Knowledge sharing between project creators and backers in rewards-based crowdfunding

Abstract

Purpose In the context of rewards-based crowdfunding, this study aims to examine the role of project backers as providers of knowledge inputs beyond just financial capital. Design/methodology/approach This study uses binomial regression to study the relationship between project creators’ and backers’ knowledge sharing, and the relationship of these two knowledge-sharing elements with achieving above-goal funding levels. Findings This study finds that the project creator’s knowledge sharing is significantly and positively related to backers’ knowledge sharing and that this relationship is moderated by the type of project. Furthermore, backers’ knowledge sharing is positively related to above-goal funding outcomes for a project. Research limitations/implications This study established the link between creators’ and backers’ knowledge sharing in rewards-based crowdfunding, which has been underexplored in the literature. This study’s direct attention to the role of knowledge as a key resource in rewards-based crowdfunding and crowdsourcing in general. Practical implications For entrepreneurs seeking crowdfunding, this study highlights the importance of knowledge sharing with their project backers to attain above-goal funding. Furthermore, eliciting backers’ knowledge input acts as a signaling mechanism that increases the crowd’s confidence in the project. It also endows entrepreneurs with knowledge resources that can improve project outcomes and achieve broader market success postcrowdfunding. Originality/value To the best of the authors’ knowledge, this study is one of the first to focus on knowledge content as a critical element in project backer-creator communication in rewards-based crowdfunding. This study also delineate the various knowledge types shared between the project creator and backers in both rewards-based crowdfunding projects.