The effect of signaling on crowdfunding performance on social economy organizations in South Korea

Crowdfunding is an innovative means of financing entrepreneurial initiatives. This study explores the effect of signaling on the crowdfunding performance of social economy organizations (SEOs) in South Korea. Analyzing 677 reward-based crowdfunding projects by SEOs, we found that signaling social purpose, economic purpose, and organizational information were likely to be related to performance. In addition, signals reflecting an isomorphism akin to that of SEOs' identity were also positively correlated with crowdfunding performance. These findings contribute to the literature by offering insights about the effect of signals of SEOs on crowdfunding and demonstrating that fundraiser characteristics may influence crowdfunding performance.