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Searching for Success—Entrepreneurs’ Responses to Crowdfunding Failure

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  • Erk P. Piening
  • Ferdinand Thies
  • Michael Wessel
  • Alexander Benlian

Abstract

In this study, we seek to provide new insights into the process of problemistic search by examining entrepreneurs’ behavioral responses to failures. Using a comprehensive dataset of over 65,000 crowdfunding projects, we specifically explore how negative performance feedback influences entrepreneurs’ search distance. Our results demonstrate that the severity and persistence of failure have a U-shaped and inverted U-shaped relationship with search distance, respectively. Moreover, greater temporal distance between an entrepreneur’s failure experience and a subsequent crowdfunding project is not only associated with increases in search distance, but also attenuates the curvilinear main effects.

Suggested Citation

  • Erk P. Piening & Ferdinand Thies & Michael Wessel & Alexander Benlian, 2021. "Searching for Success—Entrepreneurs’ Responses to Crowdfunding Failure," Entrepreneurship Theory and Practice, , vol. 45(3), pages 626-657, May.
    • Handle: RePEc:sae:entthe:v:45:y:2021:i:3:p:626-657
    DOI: 10.1177/1042258720980710
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