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“Pledge” me your ears! The role of narratives and narrator experience in explaining crowdfunding success

Author

Listed:
  • Francesco Cappa

    (LUISS Guido Carli University)

  • Michele Pinelli

    (Libera Università di Bolzano)

  • Riccardo Maiolini

    (John Cabot University)

  • Maria Isabella Leone

    (LUISS Guido Carli University)

Abstract

This study examines how the success of reward-based crowdfunding (RBCF) is affected by two narrative styles—namely “results in progress” (RIP) and “ongoing journey” (OJ)—and by the entrepreneur’s RBCF experience. Our findings reveal that greater success in collecting funds is achieved by RBCF campaigns that are communicated through RIP narrative styles rather than OJ styles. Moreover, we have underscored the positive effect brought about by an entrepreneur’s RBCF experience. In addition, we highlight how these two factors interact with each other in their overall effect on successful fundraising through RBFC, showing that entrepreneurs with extensive experience in RBCF attract more pledges by adopting OJ narratives rather than RIP narratives. The outcomes of this study advance the theoretical understanding of success factors in RBCF and provide RBCF entrepreneurs with suggestions regarding the most appropriate narrative style to adopt, depending on their level of experience.

Suggested Citation

  • Francesco Cappa & Michele Pinelli & Riccardo Maiolini & Maria Isabella Leone, 2021. "“Pledge” me your ears! The role of narratives and narrator experience in explaining crowdfunding success," Small Business Economics, Springer, vol. 57(2), pages 953-973, August.
    • Handle: RePEc:kap:sbusec:v:57:y:2021:i:2:d:10.1007_s11187-020-00334-y
    DOI: 10.1007/s11187-020-00334-y
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    Cited by:

    1. Maurer, Joshua D. & Creek, Steven A. & Allison, Thomas H. & Bendickson, Joshua S. & Sahaym, Arvin, 2023. "Affiliation rhetoric and digital orientation in crowdfunding appeals," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    2. Clarissa E. Weber & Norbert Steigenberger & Hendrik Wilhelm, 2023. "After successful fundraising: how overfunding and category spanning affect the release and audience-perceived quality of crowdfunded products," Small Business Economics, Springer, vol. 61(3), pages 1009-1026, October.
    3. Ciro D. Esposito & Balazs Szatmari & Jonathan M. C. Sitruk & Nachoem M. Wijnberg, 2024. "Getting off to a good start: emerging academic fields and early-stage equity financing," Small Business Economics, Springer, vol. 62(4), pages 1591-1613, April.
    4. David B. Audretsch & Erik E. Lehmann, 2023. "Narrative entrepreneurship: bringing (his)story back to entrepreneurship," Small Business Economics, Springer, vol. 60(4), pages 1593-1612, April.
    5. Cappa, Francesco & Collevecchio, Francesca & Oriani, Raffaele & Peruffo, Enzo, 2022. "Banks responding to the digital surge through Open Innovation: Stock market performance effects of M&As with fintech firms," Journal of Economics and Business, Elsevier, vol. 121(C).
    6. Ferrer, José María & Ulrich, Klaus & Blanco-González-Tejero, Cristina & Caño-Marín, Enrique, 2023. "Investors’ confidence in the crowdlending platform and the impact of Covid-19," Journal of Business Research, Elsevier, vol. 155(PA).
    7. Lingfei Deng & Qiang Ye & DaPeng Xu & Wenjun Sun & Guangxin Jiang, 2022. "A literature review and integrated framework for the determinants of crowdfunding success," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-70, December.

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    More about this item

    Keywords

    Crowdfunding; Narrative; Experience; Trust; Signaling theory; Entrepreneur; Fundraising;
    All these keywords.

    JEL classification:

    • D26 - Microeconomics - - Production and Organizations - - - Crowd-Based Firms
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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