Searching for Success- Entrepreneurs' Responses to Crowdfunding Failure

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Reference

Piening, E. P., Thies, F., Wessel, M., & Benlian, A. (2020). Searching for Success- Entrepreneurs' Responses to Crowdfunding Failure. Entrepreneurship Theory and Practice. (FT_2016 50_2016: yes; VHB_3: A)

Publication type

Article in Scientific Journal

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.

Research

Entrepreneurial Failure and the Search for Success
FFF-Förderprojekt, May 2020 until October 2021

Failure is an integral part of business life. Organizations are regularly confronted with various failure experiences that range from minor accidents, project failures, and performance problems in ... more ...

Persons

Organizational Units

  • Institute for Entrepreneurship
  • Chair of Entrepreneurship and Technology

Original Source URL

Link

DOI

http://dx.doi.org/https://doi.org/10.1177/1042258720980710