Virtual Communities and Collaboration

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Paper Type

Complete

Paper Number

1337

Description

Online crowdfunding attracts individuals with its extended crowdsourcing opportunities, but the determinants of the fundraising success are far from certain. In a digital communication context, the information asymmetry issue between the fundraisers and the donors creates a salient challenge for the fundraising success. Drawing insights from signaling theory, crowdfunding literature and word-of-mouth research, this study empirically examines the applicable strategies the fundraisers can take from signaler attributes and actions perspectives. Our findings contribute both theoretically and empirically. Our results suggest that the fundraiser's fundraising experience and petition written styles both matter, but their effects vary across multiple dimensions. In terms of fundraiser's experience, the success experiences deliver consistent positive signal to the donors about the project’s quality across time, whereas the cumulative experiences return opposite results. In terms of fundraiser’s actions, the effects of petition's reading ease differ among various textual components, but those of the subjective expressions do not.

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Aug 9th, 12:00 AM

Attributes and Actions: A Signaling Examination on the Determinants of Crowdfunding Success

Online crowdfunding attracts individuals with its extended crowdsourcing opportunities, but the determinants of the fundraising success are far from certain. In a digital communication context, the information asymmetry issue between the fundraisers and the donors creates a salient challenge for the fundraising success. Drawing insights from signaling theory, crowdfunding literature and word-of-mouth research, this study empirically examines the applicable strategies the fundraisers can take from signaler attributes and actions perspectives. Our findings contribute both theoretically and empirically. Our results suggest that the fundraiser's fundraising experience and petition written styles both matter, but their effects vary across multiple dimensions. In terms of fundraiser's experience, the success experiences deliver consistent positive signal to the donors about the project’s quality across time, whereas the cumulative experiences return opposite results. In terms of fundraiser’s actions, the effects of petition's reading ease differ among various textual components, but those of the subjective expressions do not.

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