Understanding backers’ funding intention in reward crowdfunding: An elaboration likelihood perspective

Wang, Zhengpei; Yang, Xue

doi:10.1016/j.techsoc.2019.101149

Cited by 53 publications

(66 citation statements)

References 56 publications

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“…Moreover, ELM is widely used in the products advertising [22]. Information of project webpage on the platform can be regarded as the advertisement of the crowdfunding project [23]. Therefore, we adopt the project webpage information as the persuasion to construct an ELM model.…”

Section: Elm In Crowdfundingmentioning

confidence: 99%

“…Therefore, in this paper, the project progress information is classified as the central route, and the interactive communication information is classified as the peripheral route. Previous scholars [ 23 – 26 ] mostly adopted the product quality of the project and creators’ ability as the central route. It is different from the extant research in our route selection.…”

Section: Theoretical Background and Hypothesismentioning

confidence: 99%

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Backers investment behavior on explicit and implicit factors in reward-based crowdfunding based on ELM theory

2020

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The aim of this study is to identify the dynamic explicit and implicit information factors which displayed on the webpage of platforms that influence backers' investment decision-making behavior. We analyze the connections among these factors by collecting the longitudinal dataset from reward-based crowdfunding platform. Based on ELM model, we establish Fixed Estimation Panel Data Model respectively according to explicit and implicit factors and take Funding Status (crowdfunding results) as the moderating variable to observe the goal gradient effect. Results indicate that most variables in the central route affect backers' investment behavior positively, while most variables in the periphery route have a negative impact on backers' investment behavior. The Funding Status has a significant negative moderating effect on the explicit variables, and has no significant moderating effect on the implicit information variables of the project. In addition, we upgrade the econometric method used by previous scholars, which could improve the accuracy of the FE model. Furthermore, we find strong support for the herding effect in reward-based crowdfunding and the intensity tends to decrease before the funding goal draws near.

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Section: Elm In Crowdfundingmentioning

confidence: 99%

Section: Theoretical Background and Hypothesismentioning

confidence: 99%

Backers investment behavior on explicit and implicit factors in reward-based crowdfunding based on ELM theory

2020

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“…For these reasons, crowdfunding is more convenient for project creators than mainstream financing channels. Entrepreneurs can present their ideas and plans to a wide audience, in a friendly and interactive environment, and the audience can support the entrepreneurs without requiring them to provide complex business plans and financial indicators that are often difficult to achieve (Wang and Xue, 2019 ). According to Allison et al ( 2015 ) and Smith and Hong ( 2016 ), unlike traditional fundraising methods, crowdfunding has fewer restrictions and a higher financing.…”

Section: Introductionmentioning

confidence: 99%

“…Crowdfunding mechanisms are legally recognized by the governments of more and more countries, which leads to their rapid development and increase in popularity worldwide, beyond the traditional western space. The development is rapid or promising in countries such as China (Wang and Xue, 2019 ) or ASEAN-5 (Indonesia, Malaysia, Singapore, Philippines, and Thailand) (Dikaputra et al, 2019 ), Eastern-European countries such as Poland and Romania (Fanea-Ivanovici and Siemionek-Ruskan, 2019 ), but still hesitant in African countries (Jaziri and Miralam, 2019 ).…”

Section: Introductionmentioning

confidence: 99%

“…It is only provided this condition is met that the project presentation will be able to draw sufficient supporters. The success of a crowdfunding project is entirely dependent on the participation of potential sponsors; this is why understanding their financing intentions and motivations is a fundamental objective of this area of research (Wang and Xue, 2019 ).…”

Section: Introductionmentioning

confidence: 99%

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Psychological Determinants of Investor Motivation in Social Media-Based Crowdfunding Projects: A Systematic Review

et al. 2020

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Background: Using the power of Internet, crowdfunding platforms are currently changing the traditional landscape of fundraising. Social media-based IT platforms in particular are bringing the creators of crowdfunding projects closer than ever to potential investors. A large variety of factors function as determinants of individuals' intention to participate in crowdfunding and have an intertwined impact on funding as the ultimate project goal.Objectives: For a better understanding of investor behavior in social media-based crowdfunding projects, this paper covers identifying, analyzing, and classifying general and specific factors of investor motivation, based on the literature in the field.The main focus is the relationship between the affordances provided by social media-based crowdfunding platforms and the psychological determinants of investor motivation in innovative start-up projects.Methods: Using IEEE Explore, Clarivate Web of Science, ScienceDirect, and Scopus, we conducted a systematic review of the existing research on the emerging role of crowdfunding as a disruptive technology in financing the start-up innovative projects. The paper explores the main determinants of investor motivation and aims to streamline the success factors in crowdfunding campaigns.Results: A total of 1,216 publications were identified after searching the aforementioned databases and, upon refining the results, 515 articles were considered for the final sample. After reading the titles and abstracts, the sample was reduced to 78 articles that were read in-depth and synthesized in accordance with the defined research questions. The selected articles were clustered into three main categories: general studies, determinants of investor behavior, and success factors.Conclusions: In the new global economy, crowdfunding platforms have become the nexus between the emerging creators of innovative products and services and the necessary funding sources. This connection is possible via a cumulative collection of contributions from multiple investors recruited from the audience of the selected platform, without time or space constraints. However, the determinants of the investment decision are very different in the case of social media-based crowdfunding platforms compared to determinants in the mainstream environment. This paper surveys these motivators and reveals how platform features can be used to persuade individuals to make a financial contribution toward the success of a project.

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The contribution of crowdfunding for philanthropy: A systematic review and framework of donation and reward crowdfunding

Teunenbroek

Chiesa

Hesse

2023

Journal of Philanthropy and Marketing

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Which novelties do donation-and reward-based crowdfunding bring to philanthropy? Scholars interested in crowdfunding contributed to developing empirical explanations on which features impact online giving. However, the focus on theory building is limited. We developed a theoretical framework by categorizing the empirical findings reported in 198 studies, which resulted in four crowdfunding features impacting giving: (1) project creator, (2) social information,(3) rewards, and (4) project description. We explain why these features impact giving by integrating them with insights from several fields of social sciences, deriving ten giving mechanisms. We conclude that with impacting donations via crowdfunding, three giving themes exist: being affected by (1) the perceived project's quality, (2) social connections and/or (3) tangible rewards. The categorization of mechanisms for giving allows initiators to extract best practice examples for increasing the probability of successful crowdfunding projects considering the giving mechanisms.

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Understanding backers’ funding intention in reward crowdfunding: An elaboration likelihood perspective

Cited by 53 publications

References 56 publications

Backers investment behavior on explicit and implicit factors in reward-based crowdfunding based on ELM theory

Backers investment behavior on explicit and implicit factors in reward-based crowdfunding based on ELM theory

Psychological Determinants of Investor Motivation in Social Media-Based Crowdfunding Projects: A Systematic Review

The contribution of crowdfunding for philanthropy: A systematic review and framework of donation and reward crowdfunding

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