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1 – 10 of 911Mujtaba Ahsan, Erlinde F.I. Cornelis and Andrew Baker
Crowdfunding has become a popular method to acquire capital for entrepreneurial ventures. To successfully achieve funding goals, it is critical for crowdfunding campaigns to…
Abstract
Purpose
Crowdfunding has become a popular method to acquire capital for entrepreneurial ventures. To successfully achieve funding goals, it is critical for crowdfunding campaigns to attain support of individuals (backers). This paper aims to presents a conceptual model that links a reward-based crowdfunding campaign’s product, pitch and promoter characteristics to expert and casual backers’ evaluation and behavior.
Design/methodology/approach
This paper draws from literature from consumer behavior, network, signaling and informational social influence theories to design a conceptual framework that highlights factors that influence potential backers’ participation in crowdfunding campaigns.
Findings
It is demonstrated that the conceptual framework presented in the manuscript usefully organizes the real-world tactical marketing decisions of a crowdfunding backer while also being readily amendable to integrating theoretical accounts of human behavior from a diverse body of social science literature. Empirically testable propositions are derived from this social science literature and recast into a manner that could be investigated in the crowdfunding context to expand the body of knowledge on this topic.
Practical implications
This manuscript provides a framework that can be useful to crowdfunders who wish to strategically plan how their marketing communication plan features may be tailored to attract both early- and late-stage crowdfunding backers.
Originality/value
This paper is novel in the crowdfunding literature because it integrates a diverse body of literature to explicitly identify how the strategic and tactical marketing communication characteristics of a crowdfunding campaign are likely to differently influence different types of potential crowdfunding backers.
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Yaokuang Li, Junjuan Du and Weizhong Fu
The purpose of this paper is to investigate the factors influencing quick cash by crowd in agri-food crowdfunding campaigns; this paper utilizes prospect theory to analyze the…
Abstract
Purpose
The purpose of this paper is to investigate the factors influencing quick cash by crowd in agri-food crowdfunding campaigns; this paper utilizes prospect theory to analyze the value and weighting functions of the crowd's cash.
Design/methodology/approach
Using samples of crowdfunding campaigns launched in the Zhongchou (www.Zhongchou.cn) platform's agriculture and food category, this paper employs a multivariate linear regression model to investigate factors that motivate the crowd to make quick investment decisions.
Findings
The results demonstrate that lowering the investment threshold, improving publicity, and increasing the benefits of a campaign can increase the decision weight assigned to a campaign, thereby motivating the crowd to make quick investment decisions. Improving the product's reputation, enhancing campaign promotion, and diversifying the reward scheme can increase the crowd's expected value of the campaign – another motivation for a quicker cash decision.
Practical implications
This paper can help initiators, platforms and regulators better fulfil their roles in promoting the rapid, healthy development of crowdfunding in the agri-food industry, especially in the context of the Chinese launch of significant initiatives to develop crowdfunding aimed at rural e-commerce and poverty alleviation.
Originality/value
This paper extends the behavioral finance concept of prospect theory to agri-food crowdfunding campaigns and investigates factors that motivate the crowd to make quick investment decisions. Additionally, this paper demonstrates that the backers of crowdfunding are not perfectly rational and can be motivated to invest by increasing mean decision weight and expected value of a campaign.
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Liang Zhao and Zhe Sun
Despite the growing research exploring the possibility and feasibility of financing socially oriented projects through crowdfunding, relatively little research examines which…
Abstract
Purpose
Despite the growing research exploring the possibility and feasibility of financing socially oriented projects through crowdfunding, relatively little research examines which crowdfunding model is better to serve such purpose. The purpose of this paper is to offer novel insights to mitigate this research gap.
Design/methodology/approach
A unique data set collected from the largest Chinese crowdfunding platform is used to test the hypotheses. To solve the perceived self-selection problem, the propensity score matching method is adopted in this paper. Based on this approach, the results of similar prosocial campaigns in two different models (pure donation and hybrid donation) are compared.
Findings
The empirical results show that the hybrid donation model is negatively associated with the status of success and the extent of success of prosocial campaigns. Specifically, compared to the pure donation model, hybrid donation model leads to a lower probability of success, fewer contributors, a lower funding amount and a lower completion ratio.
Originality/value
The paper contributes to a relatively understudied theme in crowdfunding, namely, donations. It does so by introducing the concepts of pure vs hybrid donation models and investigates the model selection problem in financing social projects through crowdfunding based on cognitive evaluation theory.
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Jake Hobbs, Georgiana Grigore and Mike Molesworth
Crowdfunding has become a significant way of funding independent film. However, undertaking a campaign can be time consuming and risky. The purpose of this paper is to understand…
Abstract
Purpose
Crowdfunding has become a significant way of funding independent film. However, undertaking a campaign can be time consuming and risky. The purpose of this paper is to understand the predictors likely to produce a film campaign that meets its funding goal.
Design/methodology/approach
This study analyses 100 creative crowdfunding campaigns within the film and video category on crowdfunding website Kickstarter. Campaigns were analysed in relation to a number of variables, followed by a discriminant analysis to highlight the main predictors of crowdfunding success.
Findings
This study finds key predictors of crowdfunding success and investigates differences between successful and failed crowdfunding campaigns. The attributes of these predictors lead us to question the long-term ability of crowdfunding to aid companies poorer in terms of time, financial and personnel resources, and therefore arguably in the greatest need of crowdfunding platforms.
Practical implications
The findings provide insight to practitioners considering the crowdfunding approach and offers knowledge and recommendations so as to avoid what can be naïve and costly mistakes. The findings highlight that crowdfunding should not be considered lightly and can be a considerable investment of resources to be successful.
Originality/value
The analysis of crowdfunding campaigns provides details on the significant predictors of crowdfunding success particularly relevant to creative campaigns. The findings provide a critique of previous claims about the benefit of crowdfunding for creative SMEs.
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Antonio Salvi, Nicola Raimo, Felice Petruzzella and Filippo Vitolla
In recent years, crowdfunding is assuming an increasingly central role in the development of business projects as an alternative financing tool to traditional sources. This study…
Abstract
Purpose
In recent years, crowdfunding is assuming an increasingly central role in the development of business projects as an alternative financing tool to traditional sources. This study analyses the role of communication in the success of crowdfunding campaigns in the restaurant sector in the European context.
Design/methodology/approach
This study conducts a regression analysis on a sample of 442 European restaurant crowdfunding projects launched on the Kickstarter platform in a time period spanning from 2014 to 2021. More specifically, this study uses a logistic regression model to test the impact of communication on the success of restaurant crowdfunding projects.
Findings
Empirical results suggest a strong impact of communication, declined in its different forms, on the success of restaurant crowdfunding campaigns. More specifically, they highlight a positive impact of the number of images, number of videos, readability and community orientation of the project description, number of comments and number of updates on the success of restaurant crowdfunding projects.
Originality/value
To the best of the authors’ knowledge, this study represents the first research that examines the effect of the communication on the success of restaurant crowdfunding projects conducted in the European context.
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Kalanit Efrat, Andreas Wald and Shaked Gilboa
Serial crowdfunders are vital to the advancement of crowdfunding, either by launching subsequent campaigns or by mentoring novice (first-time) crowdfunders. However, research on…
Abstract
Purpose
Serial crowdfunders are vital to the advancement of crowdfunding, either by launching subsequent campaigns or by mentoring novice (first-time) crowdfunders. However, research on crowdfunders’ drivers has focused on either novice crowdfunders’ motivations or the factors contributing to serial crowdfunders’ success. The present study aims to complement existing knowledge on serial crowdfunders by exploring behavioral and well-being aspects that drive novice crowdfunders to become serial crowdfunders.
Design/methodology/approach
Data on crowdfunders were retrieved through in-depth interviews with 42 novice and 17 serial crowdfunders on a list provided by the largest crowdfunding platform in Israel. Complementary data were collected from interviews with the chief executive officers (CEOs) of two leading rewards and donations platforms in Israel and from the contents of the pages of crowdfunding campaigns. A four-stage process of content analysis was applied.
Findings
Novice and serial crowdfunders follow different logics. While novice crowdfunders’ motivations and behavior can mostly be explained by the theory of planned behavior (TPB) and follow a more rational process, serial crowdfunders’ motivations and behavior are guided by aspects of well-being.
Originality/value
The findings show that the more rational process described by the TPB and the dimensions of well-being interacts in a circular way to motivate serial operations by crowdfunders. Well-being is also manifested in the maintenance of social ties and the development of social capital, which are crucial for serial entrepreneurs.
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Arpita Agnihotri, Saurabh Bhattacharya and Demetris Vrontis
This paper aims to explore how sub-national or regional cultural differences influence backers’ willingness to crowdfund projects. The paper also explores how migrant…
Abstract
Purpose
This paper aims to explore how sub-national or regional cultural differences influence backers’ willingness to crowdfund projects. The paper also explores how migrant transnationalism influences the impact of backer’s sub-national culture and crowdfunding relationships.
Design/methodology/approach
This paper is based on the experimental design technique using analysis of covariance methods. The authors tested the study hypotheses on a sample of 790 respondents.
Findings
The study results suggest that individuals differ in their intent to crowdfund product campaigns depending on value congruence between their cultural values derived from the region to which they belong and the nature of the product category, such as environmentally friendly or happiness-enhancing products.
Originality/value
This paper explores the role of regional cultural differences in determining the intention to crowdfund different campaigns based on the nature of the product. Value congruence, as driven by regional cultural differences with crowdfunding campaigns, has not been explored before.
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Simona Leonelli, Francesca Di Pietro and Francesca Masciarelli
Crowdfunding campaigns reflect the personality traits of the entrepreneur, influencing the chances of a successful fundraising. In this study, the authors focus on three different…
Abstract
Crowdfunding campaigns reflect the personality traits of the entrepreneur, influencing the chances of a successful fundraising. In this study, the authors focus on three different entrepreneurs’ personality dark traits: narcissism, Machiavellianism and psychopathy. Through a text analysis of 338 equity-crowdfunding campaigns in the UK, the authors identified narcissistic expressions used by entrepreneurs in their pitches, and their impact on funding success. The authors found an inverted U-shape relationship between entrepreneurs’ narcissism and the crowdfunding success. On the other hand, entrepreneurs’ psychopathy has a negative linear relationship with crowdfunding success. This study contributes to the entrepreneurship literature, highlighting the importance of displayed entrepreneurs’ personality traits in engaging with crowd investors.
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Xiaochen Liu, Yukuan Xu, Qiang Ye and Yu Jin
Fierce competition in the crowdfunding market has resulted in high failure rates. Owing to their dedication and efforts, many founders have relaunched failed campaigns as a…
Abstract
Purpose
Fierce competition in the crowdfunding market has resulted in high failure rates. Owing to their dedication and efforts, many founders have relaunched failed campaigns as a second attempt. Despite the need for a better understanding, the success of campaign relaunches has not been well-researched. To fill this research gap, this study first theorizes how founders’ learning may enhance their competencies and influence investors’ attribution of entrepreneurial failure. The study then empirically documents the extent and conditions under which such learning efforts impact campaign relaunch performance.
Design/methodology/approach
This study examines 5,798 Kickstarter-relaunched campaigns. The founders’ learning efforts are empirically captured by key changes in campaign design that deviate from past business practices. Word movers’ distances and perceptual hashing algorithms (pHash) are used separately to measure differences in campaign textual descriptions and pictorial designs.
Findings
Differences in textual descriptions and pictorial designs during campaign failure–relaunch are positively associated with campaign relaunch success. The impacts are further amplified when the previous failures are more severe.
Originality/value
This study is one of the first to examine the success of a campaign relaunch after an initial failure. This study contributes to a better understanding of founders’ learning in crowdfunding contexts and provides insights into the strategies founders can adopt to reap performance benefits.
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Giuseppe Valenza, Marco Balzano, Mario Tani and Andrea Caputo
This paper aims to contribute to the scientific debate concerning the impact of equity crowdfunding on the performance of crowdfunded firms after campaigning. To this aim, the…
Abstract
Purpose
This paper aims to contribute to the scientific debate concerning the impact of equity crowdfunding on the performance of crowdfunded firms after campaigning. To this aim, the purpose of this paper is to investigate the relationship between the characteristics of the campaign and the subsequent firm innovativeness.
Design/methodology/approach
This study adopts a quantitative research approach to evaluate if the entrepreneurial choices affecting the characteristics of the equity crowdfunding campaigns have an impact on the post-campaign firm innovativeness.
Findings
The results of the models show that the campaign characteristics have a direct impact on the firm innovativeness, both in terms of offering and communication and the campaign performance.
Originality/value
This paper presents one of the first studies to investigate the relationship between the choice of campaign characteristics and the post-campaign firm innovativeness. As such, the study contributes to both the literature concerning start-up innovation and the literature about the impact of equity crowdfunding.
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