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The Role of Community in Crowdfunding Success: Evidence on Cultural Attributes in Funding Campaigns to “Save the Local Theaterâ€

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  • Matthew Josefy
  • Thomas J. Dean
  • Lumina S. Albert
  • Markus A. Fitza

Abstract

Despite increased interest in examining the factors that influence crowdfunding success, the effects of community context have been relatively unexamined. We address this void by examining the role of cultural context in crowdfunding success. Our unique data set of crowdfunding projects to “save the local theater†are homogenous in their goal, allowing us to test whether crowdfunding campaigns in certain communities lead to better funding outcomes than others. Theoretically, our results suggest the need for further integration of community and cultural constructs into models of venture funding, as such variables may have more relevance than previously believed.

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  • Matthew Josefy & Thomas J. Dean & Lumina S. Albert & Markus A. Fitza, 2017. "The Role of Community in Crowdfunding Success: Evidence on Cultural Attributes in Funding Campaigns to “Save the Local Theaterâ€," Entrepreneurship Theory and Practice, , vol. 41(2), pages 161-182, March.
    • Handle: RePEc:sae:entthe:v:41:y:2017:i:2:p:161-182
    DOI: 10.1111/etap.12263
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    6. Boudreau, Kevin J. & Jeppesen, Lars Bo & Reichstein, Toke & Rullani, Francesco, 2021. "Crowdfunding as Donations to Entrepreneurial Firms," Research Policy, Elsevier, vol. 50(7).
    7. Wang, Yinghuan & Wang, Baolin & Yan, Yan, 2022. "Does network externality affect your project? Evidences from reward-based technology crowdfunding," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    8. Ren, Jie & Raghupathi, Viju & Raghupathi, Wullianallur, 2021. "Exploring the Factors that Determine the Success of Litigation Crowdfunding: Implications for Social Justice," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    9. Bacq, Sophie & Hertel, Christina & Lumpkin, G.T., 2022. "Communities at the nexus of entrepreneurship and societal impact: A cross-disciplinary literature review," Journal of Business Venturing, Elsevier, vol. 37(5).
    10. Rama, Ali & Jiang, Chunxia & Johan, Sofia & Liu, Hong & Mai, Yong, 2022. "Religious and social narratives and crowdfunding success," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).
    11. Maurer, Joshua D. & Creek, Steven A. & Allison, Thomas H. & Bendickson, Joshua S. & Sahaym, Arvin, 2024. "Getting to know someone in ten seconds: Social role theory and perceived personality in entrepreneurial pitch videos," Journal of Business Research, Elsevier, vol. 174(C).
    12. 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.
    13. De Crescenzo, Veronica & Ribeiro-Soriano, Domingo Enrique & Covin, Jeffrey G., 2020. "Exploring the viability of equity crowdfunding as a fundraising instrument: A configurational analysis of contingency factors that lead to crowdfunding success and failure," Journal of Business Research, Elsevier, vol. 115(C), pages 348-356.
    14. Uparna, Jayaram & Bingham, Chris, 2022. "Breaking “Bad”: Negativity’s benefit for entrepreneurial funding," Journal of Business Research, Elsevier, vol. 139(C), pages 1353-1365.
    15. Fisher, Greg & Josefy, Matthew A. & Neubert, Emily, 2024. "Event-based entrepreneurship," Journal of Business Venturing, Elsevier, vol. 39(1).
    16. Filippo Marchesani & Francesca Masciarelli, 2022. "Crowdfunding as Entrepreneurial Investment: The Role of Local Knowledge Spillover," Papers 2211.16984, arXiv.org.
    17. Tajvarpour, Mohammad Hossein & Pujari, Devashish, 2022. "The influence of narrative description on the success of crowdfunding campaigns: The moderating role of quality signals," Journal of Business Research, Elsevier, vol. 149(C), pages 123-138.
    18. 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).
    19. Hertel, Christina & Binder, Julia & Fauchart, Emmanuelle, 2021. "Getting more from many—A framework of community resourcefulness in new venture creation," Journal of Business Venturing, Elsevier, vol. 36(3).
    20. Li, Liangqiang & Yang, Liang & Zhao, Meng & Liao, Miyan & Cao, Yunzhong, 2022. "Exploring the success determinants of crowdfunding for cultural and creative projects: An empirical study based on signal theory," Technology in Society, Elsevier, vol. 70(C).
    21. Liu, Aiping & Urquía-Grande, Elena & López-Sánchez, Pilar & Rodríguez-López, Ángel, 2023. "Research into microfinance and ICTs: A bibliometric analysis," Evaluation and Program Planning, Elsevier, vol. 97(C).
    22. Anglin, Aaron H. & Pidduck, Robert J., 2022. "Choose your words carefully: Harnessing the language of crowdfunding for success," Business Horizons, Elsevier, vol. 65(1), pages 43-58.
    23. Megan Yuan Li & Charson Cancan Dong & Shige Makino, 2023. "Does a Past Category’s Success Influence Existing Entrepreneurial Fundraising?: A Legitimacy Spillover Perspective," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2263-2292, November.

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