Crowdfunding, Networks, and Technology: A Model of Institutional Emergence in Sustainable Entrepreneurial Ecosystems

Abstract

The purpose of the study is to explore how the sustainable entrepreneurship ecosystem impactssocial networks, which in turn influences the emergence of institutions. Additionally, the presentwork leverages technological advancement and social networks to uncover the intricatemechanism by which crowdfunding impacts institutional diversity.The quantitative data collected from 256 participants, comprised of angel investors, venturecapitalists, government employees (regulators) and other entrepreneurs or individuals(educationists) that promote entrepreneurial activities, are analyzed through the PLS-SEMmethod. Convenience sampling technique was adopted to collect the dataset.The current study explored that sustainable entrepreneurship ecosystem positively influencesthe institutional emergence, including those funded through crowdfunding. The results revealedthat technological advancement and the presence of strong social networks positively impact therelationship between the sustainable entrepreneurship ecosystem and the emergence of differenttypes of institutions.Organizations need to leverage social media analytics with technological tools to gain the deeperunderstanding the need for new institutions. Moreover, organizations involved in technologicalinnovation and entrepreneurship need to analyze how these innovations influence the market,regulatory framework and environment. Policymakers and communities’ leaders need toencourage social networking spaces as part of strategies to nurture the entrepreneurialecosystem.The changing environment and technological advancement encourage the entrepreneurialecosystem to structure new entities with specific objectives to thrive, bolstered supportivenetworks. The present work provides novelty in existing literature by adding an additional layerto understand the impact of social networks and technological innovation on forming newinstitutions.