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Book part
Publication date: 20 August 2018

Abstract

Details

The Return of Trust? Institutions and the Public after the Icelandic Financial Crisis
Type: Book
ISBN: 978-1-78743-348-9

Open Access
Article
Publication date: 10 October 2022

Francesco James Mazzocchini and Caterina Lucarelli

This paper aims to provide a multidisciplinary framework that allows an integrated understanding of reasons of success or failure in equity crowdfunding (ECF), a Fintech digital…

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Abstract

Purpose

This paper aims to provide a multidisciplinary framework that allows an integrated understanding of reasons of success or failure in equity crowdfunding (ECF), a Fintech digital innovation of the traditional entrepreneurial finance, defining a future research agenda.

Design/methodology/approach

A systematic literature review (SLR) has been conducted on 127 documents extracted from two multidisciplinary repositories (Elsevier’s Scopus and Clarivate Analytics Web of Science) for the period between 2015 and early 2022. After a systematized series of inclusion and exclusion criteria, in line with the objectives and conceptual boundaries, a final list of 32 peer-reviewed articles written in English was analyzed by the authors through a meta-synthesis and thematic analysis to identify the key themes and dominant concepts.

Findings

Results show that the body of literature is recent and fast growing. The proposed integrative framework of existing research indicates that the outcome of an ECF campaign is related to signals conveyed by entrepreneurs in the form of hard information (firm characteristics, financial information, business characteristics and project description) and soft information (intellectual capital, human capital, social capital and social media network), catalyzed by digital media that facilitate also personal interactions between entrepreneurs and investors. Similarly, external factors (investors and campaign characteristics, with the fundamental role of ECF platform managers in building trust between entrepreneurs and investors) allow for the alleviation of information asymmetries. The present study sheds light on which signal mechanisms are decisive in improving the outcome, taking into consideration various disciplines which follow different but complementary perspectives.

Practical implications

Entrepreneurs should adapt to the transition toward the digital era, exploiting alternative financial instruments and learning effective signaling strategies, within a large variety of skills requested. Platform managers can obtain more focused information on selected entrepreneurial projects more efficiently.

Originality/value

Although it is fast-growing, the field of research is very recent, still fragmented and limited to the perspective/discipline followed. This SLR is, to the best of the authors’ knowledge, the first multidisciplinary and integrative analysis of reasons that motivates success, or failure, of an equity-based crowdfunding campaign. The digital nature of ECF encourages future research to move toward more pioneering and unconventional theories and research methods. Hence, the authors add to the existing literature by proposing future patterns of research based on an integration of highly technological skills and behavioral/psychological approaches.

Details

Management Research Review, vol. 46 no. 6
Type: Research Article
ISSN: 2040-8269

Keywords

Open Access
Article
Publication date: 30 January 2023

Pau Sendra-Pons, Alicia Mas-Tur and Dolores Garzon

This empirical study uses herd behavior model to explore the role of anchor investors in ensuring fundraising success and overfunding of crowdfunded ventures.

1038

Abstract

Purpose

This empirical study uses herd behavior model to explore the role of anchor investors in ensuring fundraising success and overfunding of crowdfunded ventures.

Design/methodology/approach

Qualitative comparative analysis (QCA) is applied to find the configurational patterns describing how anchor investors' information disclosure leads to successful financing and overfunding.

Findings

Even when the anchor investor's resume is not detailed or the anchor investor has little experience in entrepreneurial investment, success or overfunding can be achieved, provided the anchor investor is a corporation rather than an individual. For individual anchor investors, a detailed resume matters. Overfunding can be achieved even when an individual anchor investor makes a small relative investment, if this small relative investment is compensated for by a detailed resume. Experience in entrepreneurial investment is crucial when individual anchor investors have few previous investments. Regardless of the anchor investor's identity, investment in absolute terms is crucial for crowdfunding success when experience in entrepreneurial investment is low. Such experience must be extensive if the anchor investor's resume is not detailed.

Practical implications

Both entrepreneurs and crowdfunding platforms can benefit from the findings in relation to the design of campaigns that use anchor investors' informational cues to achieve success and overfunding.

Originality/value

The study examines the importance of anchor investors' information disclosure in digital crowdfunding environments, differentiating between individual and corporate anchor investors.

研究目的

本實證研究使用羊群行為模型, 去探究錨定投資者在確保眾籌活動可達成功籌資以及過多籌資方面所扮演的角色。

研究設計/方法/理念

研究人員以定性比較分析法、去找出描述錨定投資者的資訊公佈如何帶來成功融資和過多籌資的配置模式。

研究結果

研究結果顯示、只要錨定投資者不是個人、而是一間公司, 則即使他們的履歷不詳盡, 又或他們對企業投資的經驗淺薄, 也無礙籌資或過多籌資的成功完成。如錨定投資者為個人, 則詳盡的履歷會影響甚鉅。即使個人錨定投資者相對而言參與少量的投資, 但若這少量的投資給他們詳盡的履歷所彌補的話, 則過多籌資仍可成功達到。若個別錨定投資者原有的投資量不多的話, 則企業投資的經驗至為重要。不管錨定投資者的身份是什麼, 若他們對企業投資所持的經驗淺薄, 則按絕對值計算的投資額對眾籌能否成功至為重要。若錨定投資者的履歷不詳盡, 則這種經驗必須是豐富廣泛的。

研究的原創性/價值

本研究區分了個人錨定投資者與公司錨定投資者兩者對眾籌的影響, 就此而研究在數碼的眾籌環境裡, 錨定投資者信息公佈的重要性。

實務方面的啟示

研究結果可幫助企業家和群眾募資平台去設計可使用錨定投資者的資訊提示來達至成功眾籌和過多籌資的活動。

Details

European Journal of Management and Business Economics, vol. 33 no. 1
Type: Research Article
ISSN: 2444-8451

Keywords

Open Access
Article
Publication date: 3 November 2022

Rayan Faisal A. Makki and Stefan Van Hemmen

The purpose of this study is to investigate the initial investment's motivations and study the reinvesting motivations. The results revealed differences in reinvestors'…

Abstract

Purpose

The purpose of this study is to investigate the initial investment's motivations and study the reinvesting motivations. The results revealed differences in reinvestors' motivations of reinvestors in both winning and losing situations. Specifically, financial return and excitement motives were supported for win and loss situations, while recognition was supported for loss and pleasure in win situations.

Design/methodology/approach

The impact of intrinsic and extrinsic motivations on reinvestors was tested using the structural equation model. Furthermore, the framework was analysed with survey data from a total of 355 digital workers from Amazon Mechanical Turk, one of the world's largest crowdsourcing platforms.

Findings

The results indicate that there are differences in the motivations for reinvestors when they are in both winning and losing situations. Financial return and excitement motives were supported for win and loss situation, while recognition was supported in loss and pleasure in win situation.

Research limitations/implications

This study makes it possible to better understand the motivations behind crowdfunding reinvestment among digital workers. To build on this work, more studies should be conducted with different samples to test the generalisability of these results. Moreover, future studies on different samples could determine whether the same motivations would hold for other investors or whether another motivation would have greater impact on these reinvestment decisions.

Originality/value

While previous research on equity crowdfunding has predominantly focused on intrinsic and extrinsic motivations for participating and investing in equity crowdfunding platforms, the motives that specifically affect winning or losing situations for reinvestors have been largely overlooked.

Details

Journal of Economics, Finance and Administrative Science, vol. 27 no. 54
Type: Research Article
ISSN: 2218-0648

Keywords

Open Access
Article
Publication date: 18 July 2023

Weiyao Kang and Mengxi Yang

This study aims to provide an in-depth understanding of investors’ cognition and decision-making process with regard to internet financial products. The objective is to…

Abstract

Purpose

This study aims to provide an in-depth understanding of investors’ cognition and decision-making process with regard to internet financial products. The objective is to effectively guide users’ rational investments.

Design/methodology/approach

First, based on grounded theory, this study develops a tool for measuring users’ perceived value (PV) of internet financial products via in-depth interviews. Then, after comprehensively considering users’ environmental, individual and psychological characteristics, this study proposes a theoretical model of internet financial product investment decisions based on the PV of users. Finally, an empirical study is conducted on 693 valid sample data from e-commerce and online banking financial platforms.

Findings

The empirical results suggest that network externalities influence users’ financial behavior by herding (HE) (imitating others and discounting their own information) and PV. PV and HE are key factors in users’ investment decisions with regard to internet financial products. Moreover, users’ self-efficacy (SE) and platform type play moderate roles in the influence mechanism.

Practical implications

The research conclusions provide valuable references for designing financial products and establishing regulatory rules, which will help the internet financial industry to grow soundly and innovatively.

Originality/value

This study uncovers the mediating effect of HE and PV between network externalities and users’ investment intentions in the context of internet financial products. In addition, the moderating effect of users’ SE and platform types is revealed.

Details

Journal of Electronic Business & Digital Economics, vol. 2 no. 1
Type: Research Article
ISSN: 2754-4214

Keywords

Open Access
Article
Publication date: 26 July 2021

Jeremy St John, Karen St John and Bo Han

This study furthers one’s understanding of the motivations of the crowdfunding crowd by empirically examining critical factors that influence the crowd's decision to support a…

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Abstract

Purpose

This study furthers one’s understanding of the motivations of the crowdfunding crowd by empirically examining critical factors that influence the crowd's decision to support a crowdfunding project.

Design/methodology/approach

Backer's comments from a sample of the top 100 most funded technology product projects on KickStarter were collected. A latent Dirichlet allocation (LDA) analysis strategy was adopted to investigate critical motivational factors. Three experts mapped those factors to the known theoretical constructs of social exchange theory (SET).

Findings

Although backers are motivated by value, they are also motivated by far less tangible social factors including trust and a feeling of psychological ownership. Findings suggest that the crowd is far more than a passive group of investors or customers and should be viewed as participatory stakeholders. This study serves as guidance for project owners hoping to motivate the crowd and for future investigators examining backer motivations in other types of crowdsourcing projects.

Research limitations/implications

Online chatter in the form of user-generated comments is an excellent data source for researchers to mine for value and meaning.

Practical implications

Given strong feelings of psychological ownership, project owners should actively engage the crowd and solicit the crowd for advice and help in order to motivate them.

Originality/value

The study presents the first empirical exploration of backer motivations using LDA guided by theory and the knowledge of experts. A framework of latent motivational factors is proposed.

Details

European Journal of Innovation Management, vol. 25 no. 6
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 2 August 2023

Abderahman Rejeb, Karim Rejeb, Andrea Appolloni and Horst Treiblmaier

Crowdfunding (CF) has become an increasingly popular means of financing for entrepreneurs and has attracted significant attention from both researchers and practitioners in recent…

Abstract

Purpose

Crowdfunding (CF) has become an increasingly popular means of financing for entrepreneurs and has attracted significant attention from both researchers and practitioners in recent years. The purpose of this study is to investigate the core content and knowledge diffusion paths in the CF field. Specifically, we aim to identify the main topics and themes that have emerged in this field and to trace the evolution of CF knowledge over time.

Design/methodology/approach

This study employs co-word clustering and main path analysis (MPA) to examine the historical development of CF research based on 1,528 journal articles retrieved from the Web of Science Core Collection database.

Findings

The results of the analysis reveal that CF research focuses on seven themes: sustainability, entrepreneurial finance, entrepreneurship, fintech, social entrepreneurship, social capital, and microcredits. The analysis of the four main paths reveals that equity CF has been the dominant topic in the past years. Recently, CF research has tended to focus on topics such as fintech, the COVID-19 pandemic, competition, Brexit, and policy response.

Originality/value

To the authors' best knowledge, this is the first attempt to explore knowledge diffusion dynamics in the CF field. Overall, the study offers a structure for analyzing the paths through which knowledge is diffused, enabling scholars to effectively manage a large volume of research papers and gain a deeper understanding of the historical, current, and future trends in the development of CF.

Details

European Journal of Innovation Management, vol. 26 no. 7
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 28 July 2021

Nadia Arshad and Adele Berndt

The purpose of this study is to understand the role of the migrant entrepreneur’s social capital and specifically their family social capital in the success of their crowdfunding…

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Abstract

Purpose

The purpose of this study is to understand the role of the migrant entrepreneur’s social capital and specifically their family social capital in the success of their crowdfunding ventures.

Design/methodology/approach

This paper develops an exploratory single case study of the Persu Bag started by a Chinese migrant entrepreneur in the USA, which was documented through in-depth interviews, email communication, social media interactions and secondary documents publicly available. This paper draws on crowdfunding and social capital literature to fulfil the purpose and adopt the perspective of the migrant entrepreneur in the study.

Findings

The study shows that the crowdfunding migrant entrepreneur’s family network contributes with their operand and operant resources from both the country of residence and country of origin. Besides having financial capacity, institutional knowledge and experience from both the host and home countries, the family network in both countries make the crowdfunding immigrant entrepreneur’s families more resourceful, providing additional benefits to the crowdfunding migrant entrepreneurs in the development of the campaign and crowdfunded venture.

Originality/value

This study broadens the understanding of the ways migrant entrepreneurs can rely on their family social capital for building financial capacity and starting a crowdfunded venture.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 17 no. 1
Type: Research Article
ISSN: 1750-6204

Keywords

Open Access
Article
Publication date: 20 March 2023

Roberto Linzalone, Salvatore Ammirato and Alberto Michele Felicetti

Crowdfunding (CF) is a digital-financial innovation that, bypassing credit crisis, bank system rigidities and constraints of the capital market, is allowing new ventures and…

Abstract

Purpose

Crowdfunding (CF) is a digital-financial innovation that, bypassing credit crisis, bank system rigidities and constraints of the capital market, is allowing new ventures and established companies to get the needed funds to support innovations. After one decade of research, mainly focused on relations between variables and outcomes of the CF campaign, the literature shows methodological lacks about the study of its overall behavior. These reflect into a weak theoretical understanding and inconsistent managerial guidance, leading to a 27% success ratio of campaigns. To bridge this gap, this paper embraces a “complex system” perspective of the CF campaign, able to explore the system's behavior of a campaign over time, in light of its causal loop structure.

Design/methodology/approach

By adopting and following the document model building (DMB) methodology, a set of 26 variables and mutual causal relations modeled the system “Crowdfunding campaign” and a data set based on them and crafted to model the “Crowdfunding campaign” with a causal loop diagram. Finally, system archetypes have been used to link the causal loop structure with qualitative trends of CF's behavior (i.e. the raised capital over time).

Findings

The research brought to 26 variables making the system a “Crowdfunding campaign.” The variables influence each other, thus showing a set of feedback loops, whose structure determines the behavior of the CF campaign. The causal loop structure is traced back to three system archetypes, presiding the behavior in three stages of the campaign.

Originality/value

The value of this paper is both methodological and theoretical. First, the DMB methodology has been expanded and reinforced concerning previous applications; second, we carried out a causation analysis, unlike the common correlation analysis; further, we created a theoretical model of a “Crowdfunding Campaign” unlike the common empirical models built on CF platform's data.

Details

European Journal of Innovation Management, vol. 26 no. 7
Type: Research Article
ISSN: 1460-1060

Keywords

Content available
Book part
Publication date: 10 May 2023

Abstract

Details

Contemporary Studies of Risks in Emerging Technology, Part A
Type: Book
ISBN: 978-1-80455-563-7

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