Resolving information asymmetries in financing new product development: The case of reward-based crowdfunding

Sewaid, Ahmed; García‐Cestona, Miguel A.; Silaghi, Florina

doi:10.1016/j.respol.2021.104345

Cited by 25 publications

(18 citation statements)

References 71 publications

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“…Regarding previous failure, previous studies have suggested that serial crowdfunders exhibit cyclical learning, such that success predicts under‐performance while under‐performance contains the seeds of future over‐performance (Yang and Hahn, 2015). We argue that even though serial crowdfunders’ fundraising performance exhibits a cycling trajectory (Sewaid, Garcia‐Cestona and Silaghi, 2021), this is not explained by cyclical learning. Furthermore, we also consider that learning from failure is not a straightforward process and that entrepreneurs need to acknowledge the reasons for failure in order to learn.…”

Section: Discussionmentioning

confidence: 79%

“…Constructing a campaign involves taking decisions regarding many factors: the rewards offered (Colombo, Franzoni and Rossi‐Lamastra, 2015; Du, Li and Wang, 2018; Sewaid, Garcia‐Cestona and Silaghi, 2021), prices (Hu, Li and Shi, 2015; Schwienbacher, 2018), pitch style (Anglin et al ., 2018b; Johan and Zhang, 2020; Parhankangas and Renko, 2017) and media content (Courtney, Dutta and Li, 2017; Scheaf et al ., 2018). It seems natural to expect that prior campaign launching experience might help when developing the current campaign (Butticè, Colombo and Wright, 2017; Sewaid, Parker and Kaakeh, 2021; Yang and Hahn, 2015).…”

Section: Theoretical Developmentmentioning

confidence: 99%

“…Additional control variables in our analysis are the Duration of the campaign, the Category to which the project belongs and the Year of launch. Finally, due to the right-skewed distribution and the zero values observed in some of the continuous variables in our control, we treat these variables using the inverse hyperbolic sine transformation which is defined at zero values (Sewaid, Garcia-Cestona and Silaghi, 2021).…”

Section: Control Variablesmentioning

confidence: 99%

See 2 more Smart Citations

Do Learning Benefits Accrue Equally Over Successive Fundraising Attempts? Strategic Change and the Moderating Role of Experience

Sewaid

García‐Cestona

Silaghi

2021

British J of Management

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In the management literature, the role of learning from experience and its effect on performance has been highlighted. However, little is known about the effects of strategic change on performance due to aspects pertaining to the mobility of learning. Building on different learning theories, we theorize about the effect of strategic change on performance when: (i) strategic change does not require the mobilizing of resources; (ii) strategic change does not involve exposure to a new set of stakeholders; and (iii) time commitment to previous strategies is low. We confront our contentions with data on serial campaign launchers in crowdfunding. The data indicates that changing industry adversely affects fundraising performance due to the specificity of a portion of the accrued learning. This adverse effect is mitigated by venture launching experience and exacerbated following failure. Implications for practitioners and scholars are discussed.

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Section: Discussionmentioning

confidence: 79%

Section: Theoretical Developmentmentioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 99%

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Do Learning Benefits Accrue Equally Over Successive Fundraising Attempts? Strategic Change and the Moderating Role of Experience

Sewaid

García‐Cestona

Silaghi

2021

British J of Management

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“…In economic behavior research, most evidence points to significant differences in the levels of risk perceptions among men and women, with the latter exhibiting greater degrees of risk aversion (Charness & Gneezy, 2012;Croson & Gneezy, 2009;Powell & Ansic, 1997). Unsurprisingly, this pattern is also consistent in studies specifically examining gender differences in investment behavior (Serwaah & Shneor, 2021), which is subjected to risks arising from substantial information asymmetries between fundraisers and investors (Glücksman, 2020;Lu et al, 2021;Sewaid et al, 2021). Similarly, research in the context of crowdfunding shows that women tend to invest in lower risk assets (Hervé et al, 2019), as well as in equity campaigns presenting financial indicators congruent with signals of lower risk investments (Cicchiello & Kazemikhasragh, 2022;Mohammadi & Shafi, 2018).…”

Section: Perceived Riskmentioning

confidence: 79%

Does Gender Equality Matter? – Examining Antecedents of Crowdfunding Backers’ Intentions in a Gender Equal Society

Serwaah,

Shneor

2023

Journal of Alternative Finance

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Despite promises of financial democracy, studies find differences between males and females in both the scale of their crowdfunding backing behavior and the factors impacting it. These are often explained by social feminist theory claiming that gender differences arise from dissimilar life experiences or socialization. In the current study we identify the most pervasive of gender differences and examine whether they apply in a relatively more gender equal society, where dissimilar life experiences or socialization should be minimal. Here, crowdfunding is assumed to remove traditional structural and technical barriers, while gender equality is assumed to remove socio-normative barriers for women’s engagement in venture funding. Accordingly, we test related hypotheses based on survey data collected from users of a reward crowdfunding platform in Finland, a society ranking high on gender equality. For both males and females, findings show that self-efficacy has a positive association with intentions; and that risk perceptions and susceptibility to social influence are not associated with intentions. Homophily is positively associated with intentions in females only, while pro-social orientation is positively associated with intentions in males only. Intentions are positively associated with behavior in both genders, and that effects on behavior mediated by intentions follow the same patterns.

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“…Moreover, consumers consider their purchases so that they are spent unwisely as consumers want lower prices. The lowest price is sometimes used as a strategy to trick and persuade consumers to buy, which boosts sales (Gensler et al, 2017;Lamiraud & Stadelmann, 2020;Sewaid et al, 2021). The lower price is used as a call for consumers to buy.…”

Section: Resultsmentioning

confidence: 99%

Fruit sale strategy with the lowest price sorakan (cheering) in the view of Fiqh Muamalah

Arianti

Asmadia

Leli³

2022

LJIH

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Cheering the smallest price of several piles of fruit prices is a fruit-selling strategy to get more consumers. This study aims to understand the description of the smallest price cheers on the fruit sales strategy against the view of fiqh muamalah. What attracts buyers so that they decide to buy and how their interest is raised by hearing price cheers. This is field research conducted in Batusangkar Market. The research employed qualitative descriptive research methods and the research data were obtained from sellers and fruit buyers who shout the smallest price cheer. Data retrieval techniques used in-depth interviews and direct observation of buyers. Interviews were conducted face-to-face with the informants until the same information was obtained. The results show that the strategy of cheering the lowest price from several prices based on piles of fruit quality serves as a driving force and attracts consumers. This strategy is closer to bay' najasy which can drive buyers to buy their merchandise. Therefore, buyers or sellers must ensure that the price they are shouting represents the fruit piles that are visible. When a buyer approaches the place of merchandise, he/she could clearly see the goods being traded.

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Resolving information asymmetries in financing new product development: The case of reward-based crowdfunding

Cited by 25 publications

References 71 publications

Do Learning Benefits Accrue Equally Over Successive Fundraising Attempts? Strategic Change and the Moderating Role of Experience

Do Learning Benefits Accrue Equally Over Successive Fundraising Attempts? Strategic Change and the Moderating Role of Experience

Does Gender Equality Matter? – Examining Antecedents of Crowdfunding Backers’ Intentions in a Gender Equal Society

Fruit sale strategy with the lowest price sorakan (cheering) in the view of Fiqh Muamalah

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