What factor is essential in successful crowdfunding: a MULTIMOORA-EDAS approach to explore factors that influence the success of crowdfunding campaigns
Abstract
Purpose
Due to the high rate of failure of most crowdfunding projects, knowing the most essential factor to obtain funding success on the crowdfunding platform is of great importance for fund seekers on the crowdfunding platform. The purpose of this study is to explore crowdfunding success factors to know the most essential success factor for stakeholders of the crowdfunding platform to make the best decision when seeking funds on the crowdfunding platform. This study identified and ranked crowdfunding success factors for stakeholders of crowdfunding platforms. Sixteen factors were identified and categorized under five broad headings. These were; project ideas, target capital, track records, geographical proximity and equity.
Design/methodology/approach
To rank the identified crowdfunding success factors and subfactors, this study used the Multi-Objective Optimization Based on Ratio Analysis (MULTIMOORA) integrated with the Evaluation based on Distance from Average Solutions (EDAS).
Findings
Target capital ranked first among the five categories—while duration involved in raising funds ranked first among the sixteen subfactors. An approach for analyzing how each success factor enhances a crowdfunding campaign was developed in this study. This study provides valuable insight to fund seekers on the crowdfunding platform on how funding success can be achieved by knowing which factor to consider essential when seeking funds on the crowdfunding platform.
Originality/value
This is the first study to explore crowdfunding success factors using the MULTIMOORA-EDAS method. The use of this method will help fund seekers on the crowdfunding platform to know which crowdfunding success factor is essential, thereby aiding fund seekers to make the best decision when seeking funds on the crowdfunding platform. Also, this study is particularly helpful for business owners, platform operators and policymakers when deciding how to allocate resources, plan campaigns and implement regulations.
Keywords
Acknowledgements
The authors are grateful to all those who contributed to making this work a success, especially Dr Adjei Darko Peter. The authors are also thankful to the stakeholders of the selected crowdfunding platform for their support and information provided concerning crowdfunding success factors.
Since submission of this article, the following author(s) have updated their affiliations: Isaac Edem Djimesah is at the Chengdu University of Technology, Chengdu, China.
Citation
Djimesah, I.E., Zhao, H., Okine, A.N.D., Duah, E., Kissi Mireku, K. and Adjei Budu, K.W. (2023), "What factor is essential in successful crowdfunding: a MULTIMOORA-EDAS approach to explore factors that influence the success of crowdfunding campaigns", Kybernetes, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/K-05-2023-0893
Publisher
:Emerald Publishing Limited
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