An Analysis of Incentive Structures in Collaborative Economy: An Application to Crowdfunding Platform

Zhang, Na; Datta, Sumon; Kannan, Karthik

doi:10.2139/ssrn.2518662

Cited by 10 publications

(29 citation statements)

References 14 publications

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“…First, this research contributes to the literature of crowdfunding project success by studying the degree of project success instead of the possibility to succeed. Prior literature mainly takes the success as a binary construct that distinguishes between success and not success [3,19,32,34,35]. However, every fundraiser expects to raise as much funds as possible even the original funding goal has been reached, because new business ventures can be more smoothly started up with more funds.…”

Section: Discussionmentioning

confidence: 99%

“…[3,21]. [3,20] Project design strategies [19,32,34] Second, some studies explored the project success by focusing on the perspective of social capital associated with the fundraisers [11,21,35]. Specifically, Giudici, Guerini and Lamastra [11] distinguished between individual and territorial social capital, and concluded that the individual social capital positively affected the crowdfunding project success, while the geo-localized capital had negative influence on the project success.…”

Section: Crowdfunding Project Successmentioning

confidence: 99%

“…For instance, the effect of project reward structure on project outcomes was examined, and it was found that the reward levels with popular options till date were perceived to be more favorable [34]. Another study indicated that a project with higher maximum backing price and less reward tiers in the reward schemes could raise more money [32].…”

Section: Crowdfunding Project Successmentioning

confidence: 99%

“…All fundraising campaigns launched on crowdfunding platforms have a goal of successfully raising funds. Prior crowdfunding literature has studied the antecedents of project success; that is, how a project could achieve its set goal [3,19,32,34,35]. However, these studies were mainly from the perspective of fundraisers by examining factors such as project quality, social capital of fundraisers, and project design strategies.…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, it is equally important to take the role of the crowds into account as well as the crowd capability (i.e., organization's capability to engage the IT-mediated crowds) of fundraisers. Since the crowd capability of fundraisers has been well-studied in the past [3,19,32,34,35], we choose to focus on the effect of the crowds on generating crowd capital, i.e., crowdfunding project success in the current context.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

An Empirical Investigation on the Impact of Crowd Participation on the Degree of Project Success: The Perspective of Crowd Capital

Yin¹,

Mirkovski

Liu³

et al. 2017

Proceedings of the 50th Hawaii International Conference on System Sciences (2017)

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Section: Discussionmentioning

confidence: 99%

Section: Crowdfunding Project Successmentioning

confidence: 99%

Section: Crowdfunding Project Successmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

An Empirical Investigation on the Impact of Crowd Participation on the Degree of Project Success: The Perspective of Crowd Capital

Yin¹,

Mirkovski

Liu³

et al. 2017

Proceedings of the 50th Hawaii International Conference on System Sciences (2017)

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Market imperfections and crowdfunding

Miglo

2018

Small Bus Econ

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This paper o¤ers a model of crowdfunding that represents a growing area of interest among practitioners and theorists. It is one of the …rst articles analyzing the choice between the di¤erent types of crowdfunding (reward-based vs. equity-based) and the choice between crowdfunding and traditional …nancing. The model is based on standard market imperfections such as asymmetric information and moral hazard as well as on some speci…c features of crowdfunding including the market feedback regarding new projects. The model provides several implications, most of which have not yet been tested. For example, we …nd that when asymmetric information is important, high-quality projects prefer reward-based crowdfunding. The choice of an all-or-nothing mechanism as opposed to a keep-it-all can serve as a signal of a …rm's quality ("signalling by riskbearing"). Crowdfunding is selected over a traditional bank loan if the demand for the product is either very small or very large.

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Does more crowd participation bring more value to crowdfunding projects? The perspective of crowd capital

Yin

Liu

Mirkovski

2019

INTR

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Purpose The purpose of this paper is to focus on investigating the impact of crowd participation on degree of project success, which is defined as the total amount of funds a project can obtain after it reaches its initial funding goal threshold. Design/methodology/approach Drawing on the theory of crowd capital, this study develops six hypotheses about the impact of crowd capability of a fundraiser (i.e. project updates, goal setting, reward levels and social media usage) and crowd participation (i.e. namely, funds pledge and on-site communication) on degree of project success. The hypotheses are tested using data sets of successful projects collected from two popular crowdfunding websites. Findings This study finds that funds pledge has an inverse U-shaped relationship with degree of project success. Project updates, reward levels and on-site communication positively influence degree of project success, while funding goal negatively affects degree of project success. Research limitations/implications This study contributes to prior literature by investigating the degree of project success determinants using the perspectives of both fundraisers and crowds, which provides a more comprehensive understanding of what makes a crowdfunded project a success. Practical implications The empirical results of this study provide fundraisers with guidelines about how to access more funds after achieving the initial funding goals. Originality/value This work is one of the first to investigate the degree of project success and its determinants from the perspectives of both fundraisers and crowds.

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An Analysis of Incentive Structures in Collaborative Economy: An Application to Crowdfunding Platform

Cited by 10 publications

References 14 publications

An Empirical Investigation on the Impact of Crowd Participation on the Degree of Project Success: The Perspective of Crowd Capital

An Empirical Investigation on the Impact of Crowd Participation on the Degree of Project Success: The Perspective of Crowd Capital

Market imperfections and crowdfunding

Does more crowd participation bring more value to crowdfunding projects? The perspective of crowd capital

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