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The Interdependence Between Donors and Investors: Liability of Hybridity, Entrepreneurial Ecosystem Affordances, and Venture Financing

Brandon Ofem¹; Ikenna Uzuegbunam²; Satish Nambisan³

¹ Global Leadership and Management Department, College of Business Administration, University of Missouri–St. Louis, St. Louis, MO, USA · ² Department of Management, School of Business, Howard University, Washington, DC, USA · ³ Department of Design and Innovation, Weatherhead School of Management, Case Western Reserve University, Cleveland, OH, USA

This study investigates how spatial and digital affordances within entrepreneurial ecosystems (EEs) enable early-stage hybrid ventures to overcome the liability of hybridity and to secure funding from both philanthropic and equity funding sources. Using a simultaneous equation model with a U.S.-based sample of 2,723 hybrid ventures, we demonstrate that philanthropic and equity funding exhibit a statistically and economically significant complementary relationship. We further find that accelerator participation weakens this complementary relationship, while social media utilization strengthens it. These findings highlight the mechanisms through which EE-based affordances enhance hybrid ventures’ ability to navigate competing institutional logics and attract diverse funding sources.

DOI

10.1177/10422587251347059

Volume

49 (5)

Pages

1357-1391

Language

en

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BibTeX

Sources

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