I Am What I Pledge: The Importance of Value Alignment for Mobilizing Backers in Reward-Based Crowdfunding

Nielsen, Kristian Roed; Binder, Julia Katharina

doi:10.1177/1042258720929888

Cited by 47 publications

(35 citation statements)

References 99 publications

(165 reference statements)

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“…Our findings are consistent with the findings of other studies about the fact that backers donate to crowdfunding campaigns for altruistic reasons (Messeni Petruzzelli et al, 2019;Cappa et al, 2020;Nielsen and Binder, 2020). In Yibima campaigns by members of old student associations, backers support project initiatives because they contribute in improving the quality of lives of the students in their alma maters.…”

Section: Relationship Between Yibima and Crowdfundingsupporting

confidence: 92%

Crowdfunding System Models in the African Context: The Susu and Yibima Concepts in Ghana

Kuma¹,

Yusoff²,

Jayamana³

2021

IJAREMS

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The study examines the operations of Susu, which is a Ghanaian indigenous crowdfunding concept of fund mobilization in support of micro enterprises. The study further explores a typology of the Susu concept known as Yibima, which is an emerging concept, which has not been explored by existing literature. The key concepts of these indigenous crowdfunding models are critically considered and the study is conducted using qualitative research method. The study presents an inductive approach from data samples using Grounded Theory to develop a theoretical framework for the study. There was a constant comparison of analyzed data, grounded theory coding, observation and personal experience to come out with a theoretical view that Susu bears similarities with crowdfunding and that Yibima is a typology of Susu that has not been explored by other scholars. This assertion is reinforced by the application of inductive reasoning based on interview data. The findings, therefore, reveal that during Yibima campaigns, project initiators make a general appeal to the public (crowd) and these campaigns are launched on social media platforms and funds raised from such campaigns could be used as startup capital for business ventures or for supporting community projects. Following on the reviewed of existing literature and based on Grounded Theory from analyzed data, the study put forward a theory that Susu satisfies all the conditions to be classified as a crowdfunding concept. In addition, the findings also shows that Yibima satisfies the requirements to be a typology of the Susu as a concept.

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Section: Relationship Between Yibima and Crowdfundingsupporting

confidence: 92%

Crowdfunding System Models in the African Context: The Susu and Yibima Concepts in Ghana

Kuma¹,

Yusoff²,

Jayamana³

2021

IJAREMS

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“…Our findings are, however, good news for agri-food entrepreneurs who can seize competitive advantages by presenting themselves as greener than competing projects. Because our results suggest that backers perceive pro-social and pro-environmental entrepreneurial projects differently, we follow Calic and Mosakowski (2016) and Nielsen and Binder (2020), who distinguish between social and environmental-oriented campaigns and identified different pledging behaviour, and assert that social and environmental entrepreneurs must develop different message framing and green emphasis strategies to increase their funding chances.…”

Section: Discussionmentioning

confidence: 70%

“…In these campaigns, pro-social aims and pro-environmental aims are combined, while for climate preservation and clean energy projects, environmental aims command the primary focus. According to the product values categorisation proposed by Nielsen and Binder (2020), agri-food campaigns focus on both the benefits of a given product in terms of its social utility (e.g. good labour conditions, the health of the local economy) and the benefits of the product in terms of its environmental impact; meanwhile, climate preservation and clean energy projects focus exclusively on environmental utility (e.g.…”

Section: Discussionmentioning

confidence: 99%

Greening crowdfunding campaigns: an investigation of message framing and effective communication strategies for funding success

Rossolini

Pedrazzoli

Ronconi

2021

IJBM

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PurposeRecognising the growing importance of environmental and sustainable activities and the role of communication strategies in soliciting their financing, this work investigates the influence of message framing, green emphasis and quantitative information on the probability of green crowdfunding campaigns' success.Design/methodology/approachThis analysis is based on crowdfunding campaigns published between 2015 and 2020 on the Indiegogo platform in the category “Community projects – Environment”. The study develops an in-depth qualitative content analysis of the projects before performing an empirical examination to determine funding causes.FindingsCommunication strategies (message framing, green emphasis and quantitative goals) affect funding success. However, project category moderates the impact of message framing and green emphasis on campaign success. While positive framing increases agri-food campaign success, negative framing is more effective for clean energy and climate preservation projects. Moreover, indication of a quantitative goal and a marked green emphasis in a project's presentation increase campaign success, but a too marked green emphasis is only effective for agri-food projects.Practical implicationsGreen entrepreneurs and campaign managers must work carefully on their projects' communication, accounting for the type of product proposed, emphasising green components in its description and utilising quantitative information to present future goals. These strategies maximise backers' responses and enable entrepreneurs to obtain funding. The authors’ findings may be extended to other contexts, including the banking sector, to craft effective communication strategies for green financial products.Originality/valueBy applying framing theory in a new context (i.e. the online financing of green entrepreneurs), this study identifies new campaign success determinants and provides evidence for the moderating role of project category. Furthermore, the study highlights the need to develop different communication strategies for social and environmental-oriented projects.

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“…While crowdfunding research has provided a clear picture for intrinsically motivated backers in the prosocial microlending context (Galak et al 2011;Allison et al 2015) and extrinsically motivated investors in equity crowdfunding (Ahlers et al 2015;Kleinert et al 2020), the picture is more blurred in reward crowdfunding. The evidence is inconclusive with several studies pointing to extrinsic financial motives of backers (Lin et al 2014;Cholakova and Clarysse 2015), while other studies point to intrinsic motivations such as help others or become part of a community (Gerber et al 2012;Kuppuswamy and Bayus 2017;Nielsen and Binder 2020). Our study introduces a new approach in that we study the central element of SDT and reward crowdfunding, that is, rewards that appeal to the intrinsic and extrinsic motivation of individuals (Deci et al 1999).…”

Section: Theoretical and Practical Contributionsmentioning

confidence: 88%

“…Some studies find that backers are extrinsically motivated to engage in reward crowdfunding and pledge to pre-order products or to collect rewards (Gerber et al 2012;Lin et al 2014;Cholakova and Clarysse 2015). Other studies point to latent intrinsic backer motives such as altruism, the desire to have an impact on the project success or to be part of a community (Gerber et al 2012;André et al 2017; Kuppuswamy and Bayus 2017;Nielsen and Binder 2020). While previous research has considerably advanced our knowledge on backer motivation, the literature has not distinguished between different backer communities.…”

Section: Introductionmentioning

confidence: 99%

Crowdfunding cultural and commercial entrepreneurs: an empirical study on motivation in distinct backer communities

Bürger

Kleinert

2020

Small Bus Econ

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Drawing on self-determination theory (SDT), this study examines differences in the motivation of backers to support cultural and commercial entrepreneurs through reward crowdfunding. We propose that backers of commercial campaigns are a community of early-customers motivated by the prospects of attractive product offerings, while backers of cultural projects constitute a distinct community motivated to support capital-constrained cultural entrepreneurs and connect with like-minded individuals. We use data from the largest German crowdfunding platform, Startnext, and analyze 2334 rewards from 225 cultural and commercial projects. Our results provide support for our hypotheses: Rewards involving price discounts matter particularly for backers of commercial projects and rewards that engage backers with their community matter more for cultural backers. Surprisingly, however, backers of cultural projects are not altruistic; they are no more likely than commercial backers to support campaigns selflessly in response to symbolic rewards.

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I Am What I Pledge: The Importance of Value Alignment for Mobilizing Backers in Reward-Based Crowdfunding

Cited by 47 publications

References 99 publications

Crowdfunding System Models in the African Context: The Susu and Yibima Concepts in Ghana

Crowdfunding System Models in the African Context: The Susu and Yibima Concepts in Ghana

Greening crowdfunding campaigns: an investigation of message framing and effective communication strategies for funding success

Crowdfunding cultural and commercial entrepreneurs: an empirical study on motivation in distinct backer communities

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