Thank you for being a friend: The roles of strong and weak social network ties in attracting backers to crowdfunded campaigns

Foster, Joshua

doi:10.1016/j.infoecopol.2019.100832

Cited by 15 publications

(20 citation statements)

References 30 publications

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“…This domain is located on the x-axis, which indicates the growing internal links and considerable connection with other research domains. This domain focuses particularly on the crowdfunding topic; some exemplary studies are Cumming et al (2019b), Foster (2019), Hervé et al (2019), Vismara (2019), and Miller et al (2019).…”

Section: Main Research Domainsmentioning

confidence: 99%

On the 50-Year Research Landscape of Entrepreneurial Finance: A Sign of Western Ideological Homogeneity?

Nguyen

Pham

et al. 2020

SSRN Journal

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Financing issues play essential roles in the survival and development of entrepreneurial firms. The current study, employing the bibliometric analysis of 6,903 articles from 1970 to 2019, extracted from Web of Science database, aims to provide an overview of the discipline's landscape and major scientific domains to facilitate scientific development within the field. Entrepreneurial finance is a young and growing field with exponential growth in the number of publications (with 19.54% per year) and rising collaboration tendency among authors. Journal of Business Venturing is the most prestigious journal, while Sustainability is noteworthy for its rapid contribution to the field. We also note a sign of Western ideological homogeneity from the collaboration networks and lists of top authors, institutions, and countries. Besides, using keyword co-occurrence analysis, seven major research domains are identified: "venture capital", "crowdfunding", "SMEs finance", "social entrepreneurship finance", "financial risk", "microfinance", and "human-social-financial capital". Based on these findings, we raise the concern of lacking diversity in entrepreneurial finance research and provide several recommendations for future potential research directions.

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Section: Main Research Domainsmentioning

confidence: 99%

On the 50-Year Research Landscape of Entrepreneurial Finance: A Sign of Western Ideological Homogeneity?

Nguyen

Pham

et al. 2020

SSRN Journal

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“…In the former case (keep-it-all model), the entrepreneur receives all the funds that are committed to the project, irrespective of whether the predefined funding goals are achieved or not. In the latter case (the all-or-nothing model), the entrepreneur must collect the amount defined in their funding goal as a minimum, and in case of falling short they receive nothing at all (Foster, 2019 ).…”

Section: Resultsmentioning

confidence: 99%

“…De Luca et al ( 2019 ) have identified eleven categories of benefits of crowdfunding for entrepreneurs, benefits that are associated with: obtaining financial resources (fund raising and cost management), strategy (business viability and quality of the formulated strategy), marketing (research, client relations, demand), actual operations (product design and development), human resource management (team management), supply chain management (potential partners), and personal aspects (entrepreneurial implications, such as replicating successful experiences, testing communication skills, self-affirmation, boosting confidence and motivation, moral support, etc.). In his turn, Foster ( 2019 ) synthesized five reasons why entrepreneurs find crowdfunding attractive: (1) it allows them to finance new projects, keeping their equity capital and avoiding debt; (2) they create a preliminary market, by attracting clients before production is completed; (3) getting their clients engaged in a unique manner, by creating a conversation around the product or service, which can result in obtaining valuable feedback on design and functions, which does not happen in the case of traditional forms of financing; (4) reducing the negative impact of implicit biases associated with underrepresented entrepreneurs; (5) it allows for efficient use of the entrepreneurs' social networks in an inexpensive manner. Crowdfunding is sometimes the only means of financing start-ups, given that mainstream sponsors such as banks and venture capitalists generally seek projects that are more mature and entail lower levels of risk, and are seldom willing to give a change to inexperienced entrepreneurs or to products having uncertain chances of success (Song et al, 2019 ), particularly given that start-ups financed via crowdfunding platforms are often underdeveloped at the time of their initial presentation.…”

Section: Introductionmentioning

confidence: 99%

Psychological Determinants of Investor Motivation in Social Media-Based Crowdfunding Projects: A Systematic Review

et al. 2020

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Background: Using the power of Internet, crowdfunding platforms are currently changing the traditional landscape of fundraising. Social media-based IT platforms in particular are bringing the creators of crowdfunding projects closer than ever to potential investors. A large variety of factors function as determinants of individuals' intention to participate in crowdfunding and have an intertwined impact on funding as the ultimate project goal.Objectives: For a better understanding of investor behavior in social media-based crowdfunding projects, this paper covers identifying, analyzing, and classifying general and specific factors of investor motivation, based on the literature in the field.The main focus is the relationship between the affordances provided by social media-based crowdfunding platforms and the psychological determinants of investor motivation in innovative start-up projects.Methods: Using IEEE Explore, Clarivate Web of Science, ScienceDirect, and Scopus, we conducted a systematic review of the existing research on the emerging role of crowdfunding as a disruptive technology in financing the start-up innovative projects. The paper explores the main determinants of investor motivation and aims to streamline the success factors in crowdfunding campaigns.Results: A total of 1,216 publications were identified after searching the aforementioned databases and, upon refining the results, 515 articles were considered for the final sample. After reading the titles and abstracts, the sample was reduced to 78 articles that were read in-depth and synthesized in accordance with the defined research questions. The selected articles were clustered into three main categories: general studies, determinants of investor behavior, and success factors.Conclusions: In the new global economy, crowdfunding platforms have become the nexus between the emerging creators of innovative products and services and the necessary funding sources. This connection is possible via a cumulative collection of contributions from multiple investors recruited from the audience of the selected platform, without time or space constraints. However, the determinants of the investment decision are very different in the case of social media-based crowdfunding platforms compared to determinants in the mainstream environment. This paper surveys these motivators and reveals how platform features can be used to persuade individuals to make a financial contribution toward the success of a project.

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“…This domain is located on the y-axis, which indicates the growing external links representing connections with other research domains. This domain focuses mainly on the crowdfunding topic; some exemplary studies are Cumming et al ( 2019b ), Foster ( 2019 ), Hervé et al ( 2019 ), Vismara ( 2019 ), and Miller et al ( 2019 ). As crowdfunding is a recently developed topic and relatively transversal, the domain's internal links are weak.…”

Section: Resultsmentioning

confidence: 99%

On the social and conceptual structure of the 50-year research landscape in entrepreneurial finance

Nguyen

Pham

et al. 2020

SN Bus Econ

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In recent decades, drastic changes in global social-economic situations have led to significant shifts in the financial market for entrepreneurial firms, thus resulting in changes in entrepreneurial finance discipline. The current body of literature, despite its significant growth, has not provided an overview landscape of this research area. Consequently, this study aims to fill this gap by employing the bibliometric analysis of 6902 articles from 1970 to 2019 extracted from the Web of Science database. By doing so, this paper attempts to provide an overview of the discipline's research output, social and conceptual structure, and offer strategies facilitating the scientific development within the field. The findings indicate that entrepreneurial finance is a young and growing field with an exponential increase in the number of publications (approx. 19.75 percent per year) and rising collaboration tendency among authors. The 1991–2000 period is a crucial milestone of the field thanks to the remarkable growth and impact of studies during this period as well as simultaneously occurring historical events. We also notice a sign of Western ideological homogeneity from the collaboration networks and lists of most productive authors, institutions, and countries. Additionally, using thematic mapping, five major research domains are identified: “venture capital”, “crowdfunding”, “SMEs finance”, “social entrepreneurship finance”, “IPO and corporate governance”. Based on these findings, we raise the concern of lacking diversity in entrepreneurial finance research and propose strategies for authors, journals, and policymakers to diversify the literature.

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Thank you for being a friend: The roles of strong and weak social network ties in attracting backers to crowdfunded campaigns

Cited by 15 publications

References 30 publications

On the 50-Year Research Landscape of Entrepreneurial Finance: A Sign of Western Ideological Homogeneity?

On the 50-Year Research Landscape of Entrepreneurial Finance: A Sign of Western Ideological Homogeneity?

Psychological Determinants of Investor Motivation in Social Media-Based Crowdfunding Projects: A Systematic Review

On the social and conceptual structure of the 50-year research landscape in entrepreneurial finance

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