Investigating investment decisions in equity crowdfunding: The role of projects' intellectual capital

Troise, Ciro; Matricano, Diego; Sorrentino, Mario; Candelo, Elena

doi:10.1016/j.emj.2021.07.006

Cited by 33 publications

(28 citation statements)

References 91 publications

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“…Theoretically, this research completes the literature on signaling in equity crowdfunding [6,11] and proposes a unique MCDA assessment method for signaling in sharia-based ventures. To the best of the authors' knowledge, this is the first time the MCDA has been used to examine sharia-based projects.…”

Section: Resultssupporting

confidence: 55%

“…To identify Sharia crowdfunding, the tool of the equity crowdfunding concept must be aligned with Islamic principles and Sharia compliance. For the basic equity crowdfunding, we adopt the tool that already summarizes the vital aspect of equity crowdfunding assessment, including human capital, structured capital, and relational capital, to propose the funding success [11]. Even though Muslims are regarded as the pioneers of profit and loss-sharing investments in businesses via contractual agreements, which predate the concept of stock markets, the current form of the stock market prevents the devout among them from seeking economic benefits from it due to several provisions of Islamic law [12].…”

Section: Introductionmentioning

confidence: 99%

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A Proposed Assessment Tool for Sharia-Compliant Equity Crowdfunding Projects Utilizing Topsis

Pambudi¹,

Nurrosyidah²,

Justitia³

et al. 2022

taiwanproceeding

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On the market, the number of newly founded fintech companies that involve sharia-compliant businesses has increased recently, one of them being the sharia-crowdfunding company. The company targets countries with large Muslim populations, such as Indonesia and Malaysia. Since the sharia compliance is unique, and thus it influences decision-making in a business. Therefore, we are driven to propose and develop an assessment tool to assist the investment signaling process for the sharia-compliant equity crowdfunding projects on Platform X. Platform X is one of the pioneers of real estate Islamic crowdfunding platforms investing in sharia-compliant real estate projects in Southeast Asia's emerging countries. The firm must examine new projects locally for each newly created branch country as the firm aims to open new branches in some predominantly Muslim countries. However, each newly founded branch country lacks a mature and uniform assessment tool for sharia-based projects, resulting in glaring problems in the 'portability' and time-consuming problem of assessing the projects. Therefore, this research provides a technique for assessing sharia-equity crowd fundraising decisions using a multi-criteria decision analysis (MCDA), namely TOPSIS. We combine the concept of equity crowdfunding, Islamic principles, and Sharia compliance to develop a tailored assessment tool for sharia-based projects. As a result, we present both theoretical and managerial implications, and we find that the assessment tool is robust as the evaluation result for the portability aspect and the fast computational time were successfully examined through a simple experiment.

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Section: Resultssupporting

confidence: 55%

Section: Introductionmentioning

confidence: 99%

A Proposed Assessment Tool for Sharia-Compliant Equity Crowdfunding Projects Utilizing Topsis

Pambudi¹,

Nurrosyidah²,

Justitia³

et al. 2022

taiwanproceeding

View full text Add to dashboard Cite

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“…Until recently, the cross-national boundaries of these companies were still mainly focused on their home regions (D’Angelo et al, 2013 ) and, traditionally, their unique and consolidated presence on the worldwide market lay in the so-called “Made in Italy” products (Festa et al, 2020 ). Italian SMEs have some typical features (e.g., family-oriented approach to several activities such as the networking and the management of human resources) (D’Angelo et al, 2013 ), however they are showing a great propensity to digitalization and proactively adopt new digital technologies (Cassetta et al, 2020 ), including crowdfunding platforms (Troise et al, 2021a ; Troise and Tani, 2021 ). Hence, the study of the internationalization of Italian SMEs by leveraging the potential of crowdfunding represents an important research opportunity.…”

Section: Methodsmentioning

confidence: 99%

“…Crowdfunding platforms favor the connection for SMEs with crowd-investors from various countries (Maula & Lukkarinen, 2020 ) and reduce the traditional geographic constraints (Mollick, 2014 ). The added-value of crowdfunding platforms, in this sense, is that they connect investors with companies, overcoming these limits; at the same time, these platforms act as intermediaries, and the companies make online calls to raise funds, although the virtual environment limits direct interactions between the parties (Troise et al, 2021a ).…”

Section: Literature Review and Theoretical Considerationsmentioning

confidence: 99%

“…More and more SMEs use crowdfunding to raise funds and overcome the unavailability of traditional financing (Giudici & Rossi-Lamastra, 2018 ; Troise et al, 2021a ). Generally, SMEs are known to be less equipped than large companies to address the challenges and barriers to their internationalization discussed above.…”

Section: Literature Review and Theoretical Considerationsmentioning

confidence: 99%

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How Can SMEs Use Crowdfunding Platforms to Internationalize? The Role of Equity and Reward Crowdfunding

et al. 2022

Self Cite

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Despite the exponential growth of crowdfunding in recent years, research on the role it plays in business internationalization is still embryonal. Building on the Resource Based View (RBV) and Knowledge Based View (KBV), this study explores how SMEs can use equity crowdfunding (ECF) and reward crowdfunding (RCF) to internationalize and the related potential limitations. Using an inductive qualitative research design, based on multiple case studies of Italian SMEs, our study showed that ECF and RCF models help SMEs in acquiring the financial resources needed to internationalize and, at the same time, offer significant added value to their internationalization. Our findings support the idea that ECF and RCF play a key role in helping companies to overcome their resource limitations in regard to internationalization, not only in terms of the provision of financial resources but, above all, by compensating for any lack of knowledge on aspects relevant to the internationalization process. Furthermore, our results show the limitations of SMEs use of crowdfunding in order to internationalize (i.e., a lack of ad hoc e-commerce policies in relation to equity crowdfunding and to the regulation of the pre-ordering mechanism in the reward model). This paper concludes by discussing the theoretical and managerial contributions to the international business domain, and highlighting fruitful avenues for future studies.

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Entrepreneurial Teams in Equity Crowdfunding

Troise,

Tani

2024

The Palgrave Encyclopedia of Private Equity

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Investigating investment decisions in equity crowdfunding: The role of projects' intellectual capital

Cited by 33 publications

References 91 publications

A Proposed Assessment Tool for Sharia-Compliant Equity Crowdfunding Projects Utilizing Topsis

A Proposed Assessment Tool for Sharia-Compliant Equity Crowdfunding Projects Utilizing Topsis

How Can SMEs Use Crowdfunding Platforms to Internationalize? The Role of Equity and Reward Crowdfunding

Entrepreneurial Teams in Equity Crowdfunding

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