Perceived warmth and competence in crowdfunding: Which matters more and for whom?," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    21. 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.
    22. Chan, C.S. Richard & Pethe, Charuta & Skiena, Steven, 2021. "Natural language processing versus rule-based text analysis: Comparing BERT score and readability indices to predict crowdfunding outcomes," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    23. Cai, Wanxiang & Polzin, Friedemann & Stam, Erik, 2021. "Crowdfunding and social capital: A systematic review using a dynamic perspective," Technological Forecasting and Social Change, Elsevier, vol. 162(C).

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