Crowdfunding for entrepreneurial orientation in emerging markets: The moderating role of digital transformation

This study examines the intricate relationship between crowdfunding models and the entrepreneurial orientation (EO) of new ventures in emerging markets, with a particular focus on the moderating role of digital transformation. Grounded in Agency Theory and Resource Dependence Theory, we analyze data from 239 new venture firms in China to offer novel insights into how crowdfunding models—equity, reward, donation, and lending—shape entrepreneurial behaviors. Our findings reveal that equity-, reward-, and donation-based crowdfunding positively influence EO, fostering greater innovativeness, proactiveness, and risk-taking. Conversely, lending-based crowdfunding constrains entrepreneurial activities due to the repayment pressures it imposes. Digital transformation emerges as a pivotal factor, amplifying the benefits of equity- and reward-based crowdfunding while mitigating the negative impact of lending-based crowdfunding on EO. Surprisingly, digital transformation exerts limited influence on donation-based crowdfunding, underscoring its unique dynamics. This research advances our understanding of entrepreneurial financing by highlighting how crowdfunding, when strategically aligned with digital technologies, can serve as a catalyst for entrepreneurial growth in emerging economies. It offers significant implications for theory and practice, particularly for ventures navigating resource-scarce environments and leveraging digital tools to achieve competitive advantage.