Abstract
Purpose: This study was conducted to assess the replicability and efficacy of several key success factors (KSFs) as identified in reward-based crowdfunding (RBC) literature through a South African based case study. The dramatic rise and omnipresence of platform-driven enterprises and citizen participation have altered the social and business landscape over the past decade. Crowdfunding in its modern-day form is a fundamental embodiment of these two movements showing significant growth worldwide. Despite this growth, the theoretical development of crowdfunding emanates from a limited nexus of research, causing a lack of diversity in utilised data and applied methodologies. This study was conducted in response to these perceived shortcomings. Design/methodology/approach: The research applied an inductive interpretivist research approach through data obtained from semi-structured interviews with 18 participants in a real-life RBC campaign in South Africa. Qualitative research techniques were utilised to analyse this data, including the researcher’s field notes from the case. Findings/results: This study’s findings suggested that current literature on crowdfunding can benefit from additional contributions emerging from studies utilising alternative data sources and diversified methodologies. Moreover, several findings from this study expand on existing theories relating to participant incentives, campaign characteristics and management practices are associated with KSFs. This emerged because of the context-specific nature of this study utilising the participants’ viewpoints in favour of historical quantitative data. Practical implications: The findings provide reward-based crowdfunding practitioners deeper insight to key success factors which could influence campaign outcomes. Originality/value: These findings contribute new theoretical knowledge about KSFs and its ability to incentivise participation in RBC and present practical recommendations to future RBC designers.
Highlights
Crowdfunding across its several forms are a nascent and dynamically growing phenomenon worldwide
The findings provide reward-based crowdfunding practitioners deeper insight to key success factors which could influence campaign outcomes
The primary objective of this article was to assess the transferability and efficacy of key success factors (KSFs) as identified in existing literature to a reward-based crowdfunding (RBC) campaign based in an under-investigated market, South Africa
Summary
Crowdfunding across its several forms are a nascent and dynamically growing phenomenon worldwide. A selection of five KSF categories (No 1: External social capital, No 2: Geographical location, No 6: Campaign content, No 7: Rewards and No 11: Communication) had particular relevance to the posed research questions. These KSF categories were selected to form the core focus of this article as the findings contribute to. No literature was found addressing the effect of location or the nationality of founders on accessing and utilising crowdfunding platforms, nor the probability of potential funders to be incentivised to partake in foreignbased campaigns. This article will report on the five significant KSFs as highlighted in the literature review and how it relates to each thematic group (Table 1)
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