Table 3 - uploaded by Michael A. Stanko
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Crowdfunding is now a commonly used tool for innovating entrepreneurs, yet many unresolved questions surrounding crowdfunding's effect on innovation remain. Often, crowdfunding backers play an active role in the innovation conversation. Thus, crowdfunding can be viewed as one form of open search (actively seeking out ideas from outsiders). Beyond o...
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... Model 3 includes interaction terms between both open search depth and breadth with the portion of NPD complete. While not specifically hypothesized with respect to product market performance, Model 3 is included in Table 2 to allow for contrasts to be drawn with the equivalent model in Table 3. For Models 1-3, sample size (n=196) exceeds standard guidelines (i.e., ten observations per independent variable). ...
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... Table 3, radical innovation focus is specified as the dependent variable. Since entrepreneurs' level of ambition may impact their subsequent focus on radical innovation, we control for the campaigns' ...
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... 3 includes interaction terms between both open search depth and breadth with the portion of NPD completed and is included to test H5. Sample size (n=173) for all models in Table 3 meets traditional sample size requirements. ...
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... with the previous set of analyses, several diagnostics are performed. Table 3 is 3.0). White's (1980) general test for specification error does not detect significant evidence of misspecification (p > .10 for all models). ...
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... used the number of updates as a control variable in our analyses; while not a hypothesized variable of interest, the results are nonetheless insightful. Notably, the number of updates to backers is significantly, positively related to radical innovation focus (see Table 3). A high number of updates to backers indicates that crowdfunders are playing an active role in initiating dialogue with backers. ...
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Citations
... An important question for further research is to study how ECF can aid green innovation. Several studies analyze the role of ECF to influence innovation by financing creative ventures [see e.g., Stanko andHenard (2017), Sorensen et al. (2016), Mollick and Robb (2016)]. However, prior work fails to address the important question on how financial innovations such as crowdfunding can enable green innovation. ...
We investigate the impact of capital injections from successful equity crowdfunding campaigns on firm-level employment growth. The main focus is on how equity crowdfunding can benefit sustainable ventures in creating jobs. Consistent with that investors attach non-monetary values to sustainable investments, we show that sustainable ventures raise 34.5% more funding. The resulting financial constraints relaxation leads to an increased head count of 26.2% relative to control firms. Interestingly, the effect persists after controlling for the amount of equity capital raised suggesting that managers might be driven by altruistic motives or is endowed with a greater supply of potential candidates. Our study highlights that financial innovations such as crowdfunding could aid sustainable job creation, and thus the greening of the economy.
... In the pecking order, one would therefore expect it to be highly ratedalthough this assumes a low acquisition cost, which bid success rates may not support. Secondly, it encourages the contextualisation of ECF within a universe of low-preference third-party equity finance sources whilst providing scope to contemplate the additionality the 'crowd' may bring such as providing input to innovation (Stanko and Henard, 2017). It should be noted attitudes are polarised regarding ECF as a source of capital (see 2.3.1). ...
... Business Angels (BAs) and Venture Capitalists (VCs) would not use ECF. As such, its use is a contraindicator of enterprise qualityclearly situating ECF within Myers and Majluf's (1984) pecking order, although this overlooks the additionality point raised by Stanko and Henard (2017). ...
... In line with Stanko and Henard (2017), Mollick and Nanda (2016) highlighted a positive, modelfounded additionality feature in reward-based crowdfunding: the 'wisdom of the crowd'with support for projects being an effective signal of quality. It is not unreasonable to transfer this 'quality signal' assertion to ECF, explaining why entrepreneurs might prefer it over BAs and VCs. ...
This study examined British companies funded from two new sources. It sought to develop an understanding of recipients’ profiles, success, and the factors which contributed to success. Three samples were constructed: equity crowdfunded businesses; Innovate UK funded businesses; and companies funded by both. Data used was up to ten years younger than that found in prior work.
Balance sheet-derived data were tested for differences between samples in the funding year; rates of change post-funding were also tested for differences. A multiyear measure to describe post-funding performance (change in shareholders’ equity) was identified which may benefit future researchers as a success measure. Finally, a proportional hazards regression identified observable business conditions which contributed to survival.
Post-funding failure timings were similar between samples. Those funded by both sources were less mature than those only receiving Innovate UK grants. Shareholders’ equity behaviours were shown to differ depending on survival outcome. The covariates which influenced survival varied by sample. Age at funding and single investor dominance influenced the equity crowdfunded sample. Total grant drawn was influential in the Innovate UK sample. In the combined sample: gender; project length; and the total number of crowdfunding investors all contributed to statistically significant proportional hazards models (with high type I risk).
... Firstly, green innovative enterprises face elevated financing risks, and green finance tends to be more cautious, amplifying inspection difficulties. Green venture capital is pivotal for promoting GI in real industries, necessitating long-term stable financial support (Wei et al., 2015;Stanko and Henard, 2017). However, financial resources are limited and unevenly distributed, leading some enterprises to bear substantial financing risks to secure funding (Talavera et al., 2012). ...
As governments worldwide grapple with the urgent need to mitigate climate change, understanding the nuanced relationship between fiscal targets and environmental innovation is crucial for crafting effective policy frameworks. Green technological advancement stands as the cornerstone of enterprise competitiveness, driving improvements in both economic prosperity and environmental sustainability. Government fiscal policies play a pivotal role in shaping the landscape of green transformation within enterprises, particularly through the establishment of fiscal revenue targets. Drawing upon data from prefecture-level cities and enterprise records, this study employs empirical analysis utilizing a fixed effects model and instrumental variable method. Our findings underscore the significant impact of fiscal revenue target setting on the trajectory of green technological advancement within enterprises. Specifically, the imposition of fiscal revenue growth targets exerts a dampening effect on the propensity for green technological advancement among enterprises. Notably, this disincentive is particularly pronounced among state-owned enterprises, as well as those with lower and moderate returns on capital, and those characterized by labor-intensive operations. Furthermore, our research delves into the underlying mechanisms of this inhibitory effect. We ascertain that the pressure associated with fiscal revenue growth targets hampers corporate green technological advancement by amplifying tax burdens and exacerbating financing constraints. In light of these findings, our study not only contributes to the theoretical understanding of the interplay between government fiscal policies and corporate innovation but also provides empirical evidence to inform strategies aimed at reconciling the imperative of fiscal revenue growth with the imperative of fostering green technological advancement within enterprises. In the broader context of governmental efforts to address climate change, this research underscores the importance of aligning fiscal policies with environmental objectives.
... Contributors enjoy community benefits linked to their experience as consumers (Belleflamme et al., 2014). They adhere to capital also to adopt early a new product or have a direct and privileged interaction with the consumer community and the entrepreneur (Stanko & Henard, 2017). b) Investors: they are mainly retail investors who are attracted by the equity-based model. ...
This paper highlights the factors that influence young people’s attitude to participate in crowdfunding campaigns, and to what extent such factors impact their investment intentions. A quantitative approach is employed using a survey to gather information from Al Maaref University students about the determinants influencing their intentions to invest in crowdfunding and to explain how such factors affect their attitudes towards crowdfunding decisions. This study found that emotions and attitudes as well as attitudes and PBC are statistically and positively related. Moreover, personality types ‘Agreeableness (A) and Neuroticism (N)’ have a positive impact on PBC (with p ˂ 10%), and subjective norms (SN) have a direct influence on engagement intention (EI) (p ˂ 5%). PBC has a positive impact on EI (p ˂ 5%), and risk preferences have a positive impact on EI (with p ˂ 10%). In addition, results show that personality types do not have a positive impact on SN, and personality types Extraversion (E), Conscientiousness (C), and Openness (O), do not have a positive impact on PBC. Subjective norms do not have a positive impact on attitudes (p ˃ 5%). Moreover, PBC does not have a direct influence on SN or behavior, risk preferences do not have a positive impact on EI (p ˃ 5%), and demographic factors do not have a positive impact on EI. The findings of the study shall promote the comprehension of the influences that motivate young entrepreneurs to participate in crowdfunding campaigns. This paper’s findings benefit investors, fintech decision-makers, and policymakers.
... Contributors enjoy community benefits linked to their experience as consumers (Belleflamme et al., 2014). They adhere to capital also to adopt early a new product or have a direct and privileged interaction with the consumer community and the entrepreneur (Stanko & Henard, 2017). b) Investors: they are mainly retail investors who are attracted by the equity-based model. ...
This paper highlights the factors that influence young people's attitude to participate in crowdfunding campaigns, and to what extent such factors impact their investment intentions. A quantitative approach is employed using a survey to gather information from Al Maaref University students about the determinants influencing their intentions to invest in crowdfunding and to explain how such factors affect their attitudes towards crowdfunding decisions. This study found that emotions and attitudes as well as attitudes and PBC are statistically and positively related. Moreover, personality types 'Agreeableness (A) and Neuroticism (N)' have a positive impact on PBC (with p ˂ 10%), and subjective norms (SN) have a direct influence on engagement intention (EI) (p ˂ 5%). PBC has a positive impact on EI (p ˂ 5%), and risk preferences have a positive impact on EI (with p ˂ 10%). In addition, results show that personality types do not have a positive impact on SN, and personality types Extraversion (E), Conscientiousness (C), and Openness (O), do not have a positive impact on PBC. Subjective norms do not have a positive impact on attitudes (p ˃ 5%). Moreover, PBC does not have a direct influence on SN or behavior, risk preferences do not have a positive impact on EI (p ˃ 5%), and demographic factors do not have a positive impact on EI. The findings of the study shall promote the comprehension of the influences that motivate young entrepreneurs to participate in crowdfunding campaigns. This paper's findings benefit investors, fintech decision-makers, and policymakers.
... Entrepreneurs are also motivated to crowdfunding because it provides opportunities for community development . Crowdfunding participation helps legitimize projects and ventures (Maier et al, 2021;Vergara & Vergara, 2023), which helps entrepreneurs secure additional funding (Roma et al, 2017;Vergara & Vergara, 2023) and gain access to knowledge ecosystems (Troise et al, 2022) and markets (Gamble et al, 2017;Stanko & Henard, 2017). Crowdfunding, through consumer feedback and access to knowledge systems, help drive innovation in crowdfunded ventures (Mahdiraji et al, 2022). ...
This chapter investigates mindfulness's role in building resilience toward survivability, sustainability, and better governance of micro, small, and medium enterprises through extensive literature review and in-depth analysis of Barangay Nagbalon experience, this examines how the role of mindfulness in building resilience, survivability, sustainability, and better governance in Micro, Small, and Medium Enterprises (MSMEs), mindfulness practices have been implemented in Micro, Small, and Medium Enterprises (MSMEs) to promote resilience, sustainability, and better governance, challenges in incorporating mindfulness into different organizational cultures analyzed, this chapter highlights the role of stakeholders in Barangay Nagbalon achieving resilient, sustainable, and better governance of MSMEs in the context of innovation and incubation initiatives, the significant relationship between mindfulness practices and SAMAKANA enterprise success in times of crisis, and the identified implications of harnessing mindfulness in building resilience, sustainability, and better governance in Municipality of Marilao. This explanatory chapter was also based on the secondary data and literature review and aspires to offer deeper insights for entrepreneurs, innovators, educators, business owners, and other professionals into the role of mindfulness in building resilience, survivability, sustainability, and better governance in Municipality of Marilao.
... Conversely, the kind of savings pool that is more amenable to highrisk borrowers often include a significant portion of savings mobilized through similarly high-risk tolerant and/or varied non-traditional sources, such as micro-finance institutions, revolving and rotating micro-saving schemes, venture capital funds, crowdfunds, donations and social-purpose oriented funds, and government credit support programs (Ashraf et al., 2010;Ojah & Mokoaleli-Mokoteli, 2010;Kaboski et al., 2014;Stanko & Henard, 2017;and others). Third, the model for provisioning finance by mainstream financial intermediaries is based primarily on borrowers' demonstrated predictable cash flows from which debts could be serviced. ...
The financial inclusion paradigm is increasingly considered a veritable development model. Therefore, we argue that a deeper understanding of it is necessary for enabling policies and strategies that would yield positive development outcomes (successful financial inclusion). We explore this argument by first, defining “effective financial inclusion” along the lines of identifiable population groups that are often financially excluded from mainstream financial services; and second, by hypothesizing that large national savings pools are a crucial prerequisite for effective financial inclusion. Furthermore, we posit that if effective, financial inclusion should enhance economic welfare, thus engendering “successful financial inclusion.” We evaluate these hypotheses by using a battery of econometric techniques, and document robust supportive findings. Moreover, we evolve first-of-its-kind robust definition of financial inclusion and provide unambiguous evidence that would guide governments and other stakeholders on how to leverage financial inclusion, as a development model, more productively. Importantly, we highlight the primacy of large savings pools for effective financial inclusion.
... Crowdfunding backers represent, in fact, a target of clients already averse to risk. Project initiators test the launch of innovative products within a market sample, also having the opportunity to establish a direct link with their early adopter (Stanko & Henard, 2017). ...
Due to the risky nature of newly creative projects for entrepreneurs, reward-based crowdfunding is currently an alternative fundraising channel for those who need seed funding to finance the creation of their prototype. The objectives of this research are to explore the success factors, including entrepreneurial, project and campaign factors, in project fundraising under a reward-based crowdfunding platform. We propose to develop a model for predicting the success of crowdfunding projects by machine learning. The datasets have been retrospectively gathered from historical records of campaigns in the Kickstarter website. The study's findings show that the logistic regression and decision tree models, respectively, had accuracy rates of 88.2% and 88.8%. The highest accuracy percentage of 94.1% originates from new testing data that has been externally validated for the technology industry. The practical implication of our research is that entrepreneurs can apply the proposed prediction model to identify the most influential topical features embedded in campaigns.
... With the increasing complexity of knowledge, organizations recognize that they cannot rely solely on internal knowledge reserves to sustain competitiveness (Chesbrough and Garman, 2009;Enkel et al., 2009). This development has prompted many organizations to adopt open systems of innovation as a strategic focus (Stanko & Henard, 2017;Ye & Kankanhalli, 2013;Chesbrough, 2020;Díaz-Canel & Delgado Fernández, 2021;Jaramillo Vélez, 2020;Rodríguez, 2020;Salazar et al, 2020;Torres, 2021;Zúñiga & Martínez, 2021;Castillo et al, 2023;Elichiry, 2023;Kantis et al, 2023 andPortocarrero García &Timaná (2023). ...
... Entrepreneurs gain access to new sources of financing and new investors (Le Pendeven & Schwienbacher, 2021;Stanko & Henard, 2017). The digital nature of the share purchase process makes it possible to invest in projects that, if only due to their size, would not be taken into account by institutional investors (Troise & Tani, 2021;Wang et al., 2019). ...
Research background: The majority of research on equity crowdfunding concerns its evolution in developed countries. There are still relatively few works devoted to equity crowdfunding in developing regions, including Poland. Taking this into account and the lack of research on the effectiveness of ECF-based IPOs, there is a research gap that this article is trying to fill. This paper also contributes to the extensive literature dealing with the occurrence of the IPO underpricing phenomenon and focuses on a regional study on IPO underpricing in the still niche ECF-based IPOs. Purpose of the article: The article aims to show the development of equity crowdfunding in Poland. The article also aims to (i) evaluate the effectiveness of debuts of companies that raised funds (and thus carried out their IPOs) using ECF platforms, and (ii) find the determinants of ECF-based IPOs performance. Methods: The model for testing the potential determinants of ECF-based IPO performance is based on univariate linear regressions measuring the relationship between a dependent variable which stands for ECF-based IPO underpricing and one independent variable (chosen from a set of potential explanatory variables. Findings & value added: The article shows that since 2020 ECF has become an important source of financing for listed SMEs in Poland. Based on the stylized fact on the risk-return tradeoff, it is assumed that ECF-based IPOs are more underpriced than IPOs of other companies to attract investors. The paper revealed that the effectiveness of ECF-based IPOs has mainly the cyclical nature and it depends on the stock price cycle. ECF-based IPOs are more underpriced then other IPOs only in the bull market while in the bear market they are more overpriced. To the best of my knowledge, this is the first study to explore the performance of ECF-based IPOs. Although this paper focuses on Poland, it opens the potential for broader global research in this area. The article can also hold significant practical value for all participants of the ECF market.
