Directing the wisdom of the crowd

the importance of social interaction among founders and the crowd during crowdfunding campaigns

Thomas Clauss, Robert J. Breitenecker, Sascha Kraus*, Alexander Brem, Chris Richter

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Crowdfunding plays an important role as an alternative funding source for technology ventures. No earlier studies particularly investigated the importance of social interactions during such crowdfunding campaigns. Hence, we particularly take the interaction between the project owner and the community as well as among community members into account. We empirically investigated potential success factors for crowdfunding projects of entrepreneurs on the base of 430 projects from the German crowdfunding platform Visionbakery. Our results show that social interaction during a crowdfunding campaign indeed increases the likelihood of its success. As comments from crowd members on particular projects might be positive or negative and can also provide additional argumentation or raise questions, comments can cause a dialog among crowd members. This shows that herding might not only be related to the number of contributors but also to their shared attributes and perceptions. Our discussion of theoretical and managerial implications closes with recommendations for future research on this evolving topic.

Original languageEnglish
JournalEconomics of Innovation and New Technology
Volume27
Issue number8
Pages (from-to)709-729
ISSN1043-8599
DOIs
Publication statusPublished - 2018

Fingerprint

Social interaction
Wisdom
Herding
Success factors
Owners
Funding
Entrepreneurs
Argumentation
Interaction
Venture

Keywords

  • Crowdfunding
  • entrepreneurs
  • social interaction
  • technology firms

Cite this

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title = "Directing the wisdom of the crowd: the importance of social interaction among founders and the crowd during crowdfunding campaigns",
abstract = "Crowdfunding plays an important role as an alternative funding source for technology ventures. No earlier studies particularly investigated the importance of social interactions during such crowdfunding campaigns. Hence, we particularly take the interaction between the project owner and the community as well as among community members into account. We empirically investigated potential success factors for crowdfunding projects of entrepreneurs on the base of 430 projects from the German crowdfunding platform Visionbakery. Our results show that social interaction during a crowdfunding campaign indeed increases the likelihood of its success. As comments from crowd members on particular projects might be positive or negative and can also provide additional argumentation or raise questions, comments can cause a dialog among crowd members. This shows that herding might not only be related to the number of contributors but also to their shared attributes and perceptions. Our discussion of theoretical and managerial implications closes with recommendations for future research on this evolving topic.",
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Directing the wisdom of the crowd : the importance of social interaction among founders and the crowd during crowdfunding campaigns. / Clauss, Thomas; Breitenecker, Robert J.; Kraus, Sascha; Brem, Alexander; Richter, Chris.

In: Economics of Innovation and New Technology, Vol. 27, No. 8, 2018, p. 709-729.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Directing the wisdom of the crowd

T2 - the importance of social interaction among founders and the crowd during crowdfunding campaigns

AU - Clauss, Thomas

AU - Breitenecker, Robert J.

AU - Kraus, Sascha

AU - Brem, Alexander

AU - Richter, Chris

PY - 2018

Y1 - 2018

N2 - Crowdfunding plays an important role as an alternative funding source for technology ventures. No earlier studies particularly investigated the importance of social interactions during such crowdfunding campaigns. Hence, we particularly take the interaction between the project owner and the community as well as among community members into account. We empirically investigated potential success factors for crowdfunding projects of entrepreneurs on the base of 430 projects from the German crowdfunding platform Visionbakery. Our results show that social interaction during a crowdfunding campaign indeed increases the likelihood of its success. As comments from crowd members on particular projects might be positive or negative and can also provide additional argumentation or raise questions, comments can cause a dialog among crowd members. This shows that herding might not only be related to the number of contributors but also to their shared attributes and perceptions. Our discussion of theoretical and managerial implications closes with recommendations for future research on this evolving topic.

AB - Crowdfunding plays an important role as an alternative funding source for technology ventures. No earlier studies particularly investigated the importance of social interactions during such crowdfunding campaigns. Hence, we particularly take the interaction between the project owner and the community as well as among community members into account. We empirically investigated potential success factors for crowdfunding projects of entrepreneurs on the base of 430 projects from the German crowdfunding platform Visionbakery. Our results show that social interaction during a crowdfunding campaign indeed increases the likelihood of its success. As comments from crowd members on particular projects might be positive or negative and can also provide additional argumentation or raise questions, comments can cause a dialog among crowd members. This shows that herding might not only be related to the number of contributors but also to their shared attributes and perceptions. Our discussion of theoretical and managerial implications closes with recommendations for future research on this evolving topic.

KW - Crowdfunding

KW - entrepreneurs

KW - social interaction

KW - technology firms

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