Green-Oriented Crowdfunding Campaign: An Explorative Study

The worldwide growing concern for environmental protection compels businesses to incorporate green orientation in their strategies. Crowdfunding has opened new possibilities to attract investors by encompassing green concerns in their agenda. This study investigates the relationship between green orientation and UK crowdfunding campaign success. We have used both qualitative and quantitative approaches to build the green orientation index, for which we have chosen 210 green campaigns out of 720 crowdfunding campaigns. Then we performed a cluster analysis to identify three clusters (social enthusiast, green fan, and tech-oriented) of green-oriented crowdfunding campaign. We performed a predictive validity analysis to identify which cluster is more effective in ensuring the crowdfunding’s performance. The results show that tech-oriented obtain the highest value and share a positive relationship with the amount raised and crowdfunding’s success. Social enthusiast effectively attracts more crowd through the social platform and thereby successfully raises funds. Green orientation, however, does not affect crowdfunding success or overfunding, which shows that there is a huge difference between the clusters, suggesting that the green orientation itself is not considered so important for the crowdfunding campaigns. It also highlights a crucial point the in the crowdfunding’s objectives, the realization of the environmental concern, society, and the long-term sustainability concern is not promising.