A literature review and integrated framework for the determinants of crowdfunding success

Abstract

Crowdfunding is an innovative strategy for financing a new business venture from the general public instead of seeking funds in traditional ways, such as issuing bonds or bank lending. This study aims to identify the determinants affecting the success of a crowdfunding campaign and how different measurements for crowdfunding success, different crowdfunding models, and the selection of subdivided determinants influence the determinants’ impacts on crowdfunding success. We set the disciplines in the search strategy to select studies related to crowdfunding success. Ultimately, 94 empirical papers are selected to reveal the different findings for the determinants of crowdfunding success; based on this information, we construct an integrated framework for future research. There has been much research on project- and creator-related factors; however, many of these factors have inconsistent relationships with crowdfunding success due to varying measurements of success. In particular, different measurements used within the same study for determinants or crowdfunding success may also produce inconsistent results. In addition, different crowdfunding models of a project have been found to induce additional findings. Our review of the determinants of crowdfunding success and the definitions of the determinants, as well as the proposed integrated framework, can help focus future work on relatively new or unique determinants rarely addressed in the existing literature. This work provides practical implications for both theory and practice, and directions for future research.

An Integrated Online/Offline Social Network-Based Model for Crowdfunding Support in Developing Countries: The Case of Nigeria

“…The inclusion of papers for the review followed an approach developed in [45] specifically for the analysis of the crowdfunding literature. As such, articles included in the review of the theory behind crowdfunding were selected based on the following criteria: (a) articles should be relevant to the search keywords; (b) articles should be peer-reviewed or be working papers, books, reports or research theses; (c) articles should be published in English; and (d) articles should be available in full text.…”

Are vegans generous? An exploration of the success factors of vegan crowdfunding projects

“…The dependent variable of this study is CS, which has been measured by researchers using different proxies. The most commonly used measure of CS is funding success, which means achieving the funding target (Deng et al, 2022). Following the prevalent literature in the field (Shneor and Vik, 2020;Deng et al, 2022) we used a dichotomous variable to measure the success rate.…”

“…The most commonly used measure of CS is funding success, which means achieving the funding target (Deng et al, 2022). Following the prevalent literature in the field (Shneor and Vik, 2020;Deng et al, 2022) we used a dichotomous variable to measure the success rate. CS is a dummy variable coded 1 if the project funds the predetermined goal within the given time and 0 for otherwise.…”

Explaining reward crowdfunding backers' intentions and behavior

“…Shneor and Munim, 2019; Baber, 2022; Shneor et al ., 2021). Also, considering the threat of moral hazard, hidden information problems and the private cost of information related to crowdfunding (Strausz, 2017; Belleflamme et al ., 2015; Deng et al ., 2022; Miglo, 2022), a second group has mostly employed signaling theory, viewing it as a mechanism for limiting information asymmetry between backers and fundraisers in backers' decision making (e.g. Kleinert et al ., 2020; Steigenberger and Wilhelm, 2018; Tajvarpour and Pujari, 2022) and enhancing effective persuasion (e.g.…”

“…More specifically, we explore whether backers' contribution behavior, as evidence of acceptance, will depend on known antecedents as outlined by the TAM frameworks? Several studies have emphasized the importance of crowdfunding platforms (Odorović and Wenzlaff, 2020; Deng et al ., 2022) as one of the three main actors in crowdfunding process and the providers of the “rules of the game” for backers and entrepreneurs (Maehle, 2020), as well as enacting codes of conduct (Odorović and Wenzlaff, 2020) and ensuring due diligence (Belleflamme et al ., 2015).…”