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Too Red for Crowdfunding: The Legitimation and Adoption of Crowdfunding Across Political Cultures

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  • Alexander C. Lewis
  • Arkangel M. Cordero
  • Rachael Xiong

Abstract

Institutional change is typically studied at the organizational field level; we leverage political culture to examine how the context in which these fields are embedded influence processes of institutional change within such fields. Specifically, we look at the effect of conservative political culture on legitimation and adoption of crowdfunding in the United States. We find that crowdfunding is less popular and more slowly legitimated in conservative regions. However, we also find that crowdfunding’s legitimacy is more important in these regions and that once a legitimacy threshold is reached, the adoption of crowdfunding in conservative regions surpasses that in liberal regions.

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  • Alexander C. Lewis & Arkangel M. Cordero & Rachael Xiong, 2021. "Too Red for Crowdfunding: The Legitimation and Adoption of Crowdfunding Across Political Cultures," Entrepreneurship Theory and Practice, , vol. 45(3), pages 471-504, May.
    • Handle: RePEc:sae:entthe:v:45:y:2021:i:3:p:471-504
    DOI: 10.1177/1042258720915574
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    Cited by:

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    2. Lukas Maier & Christian V. Baccarella & Jörn H. Block & Timm F. Wagner & Kai-Ingo Voigt, 2023. "The Legitimization Effect of Crowdfunding Success: A Consumer Perspective," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1389-1420, July.
    3. Arkangel M. Cordero & Alexander C. Lewis, 2024. "How Does Regional Social Capital Structure the Relationship Between Entrepreneurship, Ethnic Diversity, and Residential Segregation?," Entrepreneurship Theory and Practice, , vol. 48(3), pages 788-825, May.
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    6. Chandler, Jeffrey A. & Anglin, Aaron H. & Kanwal, Fizza & Short, Jeremy C., 2024. "No politics in funding pitches: An expectancy violations theory perspective of entrepreneurs' political expressions in crowdfunding," Journal of Business Venturing, Elsevier, vol. 39(1).

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