New Article: The Power of a Smile: The Use of Smiles and Adjectives in Crowdfunding Social Media

Abstract

In the last decade, crowdfunding has emerged as a novel, yet prevailing way for new ventures to acquire capital. Successful crowdfunding campaigns are often accompanied by entrepreneurs’ social networking activities. However, our understanding of an entrepreneur’s ability to convey trustworthiness and generate investment interest through first impressions on online social networking sites is incomplete. Hence, we explore how entrepreneurs can use impression management tactics online to increase perceptions of trustworthiness and investor interest. Using an experimental vignette design, we examine whether the use of smiling versus non-smiling pictures and adjective enhanced headlines versus unadorned headlines on the LinkedIn platform influence both perceptions of trustworthiness and investment interest by crowdfunding investors. The results suggest that LinkedIn profile pictures with a smile (versus no smile) increase perceptions of trustworthiness and investment interest. This study contributes to a better understanding of how impression management on social networking sites can affect online crowdfunding success.

URL

https://jsbs.scholasticahq.com/article/124011-the-power-of-a-smile-the-use-of-smiles-and-adjectives-in-crowdfunding-social-media

Management Summary

In my latest paper published this month with Jennifer D. Golden, DBA, Katie Weaver, Ph.D, Mark Shore, DBA, and Charles Naquin, Ph.D, we examined the effects of extraverted behavior on trust in a crowdfunding context.

In the study (6 years in the making), we conducted a randomized vignette experiment where crowdfunding investors examined the LinkedIn profiles of four crowdfunding entrepreneurs and allocated funds to their campaigns based only on their profiles. We operationalized smiling and extraverted adjectives.

Supporting two hypotheses, we found that smiling entrepreneurs were rated more trustworthy and received significantly more investment, from 24.3% to 39.2% more than non-smiling entrepreneurs. (Adjectives did not appear to affect trust or investment.)

This is one of the first studies exploring how LinkedIn profiles affect viewer perceptions. The LinkedIn platform is notoriously difficult for researchers to work with.

Of course, we are all on LinkedIn, but how many of us have considered our profile basics, such as a picture or headline? For those raising funds, it may be worth thinking more about.

References