Community Impact on Crowdfunding Performance

Inbar, Yael; Barzilay, Ohad

doi:10.2139/ssrn.2524910

Cited by 10 publications

(17 citation statements)

References 58 publications

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“…Subsequently, we suggest future research to further investigate the crowd backing a project, answering who is the crowd and 'which' crowd must be attracted. This question has already been approached by a few previous studies (Inbar & Barzilay, 2014;Steigenberger, 2017;Zhang & Chen, 2019a), however, a fine-grained quantitative analysis of the individuals backing crowdfunding projects considering the funding goal a moderating determinant for project success remains desired.…”

Section: Limitations and Avenues For Future Researchmentioning

confidence: 99%

Re-Examining Crowdfunding Success: How the Crowdfunding Goal Moderates the Relationship of Success Factors and Crowdfunding Performance

Pinkow¹,

Emmerich²

2021

CEBR

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The factors determining the success of crowdfunding projects is one of the central issues for crowdfunding researchers. Quantitative approaches recognise the number of funds targeted as an important control variable. However, little is known about the impact of the funding goal on other factors that impact crowdfunding success. We hypothesise that the effect of crowdfunding success factors varies contingent on the funding goal level. A dataset of 338 crowdfunding projects from the largest German crowdfunding platform StartNext in the years 2015 to 2016 is analysed by conducting regression analyses controlling for varying funding goal sizes. We use the dependent variables success, the degree of success and the number of project supporters and control whether the effect of independent variables such as comments, updates and social media depend on different funding goals. Our study indicates that the impact of the investigated success factors, in fact, strongly depends on the funding goal levels of crowdfunding projects. By grouping projects into clusters of varying funding goals, we find that the impact of individual success factors changes and that the funding goal plays a moderating role for factors impacting project success. Implications for Central European audience: Many crowdfunding studies focus on the most popular US-based platforms like Kickstarter or Indiegogo. We examined projects on the largest German reward-based crowdfunding platform StartNext. These results help both researchers and future entrepreneurs in Europe to better understand supporter behaviour. We suggest that future entrepreneurs should be aware that factors influencing the success of a crowdfunding project strongly depend on the set funding goal, which should be adequately considered in future crowdfunding research.

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Section: Limitations and Avenues For Future Researchmentioning

confidence: 99%

Re-Examining Crowdfunding Success: How the Crowdfunding Goal Moderates the Relationship of Success Factors and Crowdfunding Performance

Pinkow¹,

Emmerich²

2021

CEBR

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“…Funders' relationships with a support-based crowdfunding platform display slightly more variety. Recent studies have revealed that most funders using support-based platforms back only one project (Inbar & Barzilay, 2014;Marom & Sade, 2013). Although these one-time funders, who usually have a personal attachment to a specific project, are in the vast majority, repeat funders play a significant part for the platform.…”

Section: Frequency Of Interactionmentioning

confidence: 99%

“…In an important development, one also finds hybrid sites, which encompass multiple funding mechanisms. Most studies have focused on large-scale platforms of this nature, such as Kickstarter, where the variety of project categories and rewards is huge (e.g., Hahn & Lee, 2013;Inbar & Barzilay, 2014;Kuppuswamy & Bayus, 2015;Lin, Boh, & Goh, 2014;Marom & Sade, 2013;Mollick, 2014). One might expect the funders and applicants involved with these platforms to be quite heterogeneous in their motivations and, therefore, not representative of the entire crowdfunding landscape.…”

Section: Platform-internal Decision-makingmentioning

confidence: 99%

Exploring the Co-operative Form’s Potential in Crowdfunding: A Non-monetary Perspective

Talonen

Pasanen

Ruuskanen

2020

FIIB Business Review

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Technology-driven change has generated new, even revolutionary business models, characterized by high levels of user participation. In the finance field, business models based on crowdfunding have seen significant growth and entered use as an alternative means of extending access and gaining financing for various types of projects. Nonetheless, current crowdfunding practices have been subject to criticism for issues such as information asymmetry, lack of trust and transaction costs, spurring discussion of how to develop and improve these practices. One way of speaking to the criticism has been a suggestion that platforms could be owned by the ones who use them. While the associated way of thinking, referred to as platform co-operativism, has seen some inroads in practice, its novel and practical nature means that a clear knowledge gap remains with regard to its potential for dealing with challenges of platform economy. Consequently, the aim of this study is to examine the relevance and potential of the co-operative company form for crowdfunding arrangements. Our conceptual study utilizes existing research on co-operatives and considers features of crowdfunding from three different perspectives: asymmetry of information and of trust, interaction frequency and homogeneity of interests. As a result, we provide three taxonomies for outlining future research on co-operative platforms.

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“…According to Rogers (2003), polymorphism is "the degree to which an individual acts as an opinion leader for a variety of topics," while monomorphism "is the tendency for an individual to act as an opinion leader for only a single topic" (p. 314). Prior research has argued that interest concentration can indicate whether the crowdfunder is knowledgeable and experienced in certain areas (Hahn & Lee, 2013;March, 1991), and can be associated with considerable diversity in patterns of participation (Inbar & Barzilay, 2014). Distinguishing between monomorphics and polymorphics can help us identify opinion leaders whose influence span multiple areas (King & Summers, 1970;Silk, 1966).…”

Section: Interest Concentrationmentioning

confidence: 99%

How different Are crowdfunders? Examining archetypes of crowdfunders

Lin

Boh

2019

Asso for Info Science & Tech

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We unpack the complexities of the crowdfunder community by identifying different archetypes of crowdfunders funding technology projects on Kickstarter. com. Drawing on the extant literature on innovation adoption and opinion leadership, we propose two dimensions of crowdfunders that capture the heterogeneity in crowdfundersʼ behavior: opinion leadership and interest specialization of crowdfunders. Using a set of variables representing these two dimensions, our analysis revealed five distinct archetypes of crowdfunders: the Vocal Actives, the Silent Actives, the Focused Enthusiasts, the Trend Followers, and the Star Seekers, who each adopted distinct crowdfunding strategies. We established external and criterion-related validity of the cluster solutions in multiple ways. Our results suggest that the composition of crowdfunders is complex, even within a single platform.

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Community Impact on Crowdfunding Performance

Cited by 10 publications

References 58 publications

Re-Examining Crowdfunding Success: How the Crowdfunding Goal Moderates the Relationship of Success Factors and Crowdfunding Performance

Re-Examining Crowdfunding Success: How the Crowdfunding Goal Moderates the Relationship of Success Factors and Crowdfunding Performance

Exploring the Co-operative Form’s Potential in Crowdfunding: A Non-monetary Perspective

How different Are crowdfunders? Examining archetypes of crowdfunders

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