Environmental Sustainability Orientation, Reward-Based Crowdfunding, and Venture Capital: The Mediating Role of Crowdfunding Performance for New Technology Ventures

Roma, Paolo; Vasi, Maria; Testa, Stefania; Perrone, Giovanni

doi:10.1109/tem.2021.3080428

Cited by 15 publications

(10 citation statements)

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“…, 2016a; Migendt et al. , 2017; Hörisch and Tenner, 2020; Roma et al. , 2021), Cleantechs still struggle to access the available funds (Owen et al.…”

Section: Discussion and Future Researchmentioning

confidence: 99%

“…Regarding the latter, van Werven et al (2019, p. 194) contend that a venture's story needs to be plausible and resonant, and de Villiers Scheepers et al (2021) add that a tangible and for the investors personally relevant story is important for "talking" a new venture into existence. In the context of Cleantechs, some works also suggest that investors value green orientation and the ventures can thus benefit from specifically mentioning their environmental impact in their pitch (Roma et al, 2021;H€ orisch and Tenner, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Discussion and future research The paper's goal was to understand why IAs and the funding gap are so persistent for Cleantechs. Although the literature shows that early-stage development of a hybrid Cleantech investing logic has begun and the necessary funding options and communication benefits for early-stage Cleantechs are available (Polzin and Sanders, 2020;Cumming et al, 2016a;Migendt et al, 2017;H€ orisch and Tenner, 2020;Roma et al, 2021), Cleantechs still struggle to access the available funds (Owen et al, 2020).…”

Section: Dynamic Actor Roles In Developing the Cleantech Financing Ec...mentioning

confidence: 99%

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Reducing early-stage Cleantech funding gaps: an exploration of the role of Environmental Performance Indicators

Harrer

Owen²

2022

IJEBR

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PurposeThe purpose of this paper is to explore why, despite the development of a hybrid investing logic, funding problems are so persistent for early-stage Cleantech ventures (“Cleantechs”). An institutional logics lens is adopted to analyze how key actors' perceptions and communications of the Cleantech value proposition shape information asymmetries (IAs).Design/methodology/approachA mixed methods approach draws on 82 Cleantech pitch decks and 31 investment guidance documents, and insights from interviews with 42 key informants and nine Cleantech CEOs and their investors.FindingsIAs persist, first of all, because key investor and entrepreneurial actors combine different goals in the hybrid Cleantech value proposition. Interestingly, the analysis of Environmental Performance Indicators (EPIs) as a critical communication tool reveals a further mismatch in how actors actually combine logics. The authors ultimately identify three emergent actor roles – traditional laggard, developer and boundary spanner – that present a framework of how the three most influential actor groups develop EPIs and via that a hybrid Cleantech financing logic to overcome IAs.Originality/valueThe paper enhances the entrepreneurial finance literature primarily by showing that in contexts of hybrid investing a more nuanced understanding of institutional logics in terms of ends and means is critical to overcome IAs. While prior works highlight goal incompatibilities, the findings here suggest that the (in-)compatibility of goals as well as EPI choices of the same actors is likely to be the key explanandum for the stickiness of IAs and the funding gap. The novel emerging role framework offers additional theoretical, policy and practical advances for hybrid logic development.

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“…, 2016a; Migendt et al. , 2017; Hörisch and Tenner, 2020; Roma et al. , 2021), Cleantechs still struggle to access the available funds (Owen et al.…”

Section: Discussion and Future Researchmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Dynamic Actor Roles In Developing the Cleantech Financing Ec...mentioning

confidence: 99%

See 1 more Smart Citation

Reducing early-stage Cleantech funding gaps: an exploration of the role of Environmental Performance Indicators

Harrer

Owen²

2022

IJEBR

View full text Add to dashboard Cite

show abstract

“…This information should be particularly valuable to consumers active at the commercialization stage because of the nature of reward‐based CF. In fact, in reward‐based CF, the reward scheme offered to investors typically includes the product that the project proponent intends to commercialize, and people contribute to the campaign mostly out of a desire to obtain this specific reward (Chakraborty & Swinney, 2021; Lin et al, 2022; Roma et al, 2017; Roma, Vasi, Testa, & Perrone, 2021b; Strausz, 2017). Consequently, investors in reward‐based CF are essentially early adopters who invest money in advance in order to “buy” a product yet to be developed (Chan & Parhankangas, 2017; Kickstarter, 2020; Roma et al, 2017).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Crowdfunding performance, market performance, and the moderating roles of product innovativeness and experts' judgment: Evidence from the movie industry

Roma

Natalicchio

Panniello

et al. 2023

J of Product Innov Manag

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Reward‐based crowdfunding (CF) has emerged as a method to solicit funds for innovative projects. Yet, little is still known about the ability of reward‐based CF to act as a signal in the eyes of future consumers, and thus boost the future market performance of new products that innovators intend to commercialize using the campaign funds. In addition, scant research has clarified the boundary conditions that can magnify or weaken the efficacy of this CF signal. Given the relevance of reward‐based CF for supporting innovation, understanding when the CF campaign performance works as an effective signal is of great interest, especially in business settings characterized by high product quality uncertainty. By using the movie industry as a setting, we contribute to fill this gap. Specifically, we argue that the positive effect of the reward‐based CF performance is moderated by two important factors influencing consumers' purchase decisions: the degree of product innovativeness and the expert judgment about the product. Elaborating on the effects of product innovativeness, we posit that this product feature should moderate the positive relationship between CF and subsequent market performances in an inverted U‐shaped fashion. Favorable expert recommendations, on the other hand, should weaken the efficacy of the CF performance as a signal. Results from a sample of 1059 new movies (of which 152 released in theaters) confirm these predictions and offer several remarkable implications for innovators.

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“…While these experts were informed about the general scope of the research, they were not informed about the specific formulation of our hypotheses to prevent any influence in their evaluation. Although we relied on the experience of these five professionals for the evaluation, to further reduce any assessment variability due to different interpretation of a post, we instructed them to adhere to the definitions provided by the U.S. Bureau of Labor Statistics (http://www.bls.gov/green/) when evaluating a post, as done for instance in recent environmental sustainability studies (Calic & Mosakowski, 2016;Mrkajic et al, 2019;Roma et al, 2023).…”

Section: Main Independent Variablesmentioning

confidence: 99%

The performance of green communication across social media: Evidence from large‐scale retail industry in Italy

Crapa,

Latino,

Roma

2023

Corp Soc Responsibility Env

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Social media have surged prominently as communication channels for corporate social responsibility. However, little is still known about the performance of green versus non‐green communication across different social media. We contribute by examining whether the presence of green features in social media communication exerts a beneficial effect on consumer response in terms of likes, comments, and shares. We also investigate how this effect hinges upon the social media platform where the content is posted as well as the richness of the format (text, photos, videos) utilized for the diffusion. To our scopes, we use an ad hoc dataset of posts of two major large‐scale retailers in Italy across three major social media, namely Facebook, Instagram, and Twitter. Our results show that, while green content generally stimulates larger response than non‐green content, its effect varies across social media, with the highest effect being observed on Instagram (at least for likes) and the lowest on Twitter (at least for comments). Moreover, the extent to which the positive effect of green content increases as media richness increases (i.e., moving from only text to text plus photo, and then to text plus video) is also contingent upon the social media platform. On Facebook, the moderation of media richness is positive and significant, while being insignificant on Instagram. On Twitter, the moderation is even nonmonotonic in the sense that the highest (positive) effect of green content tends to be obtained for either low or high media richness. Our findings offer remarkable implications for firms engaging in environmental sustainability.

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Environmental Sustainability Orientation, Reward-Based Crowdfunding, and Venture Capital: The Mediating Role of Crowdfunding Performance for New Technology Ventures

Cited by 15 publications

References 50 publications

Reducing early-stage Cleantech funding gaps: an exploration of the role of Environmental Performance Indicators

Reducing early-stage Cleantech funding gaps: an exploration of the role of Environmental Performance Indicators

Crowdfunding performance, market performance, and the moderating roles of product innovativeness and experts' judgment: Evidence from the movie industry

The performance of green communication across social media: Evidence from large‐scale retail industry in Italy

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