Paper Number

ECIS2026-1704

Paper Type

CRP

Abstract

Crowdfunding platforms exhibit extreme performance inequality, where a few superstars achieve outsized success while most struggle to secure funding. While literature has documented this polarization, less is known about how non-superstars can strategically position themselves to compete. Drawing on resource partitioning theory (RPT), we examine how distinctiveness—deconstructed as inter-distinctiveness relative to peers and intra-distinctiveness relative to self-iteration—shapes fundraising performance. Leveraging a dataset of Indiegogo campaigns, we demonstrate that Inter-distinctiveness increases funding by claiming new niches, while intra-distinctiveness decreases it, as backers prefer consistent niche deepening. Market concentration paradoxically fosters specialization and amplifies the effectiveness of distinctiveness, specifically strengthening the rewards for inter-distinctiveness and mitigating the costs of intra-distinctiveness. Our findings extend RPT to crowdfunding, highlighting temporal dynamics revealing how niche participants navigate competitive landscapes via the multi-level distinctiveness strategy. Our findings also offer actionable insights for stakeholders in crowdfunding ecosystems, from platforms to various campaigners.

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Jun 14th, 12:00 AM

Mitigating Performance Polarization: Multilevel Distinctiveness For Resource Partitioning In Crowdfunding

Crowdfunding platforms exhibit extreme performance inequality, where a few superstars achieve outsized success while most struggle to secure funding. While literature has documented this polarization, less is known about how non-superstars can strategically position themselves to compete. Drawing on resource partitioning theory (RPT), we examine how distinctiveness—deconstructed as inter-distinctiveness relative to peers and intra-distinctiveness relative to self-iteration—shapes fundraising performance. Leveraging a dataset of Indiegogo campaigns, we demonstrate that Inter-distinctiveness increases funding by claiming new niches, while intra-distinctiveness decreases it, as backers prefer consistent niche deepening. Market concentration paradoxically fosters specialization and amplifies the effectiveness of distinctiveness, specifically strengthening the rewards for inter-distinctiveness and mitigating the costs of intra-distinctiveness. Our findings extend RPT to crowdfunding, highlighting temporal dynamics revealing how niche participants navigate competitive landscapes via the multi-level distinctiveness strategy. Our findings also offer actionable insights for stakeholders in crowdfunding ecosystems, from platforms to various campaigners.

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