How to attract low prosocial funders in crowdfunding? Matching among funders, project descriptions, and platform types

2023 | Information & Management | Citations: 0

Authors: Li, Yuanqing; Cabano, Frank; Li, Pingshu

Abstract: The amount of crowdfunding research that investigates funding success factors ha ... Expand

Abstract: The amount of crowdfunding research that investigates funding success factors has been increasing. The existing research shows inconsistent evidence regarding how a prosocial project description affects funding success and largely ignores the issue of alignment/misalignment among different factors in affecting funding success. We suggest that funders’ prosocial motivation can be an important factor for this inconsistent evidence. We integrate the elaboration likelihood model and language expectancy theory and demonstrate distinct decision-making patterns from high and low prosocial motivation funders. Through three experiments, we provide evidence for alignment/misalignment effects among funders’ prosocial motivation, prosocial project descriptions, and platform types (donation-based vs. reward-based). While there are no differences for participants with high prosocial motivation across conditions, we find that participants with low prosocial motivation are more willing to contribute to a project that has alignment between the different factors, namely to a project that has a high prosocial description on a donation-based platform, or to a project that has a low prosocial description on a reward-based platform. This research sheds light on the crowdfunding and prosocial motivation literature. Collapse

Topics: crowdfunding crowdsourcing decision making cost benefit analysis cross cultural research

Methods: experiment parametric test descriptive statistic ANOVA one-way ANOVA

Theories: expectancy theory of motivation elaboration likelihood model organizational behavior theory

Experts vs. Nonexperts in Online Crowdfunding Markets

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Lin, Mingfeng; Sias, Richard; Wei, Zaiyan

Abstract: The growth of crowdfunding markets that include both expert and nonexpert inves ... Expand

Abstract: The growth of crowdfunding markets that include both expert and nonexpert investors will soon accelerate due to recent changes in Securities Exchange Commission (SEC) regulations. Prior work has suggested that nonexperts (1) may benefit from experts' participation via mimicking their trades, but (2) will also face a cost, as experts crowding nonexperts out of the best opportunities will ensure that nonexperts will suffer lower returns than experts. Traditional economic theory holds that the crowding effect means that the relative importance of nonexperts in the market will decline over time until they become unimportant. Exploiting a unique period in one crowdfunding market (Prosper.com) that allowed us to directly estimate the net cost of competing with better-informed experts, we found that the net negative effects of expert participation on nonexperts are small. We used simulations to both better understand (1) the market characteristics and crowdfunding platform choices that influence experts' and nonexperts' returns, their return gap, and the extent to which nonexperts are better or worse off relative to a market without expert participation, and (2) the factors that may contribute to the small expert/nonexpert Prosper return gap. Collapse

Topics: crowdsourcing Prosper crowdfunding extensible markup language accounting

Methods: simulation descriptive statistic logistic regression experiment computational algorithm

Theories: economic theory

THIS IS HOW WE DO IT - A QUALITATIVE ASSESSMENT OF SUBSCRIPTION-BASED CROWDFUNDING CAMPAIGN MANAGEMENT STRATEGIES

2023 | European Conference On Information Systems | Citations: 0

Authors: Lingnau, Nicholas; Eichner, Arvid

Abstract: Subscription-based crowdfunding is an emerging type of crowdfunding that is cha ... Expand

Abstract: Subscription-based crowdfunding is an emerging type of crowdfunding that is characterized by enabling regular payments from supporters to creators and a creator-centric rather than one-time project focus. To create a successful subscription-based crowdfunding outcome creators can utilize managerial levers e.g., information control and relational labor. However, thus far, little is known about how creators employ the managerial levers at their disposal and the strategic considerations behind their use. To holistically capture the utilized managerial levers and strategic considerations, we conducted semistructured interviews with 22 creators on the popular subscription-based crowdfunding platform Patreon. Our findings highlight four key managerial levers of subscription-based crowdfunding creators: information control strategies, supporter interaction strategies, supporter acquisition strategies, and supporter retention strategies. We contribute to IS literature by enabling further exploration of creators' thought processes in managing their subscription-based crowdfunding campaigns and offer practical advice to practitioners (e.g., creators and crowdfunding platforms). Collapse

Topics: crowdsourcing crowdfunding social media YouTube Instagram

Methods: qualitative interview qualitative coding personal interview theoretical contribution

Co-creation, Failure Learning, and Relaunch Success: Evidence from Online Crowdfunding Market

2023 | International Conference on Information Systems | Citations: 0

Authors: Liu, Xiaochen; JIN, Yu; Fang, Yulin; Ye, Qiang

Abstract: With intense competition and relatively inexperienced founders, the crowdfundin ... Expand

Abstract: With intense competition and relatively inexperienced founders, the crowdfunding market has reported high failure rates. However, the IT components of the crowdfunding market provide entrepreneurs with more opportunities for experimentation and trial, leading to a new phenomenon of post-failure relaunches. Research into campaign relaunch success is urgently needed but under-researched. By combining failure learning theory with a collective perspective, the present study examines how investors' cocreation, in terms of advocacy and feedback, can benefit crowdfunding relaunch success directly or indirectly (by motivating founders' failure learning). The study tested the proposed mediation model with 1,902 failure-relaunched Kickstarter campaigns, with most hypotheses supported. Furthermore, the study explores the role of the time interval between crowdfunding relaunch and prior release. The findings indicate that an increased time interval enhances the positive effects of founders' learning efforts on relaunch success while attenuating the potential positive effects of investors' advocacy, implying a tradeoff in timing decisions. Collapse

Topics: crowdsourcing crowdfunding participatory design logistics management marketing management

Methods: design methodology regression analysis method computational algorithm logarithmic transformation theory development

Theories: learning theory

Quantifying Learning and Competition among Crowdfunding Projects: Metrics and a Predictive Model

2023 | HICSS | Citations: 0

Authors: Liu, Xiexin; Rahmani Moghaddam, Maryam; Fan, Weiguo (Patrick)

Abstract: The performance of a crowdfunding project is highly situational-dependent. In th ... Expand

Abstract: The performance of a crowdfunding project is highly situational-dependent. In this study, we quantify the interactions between crowdfunding projects in order to understand how these interactions can help predict the performance of crowdfunding campaigns. Specifically, we utilize Natural Language Processing (NLP) techniques to create a semi-automated system to label the associated product for each crowdfunding campaign. We also propose three sets of metrics to measure how crowdfunding projects learn from and compete with each other. Finally, we propose a machine learning model and demonstrate that the proposed metrics and the proposed model outperform other combinations when predicting the performance of crowdfunding projects. Collapse

Topics: crowdsourcing crowdfunding research and development mobile system knowledge sharing

Methods: cluster analysis natural language processing machine learning support vector machine term frequency–inverse document frequency

Policy Change, Social and Cultural Capital and Medical Crowdfunding Use: A Quasi-Natural Experiment

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Liu, Yuanyuan; Fan, Rui; Ravichandran, T.

Abstract: This study investigates the impact of health policy, specifically the Individua ... Expand

Abstract: This study investigates the impact of health policy, specifically the Individual Mandate Repeal (IMR), on the use of medical crowdfunding. We employ a difference-in-differences research design and find that IMR has led to an increase in medical crowdfunding usage, with significant heterogeneity among users. Specifically, individuals with high cultural capital and bridging social capital, but low bonding social capital, are more likely to increase their use of medical crowdfunding. These results suggest that the sociotechnology for healthcare financing purpose (i.e., online medical crowdfunding) responds to the gap of the Affordable Care Act (i.e., IMR), and its usage is shaped by individual differences in cultural and social capital. The policy implication is that medical crowdfunding platform provides opportunities to take on the shortcomings of health policy, but the opportunity exploration or its usages are disparate across populations with varying levels of capital. Public health policymakers may develop policies fostering bridging social capital to expand the healthcare affordable opportunities for underserved populations without imposing taxes and mandate regulations. KeywordsMedical Crowdfunding Usage, individual mandate repeal, opportunity, forms of capital, cultural capital, bridging social capital, bonding social capital. Collapse

Topics: crowdsourcing crowdfunding social capital legal context social network

Methods: longitudinal research difference in differences quasi experiment experimental group

Input control and its signalling effects for complementors' intention to join digital platforms

2023 | Information Systems Journal | Citations: 2

Authors: Adam, Martin; Croitor, Evgheni; Werner, Dominick; Benlian, Alexander; Wiener, Martin

Abstract: Existing information systems (IS) research on platform control has largely focus ... Expand

Abstract: Existing information systems (IS) research on platform control has largely focused on examining how input control (i.e., the mechanisms used to control platform access) affects complementors' intentions and behaviours after their decision to join a digital platform. Yet, our understanding of how input control is perceived before this decision and how such perceptions influence prospective complementors' intention to join a platform is still nascent. In this regard, our study views input control as a salient signal that shapes prospective complementors' expected benefits and costs (i.e., their performance and effort expectancy), and ultimately their decision to join a digital platform. Drawing on signalling theory and the antecedent-benefit-cost (ABC) framework, we conducted a randomized online experiment in the context of donation-based crowdfunding. The experiment results offer empirical support for this view by showing that input control has distinct and complex signalling effects for prospective complementors. In particular, our findings reveal curvilinear and competing signalling effects, with perceived input control increasing both performance expectancy (at a decreasing rate) and effort expectancy (at an increasing rate). Also, we find that performance expectancy linearly increases prospective complementors' intention to join a platform, whereas effort expectancy linearly decreases their intention to do so. These findings imply that the overall relationship between perceived input control and intention to join follows an inverted U-shape curve, which means that neither a low nor a high, but a moderate degree of perceived input control maximizes prospective complementors' intention to join. In sum, the results of our study provide novel and important insights into the signalling role that perceived input control plays in shaping prospective complementors' decision to join a digital platform. Collapse

Topics: digital platform crowdsourcing crowdfunding behavioral intention digital ecosystem

Methods: experiment mediation analysis survey survey design theory development

Theories: signaling theory

Online Labor Platforms and the Role of Job Security and Compensation (Mis)Fits for Gig Workers

2023 | International Conference on Information Systems | Citations: 1

Authors: Adam, Martin; Wiener, Martin; Benlian, Alexander

Abstract: Online labor platforms (OLPs) use algorithms to manage their workers. Prior res ... Expand

Abstract: Online labor platforms (OLPs) use algorithms to manage their workers. Prior research has examined how OLP management shapes workers' attitudes, implicitly assuming that workers have the same preferences. However, research has largely neglected the role of (mis)fits between what workers need and what they receive from OLPs. Therefore, we conducted a survey with 121 Mechanical Turk workers and used polynomial regression analysis of workers' actual needs and perceived OLP supplies. Our results suggest that higher job security fit decreases perceived exploitation and increases system satisfaction, whereas higher compensation fit decreases perceived exploitation. In addition, we find that job security misfit has decreasing marginal effects on perceived exploitation and increasing marginal effects on system satisfaction. Overall, we contribute to a more nuanced understanding of workers' reactions to the design of OLPs by shedding light on the interplay between what gig workers need and what they perceive to receive from such platforms. Collapse

Topics: IS satisfaction platform worker algorithmic management digital platform ride sharing platform

Methods: survey regression analysis method cross sectional research polynomial regression theoretical contribution

P2P lending and Natural Disasters: Is Altruistic Behavior conditional?

2023 | International Conference on Information Systems | Citations: 0

Authors: Agrawal, Lavlin; Sharman, Raj; Tiu, Christian; Joenväärä, Juha

Abstract: In the aftermath of natural disasters, borrowers seeking credit from traditiona ... Expand

Abstract: In the aftermath of natural disasters, borrowers seeking credit from traditional sources, such as banks, may encounter higher interest rates than in pre-disaster periods. We examine the lending behavior of peer-topeer (P2P) platforms in the wake of disasters. Since P2P platforms involve individual investors in making lending decisions, they accommodate both profit motives and empathetic responses. Empirical evidence from psychology suggests that empathy can lead to prosocial behavior. Consistent with this assertion, we find that loans affected by natural disasters have lower interest rates than comparable loans not issued in the wake of disasters. Our study finds that lenders are involved in a prosocial behavior and are ready to give away some part of their interest income to help the communities in need. Collapse

Topics: crowdsourcing natural hazard peer-to-peer lending peer-to-peer model LendingClub

Methods: instrumental variables estimation experimental group sensitivity analysis ordinary least square robustness check

Building Climate Resilience in Smart Cities Using Open Data Services

2023 | HICSS | Citations: 0

Authors: Ahdekivi, V.; Ghanbari, H.; Rossi, M.

Abstract: Climate change and its consequences are among modern societies' most critical c ... Expand

Abstract: Climate change and its consequences are among modern societies' most critical challenges. To that end, cities have focused on using information technology in their climate mitigation efforts in smart cities. Considering the magnitude of the problem and its impact on our societies, the need for building climate-resilient smart cities is crucial. In this study, we aim to understand how smart cities can achieve climate resilience. Conducting an exploratory field study and using the urban climate resilience framework as a theoretical lens, we suggest that smart cities can leverage the potential of open data and citizen engagement to reach climate resilience. In particular, our results show that building climateresilient cities requires structural changes in citizen engagement processes and climate considerations. To that end, open data services and tools can be used to improve citizen engagement processes and develop more sustainable smart city solutions. Collapse

Topics: smart city open data climate change digital dashboard crowdsourcing

Methods: qualitative interview field study qualitative content analysis personal interview qualitative coding