Reward crowdfunding contribution as planned behaviour: An extended framework

Rotem Shneor,Ziaul Haque Munim

doi:10.1016/j.jbusres.2019.06.013

Abstract

Reward crowdfunding is a popular channel for entrepreneurial fundraising, whereby backers receive non-monetary benefits in return for monetary contributions while accepting risks of non-delivery on campaign pitch promises. To understand contribution behavior in this context, we apply the Theory of Planned Behavior (TPB) for analyzing contribution intentionality and behavior, as well as their antecedents. We use survey data from 560 users of Finland's leading reward crowdfunding platform– Mesenaatti. Our findings show that an extended TPB model holds for reward crowdfunding and that both financial-contribution intentions and information-sharing intentions predict behavior. This highlights the dual nature of reward crowdfunding-contribution intentions and behavior, where information sharing helps reduce information asymmetry and serves as a quality signal in support of financial contribution. This paper also presents significant differences in attitudes, self-efficacy, financial contribution and information-sharing intentions between high-sum and low-sum contributors.

Highlights

Crowdfunding is an emerging channel for entrepreneurial and project funding, which has seen exponential growth in recent years, reaching a volume of EUR 262 billion in 2016, a 208% increase from EUR 130 billion in 2015 (Ziegler et al, 2018)
Our findings suggest that our model properly captures the antecedents of financial contribution behavior in the context of reward crowdfunding and provides support for both the conceptual application of the Theory of Planned Behavior (TPB) in this context, as well as the importance of the two intentional components – financial-contribution and information-sharing intentions in predicting crowdfunding behavior
Our findings show that all TPB (Ajzen, 1991) antecedents functioned as predicted by the theory, with significant positive effects of attitudes, self-efficacy, and subjective norms on financial contribution behavior

Summary

Introduction

Crowdfunding is an emerging channel for entrepreneurial and project funding, which has seen exponential growth in recent years, reaching a volume of EUR 262 billion in 2016, a 208% increase from EUR 130 billion in 2015 (Ziegler et al, 2018). This process is usually performed online and often without standard financial intermediaries (Mollick, 2014). Thanks to its anchoring in communities, crowdfunding incorporates advantages beyond the actual sums raised from interested members Such benefits include access to valuable and timely feedback, knowledge and technology to concepts under development (Gerber & Hui, 2013; Nucciarelli et al, 2017), demonstration of project legitimacy (Frydrych, Bock, Kinder, & Koeck, 2014), as well as direct access to, and interaction with, multiple stakeholders such as prospective customers, business partners, media, existing, future funders, etc. From an entrepreneurial perspective, crowdfunding may be used throughout the entrepreneurial process, from opportunity recognition to marshaling of resources and capacity development (Shneor & Flåten, 2015)

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Discussion

Conclusion