Signaling Theory: A Review and Assessment

Crowdfunding allows founders of for-profit, artistic, and cultural ventures to fund their efforts by drawing on relatively small contributions from a relatively large number of individuals using the internet, without standard financial intermediaries. Drawing on a dataset of over 48,500 projects with combined funding over $237M, this paper offers a description of the underlying dynamics of success and failure among crowdfunded ventures. It suggests that personal networks and underlying project quality are associated with the success of crowdfunding efforts, and that geography is related to both the type of projects proposed and successful fundraising. Finally, I find that the vast majority of founders seem to fulfill their obligations to funders, but that over 75% deliver products later than expected, with the degree of delay predicted by the level and amount of funding a project receives. These results offer insight into the emerging phenomenon of crowdfunding, and also shed light more generally on the ways that the actions of founders may affect their ability to receive entrepreneurial financing.

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The Dynamics of Crowdfunding: Determinants of Success and Failure

What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

As well as review the literature on the notion of institutional entrepreneurship introduced by Paul DiMaggio in 1988, we propose a model of the process of institutional entrepreneurship We first present theoretical and definitional issues associated with the concept and propose a conceptual account of institutional entrepreneurship that helps to accommodate them We then present the different phases of the process of institutional entrepreneurship from the emergence of institutional entrepreneurs to their implementation of change Finally, we highlight future directions for research on institutional entrepreneurship, and conclude with a discussion of its role in strengthening institutional theory as well as, more broadly, the field of organization studies

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How actors change institutions : Towards a theory of institutional entrepreneurship

The dynamics of crowdfunding: An exploratory study

In this article we argue that (1) legitimacy is an important resource for gaining other resources, (2) such resources are crucial for new venture growth, and (3) legitimacy can be enhanced by the strategic actions of new ventures. We review the impact of legitimacy on new ventures as well as sources of legitimacy for new ventures, present strategies for new ventures to acquire legitimacy, explore the process of building legitimacy in the new venture, and examine the concept of the legitimacy threshold.

Beyond Survival: Achieving New Venture Growth by Building Legitimacy

A significant body of research exists on the top management teams (TMTs) of established firms and specifically on the heterogeneity of TMTs of established firms. Little research exists, however, on the heterogeneity of TMTs of firms in the early stages of their existence. In this study, I examine the relationship among TMT heterogeneity and the capital raised by the firm through its initial public offering (IPO). I argue that TMT heterogeneity provides a signal to potential investors about the quality of the IPO and hence is associated with greater capital accumulations. My findings suggest that heterogeneity in the TMT's functional background and educational background is associated with greater capital raised through an IPO.

The Influence of Top Management Team Heterogeneity on the Capital Raised through an Initial Public Offering

This study examines motivations of entrepreneurs in Venezuela, problems they face, and success factors. Results indicate that the desires of Venezuela based entrepreneurs to be one's own boss and to increase one's income are important motivators. Competition, a weak economy, and foreign exchange limitations are problems, while good general management skills, appropriate training, accurate record keeping, and political involvement are success factors. This paper examines multiple dimensions of entrepreneurs in a single context and so provides an integrated analysis. This paper also expands our understanding of Venezuela based entrepreneurs and contributes to the understanding of entrepreneurs around the globe.

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Motivation, success, and problems of entrepreneurs in venezuela

An initial public offering (IPO) is one of the most critical events in the life of a firm. As the IPO market continues to attract attention from both entrepreneurs and investors, research examining...

An Empirical Study of the Impact of CEO Characteristics on New Firms' Time to IPO*

Despite changes in international trade agreements and the introduction of new technologies that facilitate international business, many firms, especially SMEs, still do not diversify into international markets. In this paper, we suggest that an important factor that can influence the international diversification decision is social networks. We hypothesize that both the strength of the ties to international firms and the size of a SME’s international network influence its decision to diversify internationally. Our analysis suggests that the strength of international network ties significantly influences SME international diversification, but that the size of the international network does not. These results have important implications for researchers, managers, and public policy makers.

Monica A. Zimmerman

Papers

Beyond Survival: Achieving New Venture Growth by Building Legitimacy

The Influence of Top Management Team Heterogeneity on the Capital Raised through an Initial Public Offering

Motivation, success, and problems of entrepreneurs in venezuela

An Empirical Study of the Impact of CEO Characteristics on New Firms' Time to IPO*

Networks, SMEs, and International Diversification