Creating complementarities: How entrepreneurs mobilize crowdfunding and local ecosystems

Abstract

Entrepreneurs increasingly tap into both spatial and digital resource environments to mobilize critical resources in support of new ventures. Yet, we know surprisingly little about how entrepreneurs make joint use of these environments. Linking the recent debate on spatial and digital affordances to the resource mobilization literature, this study examines how entrepreneurs mobilize critical resources from local ecosystems and the crowdfunding platform Kickstarter in complementary ways. We discuss two strategies of resource mobilization. (1) The circular strategy, which is mainly applied by social ventures, leverages community narratives and support for crowdfunding campaigns to strengthen and expand the very community support the campaigns are based on. (2) The cumulative strategy, which is mainly applied by commercial high-tech ventures, mobilizes the symbolic value of local institutional ties to attract crowdfunding backers and uses crowdfunding success to attract new resource-holders in local ecosystems. Our findings contribute to research on entrepreneurial resource mobilization and our understanding of the interplay of spatial and digital affordances.