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

Pinkow, Felix; Emmerich, Philipp

doi:10.18267/j.cebr.263

Cited by 7 publications

(8 citation statements)

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“…Keeping in mind that overfunded projects are a subset of successful crowdfunding projects, it is essential to initially determine which factors enable crowdfunding success, as a necessary requirement for subsequent overfunding. Drawing on Spence's (1973Spence's ( , 2002 idea of the signaling theory, recent research adopted this notion in a crowdfunding setting under the assumption of information asymmetries between the project founders and the crowd (Davies & Giovannetti, 2018;Kim et al, 2016;Pinkow & Emmerich, 2021;Short et al, 2017;Vismara, 2018). In a crowdfunding setting, the project team communicates information about the quality of their idea and the abilities of the founders to the crowd, who interprets this information and sends feedback to the project team (the signaller) (Connelly et al, 2011).…”

Section: A Signaling Theory Perspective On Reward-based Crowdfundingmentioning

confidence: 99%

“…The funding goal itself has been shown to be a crucial determinant of project success, generally having a negative effect on the success rate, that is, the higher the targeted funds, the lower the probability to succeed (Beier & Wagner, 2015;Cordova et al, 2015;Koch & Siering, 2015;Mollick, 2014) and the less money is raised (Evers et al, 2012). Moreover, the level of the funding goal may even moderate the impact of the basic success factors on project success (Pinkow & Emmerich, 2021), demonstrating the central role of the funding goal. The above-mentioned factors relate to instruments made available by the crowdfunding platforms, and are considered basic quality indicators, following the argumentation by Cordova et al (2015) and Mollick (2014).…”

Section: Basic Crowdfunding Success Factorsmentioning

confidence: 99%

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The impact of common success factors on overfunding in reward-based crowdfunding: An explorative study and avenues for future research

Pinkow¹

2022

JEMI

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PURPOSE: While there is abundant literature on the key determinants of reward-based crowdfunding success, little research is dedicated to crowdfunding projects that are not only successful but receive significantly more funds than initially targeted through the defined funding goal. This study seeks to shed light on this vastly neglected topic in crowdfunding research. METHODOLOGY: Drawing on a rich dataset of 338 rewardbased crowdfunding projects, this study applied a two-step statistical analysis. First, regression analyses to determine relevant crowdfunding success factors were conducted in order to corroborate extant literature and to highlight that the data properly reflects the already identified key findings on crowdfunding success. In a second step, the very same factors were investigated for the case of overfunded projects, utilizing logistic regression analyses and a Blinder-Oaxaca Decomposition. FINDINGS: Although this study confirmed the findings of previous research considering the factors that increase the success probability of crowdfunding projects, the very same factors turned out to not explain the emergence of project overfunding. For instance, while project founders can provide updates, a higher number of different rewards, or utilize social media pages to increase the likelihood for success, these factors do not contribute to explain the phenomenon of project overfunding. IMPLICATIONS: The results of this study emphasize that in order to understand overfunding of crowdfunding projects, future research must go beyond the basic crowdfunding success factors. Building on the notion of the Two-Factor Theory, the findings suggest that the factors contributing to success can be considered hygiene factors that are required to succeed in the first place. However, these factors do not motivate the crowd to provide further funding to an already successful project. Hence the motivating factors remain yet unobserved in extant literature. In practice, this means that project teams achieving their funding goal cannot rely on the same factors that were helpful to succeed to encourage further funding from the crowd. The differentiation of hygiene and motivating factors for overfunding in reward-based crowdfunding offers rich opportunities for future research. More subjective factors, such as the individual perception of crowd members towards crowdfunding projects, are suggested to play an important role for the occurrence of project overfunding. ORIGINALITY/VALUE: By investigating project overfunding, this study addresses the research gap concerning the factors contributing to the emergence of project overfunding. There is little evidence on the characteristics of overfunded crowdfunding projects, and thus this study provides essential theoretical and empirical groundwork for future research to build upon this study’s results.

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Section: A Signaling Theory Perspective On Reward-based Crowdfundingmentioning

confidence: 99%

Section: Basic Crowdfunding Success Factorsmentioning

confidence: 99%

The impact of common success factors on overfunding in reward-based crowdfunding: An explorative study and avenues for future research

Pinkow¹

2022

JEMI

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“…They are considered effective signals as they are easily observable by potential investors and thus positively affect their participation (Block et al, 2018). In the same vein, Pinkow and Emmerich (2021) show that keeping the crowd informed by using updates is crucial for the success of a project, although they vary with the target financial goal. Based on these considerations we can formulate the following hypothesis:…”

Section: 2contribution Of the Entrepreneur's Dynamism On The Cf Platf...mentioning

confidence: 99%

Key Success Factors for Crowdfunding Operations of Entrepreneurial Project Holders

TATCHEMO

NONGNI²,

DANMOU³

et al. 2022

JEPM

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Mainly motivated by the need to improve the success rate of fundraising campaigns on crowdfunding platforms, this article aims to identify the key success factors of crowdfunding operations initiated by Cameroonian entrepreneurs. Within this framework, an empirical study was carried out on 50 project leaders operating in various sectors of activity and having conducted funding campaigns between 2017 and 2020. This sample, selected using the reasoned choice method combined with the snowball technique, was analysed using appropriate statistical tests. In this context, the first step was to test the relationship of dependence or independence between the success of a campaign and its socio-demographic characteristics through a descriptive analysis. Based on this step, the variables deemed significant were included in a proven model via binary logistic regression, which made it possible to highlight characteristics specific to projects and entrepreneurs whose fundraising campaigns were successful. Following this approach, the results obtained show that the level of education, the length of professional experience, the size of the share capital and the contribution of professional investors are positively and significantly associated with the success of a crowdfunding operation in Cameroon. These results reinforce the theory in the sense that they teach us that certain indicators related to the project holders as well as the project itself can constitute positive signals for the target audience. Therefore, these entrepreneurs need to optimise on these characteristics in order to maximise the probability of success of their fundraising campaigns.

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Section: Basic Crowdfunding Success Factorsmentioning

confidence: 99%

Untitled

2022

JEMI

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The JOURNAL OF ENTREPRENEURSHIP, MANAGEMENT AND INNOVATION is an interdisciplinary, double blind-reviewed journal, emphasizing theoretical and empirical articles in entrepreneurship, management, innovation and related fields. The journal is published both in printed form and on-line at www.jemi.edu.pl. THE ENTREPRENEURSHIP AREA OF THE JOURNALThe entrepreneurship area of the journal covers the three major topics: 1) venture creation and small business, 2) the impact of entrepreneurship on economic growth including local and regional development, and 3) entrepreneurial attitudes and motives. We invite original papers of theoretical and empirical nature, rooted in the disciplines of economics, management, sociology, political science, and psychology. The interdisciplinary research is encouraged to assure a comprehensive approach to the topics discussed and to advance both theory and practice. THE MANAGEMENT AREA OF THE JOURNALManagement, as a thematic scope of the journal, focuses on theoretical and empirical considerations of various areas, such as: strategic management, operation or production management, human resource management, information and management, contemporary management problems, new methods and management tools, new forms of organization and management, new threats in management, or new challenges in the organization's environment. THE INNOVATION AREA OF THE JOURNALThe innovation area of the Journal's focus will emphasize a broad range of topics and approaches, including (but not limited to): 1) role of private and public sector in development and diffusion of innovations, 2) product, process and business model innovations, 3) profiles of innovative products, structures and processes, aimed at improving management practice and providing inspiration for entrepreneurs, 4) comparative analyses of national, regional policy or sector issues, such as R&D trends, patents, citations etc., 5) theoretical work on economic, organizational and scientific aspects of innovation, encouraging the search for inspirations from various disciplines, including natural sciences, arts and humanities. THE ENTREPRENEURIAL FINANCE AREA OF THE JOURNALThe entrepreneur or entrepreneurial firm, the institutions providing finance to the entrepreneurs, and the different types of financial sources used by the entrepreneurial firms or investors. Among the areas of our special interests might be enumerated: accounting and corporate finance, financial market as a background for SME development, entrepreneurial finance, regulatory and supervisory aspects related to corporate finance.

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

Cited by 7 publications

References 64 publications

The impact of common success factors on overfunding in reward-based crowdfunding: An explorative study and avenues for future research

The impact of common success factors on overfunding in reward-based crowdfunding: An explorative study and avenues for future research

Key Success Factors for Crowdfunding Operations of Entrepreneurial Project Holders

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