Funders' positive affective reactions to entrepreneurs' crowdfunding pitches: The influence of perceived product creativity and entrepreneurial passion

This study draws upon affective events theory, research regarding funders' perceptions, and research regarding expectation alignment between products and their presenters to develop and test an indirect effects model of crowdfunding resource allocation decisions. To test our hypothesized relationships, we drew upon a sample of 102 participants who each assessed ten different product pitches made by ten different entrepreneurs. Results from the study indicate that perceived product creativity is positively related to crowdfunding performance, both directly and indirectly, via positive affective reactions of prospective funders. Moreover, we find the indirect effect of product creativity is contingent upon the extent to which funders perceive an entrepreneur to be passionate, such that perceived entrepreneurial passion increases the positive nature of the indirect effect. Implications for future theory development, empirical research and implications for practitioners are discussed as well. (C) 2016 Elsevier Inc. All rights reserved.