From Ecosystem to Institution: How Crowdfunding and Social Networks Drive Sustainable Entrepreneurship

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