The Promise of Reward Crowdfunding

Urtiaga, María Gutiérrez; Lacave, María Isabel Sáez

doi:10.2139/ssrn.3096753

Cited by 2 publications

(2 citation statements)

References 28 publications

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“…Active backers who engage in co-design may have negative consequences for the venture afterwards. Given this result, in line with prior studies (Belleflamme et al, 2014; Gutiérrez Urtiaga and Sáez Lacave, 2018), our work raises the need for modelling crowdfunding as a two-period process where the first step refers to funding collection and the second describes the entrepreneurial stage. This approach would help to consider crowdfunding side effects on subsequent entrepreneurial performance.…”

Section: Resultssupporting

confidence: 76%

Active backers, product commercialisation and product quality after a crowdfunding campaign: A comparison between first-time and repeated entrepreneurs

Butticè

Noonan

2019

International Small Business Journal

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Building on the theories of social capital and social obligation, we study how the attraction of active backers, that is, backers who participate in the co-design of the product is associated with product commercialisation and product quality after a reward-based crowdfunding campaign. We argue theoretically and show empirically that this association varies when the entrepreneur’s experience in conducting crowdfunding campaign is taken into account. Through a quantitative analysis of 1406 board games campaigns posted on Kickstarter, we show that for entrepreneurs who are novice to crowdfunding, attracting a large crowd of active backers increases the chances to commercialise the product after the campaign, while it reduces its final quality. On the contrary, for entrepreneurs who already relied on crowdfunding in the past, the attraction of a large crowd of active backers is associated with increasing product quality.

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Section: Resultssupporting

confidence: 76%

Active backers, product commercialisation and product quality after a crowdfunding campaign: A comparison between first-time and repeated entrepreneurs

Butticè

Noonan

2019

International Small Business Journal

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“…Different from e-commerce platforms where a variety of optional quality signals are provided for consumers to judge the authenticity and quality of products, fewer signals are available on crowdfunding platforms. So creators are in the position to behave opportunistically while playing such a one-shot game of crowdfunding (Gutierrez-Urtiaga and Saez-Lacave, 2018; Mavlanova et al , 2012), and multiple sourced information helps reduce the opportunistic manners of projects’ creators. On the other hand, we also believe that there may exist substitution effects among different types of signals as signals may have the same effects, and similar signals have a similar function.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Exploring the dynamic influences and interaction effects of signals on backers’ investment in the crowdfunding market

Song

et al. 2019

ITP

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Purpose As a standard source of capital for entrepreneurs, crowdfunding has recently gained wide attention in business and academia. With scientific endorsement, some research is conducted to explore the antecedents of online crowdfunding success. The factors that can influence the backers’ investment which is the key to success are information from prior backers’ and creators’ behaviors. Based on the signaling theory, the purpose of this paper is to systematically investigate the dynamic influences and interaction effects of signals with different forms (action-based or opinion-based signals) and sources (creator-sourced or backer-sourced signals) on backers’ investment behaviors over a project-funding cycle. Design/methodology/approach A panel data set of 3,010 projects with 640,625 transaction records from April 28, 2013 to September 31, 2017 is collected from a famous online crowdfunding platform – Zhongchou.cn in China and the negative binomial panel data model with fixed effect is used to obtain our empirical results. Findings The findings demonstrate that the work of different signals is significantly effective at the early stage of a project and decreases with time. Furthermore, our results show that there are both synergistic effect and substitution effect among different signals. Specifically, the direction of interaction effect depends on the forms of signals and the backers’ sensitivity toward that signal, and the interaction effects are also dynamic. Originality/value This paper has shed light on the roles of different signal types and their interactions in influencing funding behavior over a project-funding cycle, enriched the literature on crowdfunding and provided both theoretical and practical implications.

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The Promise of Reward Crowdfunding

Cited by 2 publications

References 28 publications

Active backers, product commercialisation and product quality after a crowdfunding campaign: A comparison between first-time and repeated entrepreneurs

Active backers, product commercialisation and product quality after a crowdfunding campaign: A comparison between first-time and repeated entrepreneurs

Exploring the dynamic influences and interaction effects of signals on backers’ investment in the crowdfunding market

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