Social identity and signalling success factors in online crowdfunding. / Kromidha, Endrit; Robson, Paul.

In: Entrepreneurship and Regional Development, Vol. 28, No. 9-10, 29.06.2016, p. 605-629.

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Social identity and signalling success factors in online crowdfunding. / Kromidha, Endrit; Robson, Paul.

In: Entrepreneurship and Regional Development, Vol. 28, No. 9-10, 29.06.2016, p. 605-629.

Research output: Contribution to journalArticle

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Kromidha, Endrit ; Robson, Paul. / Social identity and signalling success factors in online crowdfunding. In: Entrepreneurship and Regional Development. 2016 ; Vol. 28, No. 9-10. pp. 605-629.

BibTeX

@article{dfa9995e36a24ea1b7f3c2e518598d61,
title = "Social identity and signalling success factors in online crowdfunding",
abstract = "Online crowdfunding means relying on the Internet to seek financial support from the general public. In this paper we examine success factors in the social capital networks of the top 5000 most funded projects in Kickstarter.com at the time of this study. We first look at how fundraisers and backers identify themselves with the projects they support in their own social networks. This is modelled using Facebook friends, and Facebook shares, respectively, guided by social identity theory. Secondly, we use signalling theory to investigate crowdfunding success based on backers’ and fundraisers’ ability to engage in a forum, modelled using the number of comments between them, or with unilateral signals using the number of updates from the fundraiser. This study suggests that funders and backers who identify themselves with the projects in their own social networks are associated with greater pledge/backer ratio. We also find that projects where the fundraiser and its backers exchange more signals in a joint forum, but not signals delivered unilaterally by the fundraiser, have a greater pledge/backer ratio. These findings, based on a scalable quantitative study, highlight the importance of a multi-theory approach, advance social identity theory and signalling theory in the context of crowdfunding, and could be applied to online and normal entrepreneurship environments alike.",
keywords = "crowdfunding, social identity theory, signalling theory, entrepreneurship, financing, success factors",
author = "Endrit Kromidha and Paul Robson",
year = "2016",
month = "6",
day = "29",
doi = "10.1080/08985626.2016.1198425",
language = "English",
volume = "28",
pages = "605--629",
journal = "Entrepreneurship and Regional Development",
issn = "0898-5626",
publisher = "Routledge",
number = "9-10",

}

RIS

TY - JOUR

T1 - Social identity and signalling success factors in online crowdfunding

AU - Kromidha, Endrit

AU - Robson, Paul

PY - 2016/6/29

Y1 - 2016/6/29

N2 - Online crowdfunding means relying on the Internet to seek financial support from the general public. In this paper we examine success factors in the social capital networks of the top 5000 most funded projects in Kickstarter.com at the time of this study. We first look at how fundraisers and backers identify themselves with the projects they support in their own social networks. This is modelled using Facebook friends, and Facebook shares, respectively, guided by social identity theory. Secondly, we use signalling theory to investigate crowdfunding success based on backers’ and fundraisers’ ability to engage in a forum, modelled using the number of comments between them, or with unilateral signals using the number of updates from the fundraiser. This study suggests that funders and backers who identify themselves with the projects in their own social networks are associated with greater pledge/backer ratio. We also find that projects where the fundraiser and its backers exchange more signals in a joint forum, but not signals delivered unilaterally by the fundraiser, have a greater pledge/backer ratio. These findings, based on a scalable quantitative study, highlight the importance of a multi-theory approach, advance social identity theory and signalling theory in the context of crowdfunding, and could be applied to online and normal entrepreneurship environments alike.

AB - Online crowdfunding means relying on the Internet to seek financial support from the general public. In this paper we examine success factors in the social capital networks of the top 5000 most funded projects in Kickstarter.com at the time of this study. We first look at how fundraisers and backers identify themselves with the projects they support in their own social networks. This is modelled using Facebook friends, and Facebook shares, respectively, guided by social identity theory. Secondly, we use signalling theory to investigate crowdfunding success based on backers’ and fundraisers’ ability to engage in a forum, modelled using the number of comments between them, or with unilateral signals using the number of updates from the fundraiser. This study suggests that funders and backers who identify themselves with the projects in their own social networks are associated with greater pledge/backer ratio. We also find that projects where the fundraiser and its backers exchange more signals in a joint forum, but not signals delivered unilaterally by the fundraiser, have a greater pledge/backer ratio. These findings, based on a scalable quantitative study, highlight the importance of a multi-theory approach, advance social identity theory and signalling theory in the context of crowdfunding, and could be applied to online and normal entrepreneurship environments alike.

KW - crowdfunding

KW - social identity theory

KW - signalling theory

KW - entrepreneurship

KW - financing

KW - success factors

U2 - 10.1080/08985626.2016.1198425

DO - 10.1080/08985626.2016.1198425

M3 - Article

VL - 28

SP - 605

EP - 629

JO - Entrepreneurship and Regional Development

JF - Entrepreneurship and Regional Development

SN - 0898-5626

IS - 9-10

ER -