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Article
Publication date: 3 April 2019

Pilar Madrazo-Lemarroy, Karla Barajas-Portas and Maria Elena Labastida Tovar

The purpose of this paper is to probe how reward-based crowdfunding campaigns accomplish their goal by adopting the theoretical constructs of social capital dimensions…

1017

Abstract

Purpose

The purpose of this paper is to probe how reward-based crowdfunding campaigns accomplish their goal by adopting the theoretical constructs of social capital dimensions: structural, cognitive and relational.

Design/methodology/approach

The approach used is a design model for concluded campaigns in a Mexican crowdfunding platform, which determines social capital from operating social networks (Facebook and Twitter). By using this model, the associations between the dimensions are revealed, verifying how social capital flourishes during the campaign and how it alters the campaign’s outcome.

Findings

The findings demonstrate how social interaction through a wide social network (structural dimension), shared vision and values among entrepreneurs and their potential funders (cognitive dimension), and the development of trustworthiness within the campaign (relational dimension) boost the probability of achieving the crowdfunding goal.

Research limitations/implications

The results inform researchers on how social capital is forged from social networks during a crowdfunding campaign. However, the method must be validated with other crowdfunding models and other social network platforms commonly used by campaign creators.

Practical implications

Contributions from this paper include tools (design model and evaluation method) associating theory with the crowdfunding mechanism, complementing previous work. Crowdfunding providers, as well as campaign creators, have now an approach to appraise social capital and obtain the desired goal.

Originality/value

In addition to providing much-needed research on the current state of crowdfunding, this paper analyzes the link between practice and theory, which can be valuable in confining the mechanism to an accurate theory and ensuring the theory’s longevity.

Details

Internet Research, vol. 29 no. 5
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 13 July 2020

Demetris Vrontis, Michael Christofi, Enrico Battisti and Elvira Anna Graziano

This paper explores knowledge sharing (KS) and intellectual capital (IC) impacts on the success rate of equity crowdfunding (EC) campaigns in the Italian market, which represents…

1309

Abstract

Purpose

This paper explores knowledge sharing (KS) and intellectual capital (IC) impacts on the success rate of equity crowdfunding (EC) campaigns in the Italian market, which represents a new model for financing entrepreneurial initiatives.

Design/methodology/approach

The relation between KS, IC and the success rate of EC campaigns is analysed with a panel regression that measures IC through the value added intellectual coefficient. Social network analysis is used to measure KS in the users' network on Twitter for EC campaigning. Specifically, the authors consider the information users exchange on social networks as a proxy of KS and identify the hubs influencing information dissemination, the size and strength of networks for each EC campaign. Finally, the success rate of EC campaigns is a ratio of the number of positive campaigns to the total number of campaigns for each platform.

Findings

The success rate of EC campaigns is positively related to IC and significantly and positively related to the number of connections the EC platforms have.

Practical implications

The positive relationship between the hub role of social network platforms and the success of EC campaigns provides an important signal to crowdfunding operators. As more potential investors focus on an EC campaign, a bandwagon effect could involve uninformed investors. This result is crucial in order to better understand how social media activity affects crowdfunding success.

Originality/value

Although the literature has examined the impact of KS on general firm performance and the mediating role of intellectual capital, no prior studies have examined the impacts of KS and IC on the success rate of EC campaigns in a specific market.

Details

Journal of Intellectual Capital, vol. 22 no. 1
Type: Research Article
ISSN: 1469-1930

Keywords

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