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Paper Number
2312
Paper Type
short
Description
With intense competition and relatively inexperienced founders, the crowdfunding market has reported high failure rates. However, the IT components of the crowdfunding market provide entrepreneurs with more opportunities for experimentation and trial, leading to a new phenomenon of post-failure relaunches. Research into campaign relaunch success is urgently needed but under-researched. By combining failure learning theory with a collective perspective, the present study examines how investors' co-creation, in terms of advocacy and feedback, can benefit crowdfunding relaunch success directly or indirectly (by motivating founders' failure learning). The study tested the proposed mediation model with 1,902 failure-relaunched Kickstarter campaigns, with most hypotheses supported. Furthermore, the study explores the role of the time interval between crowdfunding relaunch and prior release. The findings indicate that an increased time interval enhances the positive effects of founders' learning efforts on relaunch success while attenuating the potential positive effects of investors' advocacy, implying a tradeoff in timing decisions.
Recommended Citation
Liu, Xiaochen; JIN, Yu; Fang, Yulin; and Ye, Qiang, "Co-creation, Failure Learning, and Relaunch Success: Evidence from Online Crowdfunding Market" (2023). ICIS 2023 Proceedings. 11.
https://aisel.aisnet.org/icis2023/diginnoventren/diginnoventren/11
Co-creation, Failure Learning, and Relaunch Success: Evidence from Online Crowdfunding Market
With intense competition and relatively inexperienced founders, the crowdfunding market has reported high failure rates. However, the IT components of the crowdfunding market provide entrepreneurs with more opportunities for experimentation and trial, leading to a new phenomenon of post-failure relaunches. Research into campaign relaunch success is urgently needed but under-researched. By combining failure learning theory with a collective perspective, the present study examines how investors' co-creation, in terms of advocacy and feedback, can benefit crowdfunding relaunch success directly or indirectly (by motivating founders' failure learning). The study tested the proposed mediation model with 1,902 failure-relaunched Kickstarter campaigns, with most hypotheses supported. Furthermore, the study explores the role of the time interval between crowdfunding relaunch and prior release. The findings indicate that an increased time interval enhances the positive effects of founders' learning efforts on relaunch success while attenuating the potential positive effects of investors' advocacy, implying a tradeoff in timing decisions.
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14-DigitalInnovation