Start Date
11-12-2016 12:00 AM
Description
Crowdfunding is a novel mechanism for sourcing financial capital for entrepreneurial ventures. The IT-enabled nature of crowdfunding platforms facilitates entrepreneurs to interact directly with current and prospective backers and to obtain timely feedback from the market during the fundraising process. Despite the dynamic nature of this process, there is a notable dearth of attention to it. The present study strives to fill this gap by examining the influences of fundraising patterns on entrepreneurs’ strategic behaviors for managing the project during the course of fundraising. Specifically, drawing upon the performance feedback model from the behavioral theory of the firm, we propose hypotheses related to the influences of concurrent funding performance on entrepreneurs’ exploitative and explorative actions, and the role of deadline proximity in these relationships. The proposed hypotheses will be empirically tested using a unique dataset that contains daily snapshots of crowdfunding projects. Expected theoretical and practical contributions are discussed.
Recommended Citation
Yang, Lusi and Hahn, Jungpil, "Tapping the Crowd for Feedback: The Dynamics of Strategic Behaviors in Crowdfunding" (2016). ICIS 2016 Proceedings. 24.
https://aisel.aisnet.org/icis2016/HumanBehavior/Presentations/24
Tapping the Crowd for Feedback: The Dynamics of Strategic Behaviors in Crowdfunding
Crowdfunding is a novel mechanism for sourcing financial capital for entrepreneurial ventures. The IT-enabled nature of crowdfunding platforms facilitates entrepreneurs to interact directly with current and prospective backers and to obtain timely feedback from the market during the fundraising process. Despite the dynamic nature of this process, there is a notable dearth of attention to it. The present study strives to fill this gap by examining the influences of fundraising patterns on entrepreneurs’ strategic behaviors for managing the project during the course of fundraising. Specifically, drawing upon the performance feedback model from the behavioral theory of the firm, we propose hypotheses related to the influences of concurrent funding performance on entrepreneurs’ exploitative and explorative actions, and the role of deadline proximity in these relationships. The proposed hypotheses will be empirically tested using a unique dataset that contains daily snapshots of crowdfunding projects. Expected theoretical and practical contributions are discussed.