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Journal of Emerging Markets and Management

Geopolitical Risk and Crowdfunding Performance: The Moderating Effect of Social Influence

DOI:

https://doi.org/10.63385/jemm.v1i3.165

Keywords:

Crowdfunding Performance, Geopolitical Risk, Social Influence

Abstract

This paper empirically investigates the effect of geopolitical risk (GPR) on crowdfunding campaign performance in the context of the Russia-Ukraine conflict. Drawing on a dataset of 344 campaigns launched on the Kickstarter platform across eight countries that experienced substantial changes in GPR, we examine how heightened geopolitical uncertainty influences entrepreneurial financing outcomes. Specifically, we explore the moderating role of social influence, focusing on founder dynamism through social media activity and the intensity of stakeholder engagement measured by the number of comments exchanged. Employing logistic regression techniques and performance indicators such as campaign success, number of contributors, and funding rate, our analysis reveals that geopolitical tensions exert a significantly negative impact on crowdfunding performance. However, we find that proactive communication strategies and strong stakeholder interaction can mitigate these adverse effects, enabling campaigns to maintain momentum even in uncertain environments. The findings contribute to the growing literature on crowdfunding under external shocks by highlighting the importance of digital engagement in sustaining trust and participation. From a practical perspective, our results offer actionable insights for entrepreneurs, crowdfunding platforms, and policymakers. Strengthening digital visibility, encouraging interactive communication, and fostering community involvement emerge as effective tools to enhance campaign resilience under geopolitical disruptions.

References


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