Searching for Success—Entrepreneurs’ Responses to Crowdfunding Failure

Erk P. Piening, Ferdinand Thies, Michael Wessel and Alexander Benlian

Entrepreneurship Theory and Practice, 2021, vol. 45, issue 3, 626-657

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.

Keywords: failure; problemistic search; search distance; entrepreneurs; crowdfunding (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:45:y:2021:i:3:p:626-657

DOI: 10.1177/1042258720980710

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