Think Big or Small is Beautiful. An empirical
analysis of characteristics and determinants of
success of sustainable crowdfunding projects

Hörisch, Jacob

doi:10.1504/ijev.2018.10008386

Cited by 11 publications

(16 citation statements)

References 31 publications

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“…They found that technology risk decreases the excess of return of projects. Hörisch [36] analyzed factors influencing sustainable projects to succeed in financing and marketing using linear and logistic regression models. Updates made during campaigns are among the identified features with positive influence for sustainable projects to meet their funding targets.…”

Section: Related Workmentioning

confidence: 99%

The Right Time for Crowd Communication during Campaigns for Sustainable Success of Crowdfunding: Evidence from Kickstarter Platform

Ryoba

et al. 2020

Sustainability

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Only a small percentage of crowdfunding projects succeed in securing funds, the fact of which puts the sustainability of crowdfunding platforms at risk. Researchers have examined the influences of phased aspects of communication, drawn from updates and comments, on success of crowdfunding campaigns, but in most cases they have focused on the combined effects of the aspects. This paper investigated campaign success contribution of various combinations of phased communication aspects from updates and comments, the best of which can help creators to successfully manage campaigns by focusing on the important communication aspects. Metaheuristic and machine learning algorithms were used to search and evaluate the best combination of phased communication aspects for predicting success using Kickstarter dataset. The study found that the number of updates in phase one, the polarity of comments in phase two, readability of updates and polarity of comments in phase three, and the polarity of comments in phase five are the most important communication aspects in predicting campaign success. Moreover, the success prediction accuracy with the aspects identified after phasing is more than the baseline model without phasing. Our findings can help crowdfunding actors to focus on the important communication aspects leading to improved likelihood of success.

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Section: Related Workmentioning

confidence: 99%

The Right Time for Crowd Communication during Campaigns for Sustainable Success of Crowdfunding: Evidence from Kickstarter Platform

Ryoba

et al. 2020

Sustainability

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“…Concerning theoretical contributions, literature already recognizes the importance of project‐related (Calic & Mosakowski, ; Hörisch, ; Hörisch, ), founder‐related (Bonzanini et al, ; Calic & Mosakowski, ), project finance‐related (Bonzanini et al, ), and platform‐related (Bonzanini et al, ; Calic & Mosakowski, ; Vasileiadou et al, ) attributes on SO campaigns' success. To our knowledge, there are no studies that have instead addressed the role of specific product/service attributes pursued within SO campaigns in determining the success of such campaigns and thus the extent to which CF can support funding of SO projects.…”

Section: Conclusion Limitations and Future Developmentsmentioning

confidence: 99%

Crowdfunding as a tool to support sustainability‐oriented initiatives: Preliminary insights into the role of product/service attributes

et al. 2019

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A common goal of current research seems to uncover whether crowdfunding (CF) could be considered an effective way to support sustainability-oriented initiatives in securing funding, due to diverging results emerging from literature. We claim that the objective of proving whether CF may benefit sustainability-oriented initiatives could be misplaced; rather, we deem more fruitful to understand how critical are some attributes of products/services pursued within CF campaigns to benefiting sustainability-oriented initiatives and increasing their odds of success in CF. We focus on food-related projects as in this sector, sustainability issues apply more than to any other human activities and construct a unique sample of food CF campaigns launched and ended in the European Economic Area countries on the world's most popular reward-based CF platform, that is, Kickstarter. We identify campaigns with a sustainability orientation and perform an in-depth qualitative analysis, which allows us to classify them into meaningful clusters and subclusters. Our research suggests that the emphasis on egoistic/self-centered product attributes, rather than on altruistic/society-centered attributes, is generally more crucial to facilitate CF support to sustainability-oriented projects. However, the emphasis on altruistic/society-centered attributes emerges to be more beneficial for initiatives specifically supporting local products. Our results also suggest that rewardbased CF is not suitable for sustainability-oriented projects targeting disadvantaged individuals/groups. These results offer both theoretical and empirical contributions to the literature as well as practical implications.

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“…However, funding is a critical phase in new business formation (Shane 2003), especially in the case of sustainable entrepreneurs as their non-traditional business view might lead to difficulties in attracting traditional investors (Choi and Gray, 2008). According to previous studies (Hörisch, 2015(Hörisch, , 2018Ortas et al, 2013), they often experience a lack of funding. The need to balance economic, social and environmental goals makes sustainable businesses more ambiguous and therefore less attractive for traditional investors compared to purely profit-oriented firms (Messeni Petruzzelli et al, 2019).…”

Section: Theoretical Background 21 Sustainable Entrepreneurship: Pementioning

confidence: 99%

“…Despite the increasing importance of sustainable crowdfunding, research on this topic remains limited (Messeni Petruzzelli et al, 2019;Testa et al, 2019). There are rather contradictory findings around the success of sustainable crowdfunding campaigns (Hörisch, 2015(Hörisch, , 2018Calic and Mosakowski, 2016;Vismara, 2019), and there is a need to adapt findings from the general crowdfunding literature to the context of sustainable crowdfunding. Researchers have begun to explore the peculiarities of sustainable crowdfunding (e.g.…”

Section: Contribution and Limitationsmentioning

confidence: 99%

“…Several platforms catering only to sustainable projects have recently been established and most mainstream crowdfunding platforms host a significant number of sustainable projects. Sustainable crowdfundingfinancing sustainable ventures via crowdfunding (Hörisch, 2018) has therefore become a phenomenon on its own, which is reflected in researchers' recent interest in the topic (Messeni Petruzzelli et al, 2019;Motlyska-Kuzma, 2018;Testa et al, 2019;Wehnert et al, 2019). However, this field is still in its infancy and more research is necessary (Messeni Petruzzelli et al, 2019;Testa et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

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Sustainable crowdfunding: insights from the project perspective

María

2020

BJM

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PurposeThis paper explores the peculiarities of sustainable crowdfunding from the project perspective. The research question is: what are the distinctive features of sustainable crowdfunding, in terms of crowdfunding motivation, platform choice, crowdfunding costs and relationships with backers?Design/methodology/approachThe current study follows a qualitative approach, through conducting in-depth interviews with representatives of sustainable projects, which have had successful crowdfunding campaigns. The selected projects represent various industries and crowdfunding models.FindingsSustainable entrepreneurs have both financial and non-financial motivations for crowdfunding. A distinctive feature is the importance of community engagement, since the community spirit of crowdfunding is well suited to sustainable projects. The choice of the crowdfunding platform is more complex for sustainable entrepreneurs, as they need to consider the platform's sustainability. Sustainable entrepreneurs also have to put more effort into their communication activities with potential backers, to compensate for the intangibility of sustainability claims. Moreover, they need to have a greater focus on building relationships with backers due to both the community spirit of their projects and legitimacy issues.Originality/valueThe current paper contributes to the limited literature on sustainable crowdfunding and the literature on funding of sustainable businesses and can act as a foundation for further research in this field. Current findings also have high practical value. Crowdfunding platforms may use the insights provided here to better meet the needs of sustainable entrepreneurs, while sustainable entrepreneurs can better understand what they need to pay attention to in their crowdfunding campaigns.

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Think Big or Small is Beautiful. An empirical analysis of characteristics and determinants of success of sustainable crowdfunding projects

Cited by 11 publications

References 31 publications

The Right Time for Crowd Communication during Campaigns for Sustainable Success of Crowdfunding: Evidence from Kickstarter Platform

The Right Time for Crowd Communication during Campaigns for Sustainable Success of Crowdfunding: Evidence from Kickstarter Platform

Crowdfunding as a tool to support sustainability‐oriented initiatives: Preliminary insights into the role of product/service attributes

Sustainable crowdfunding: insights from the project perspective

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