Advertisement

Beyond Financial Motivations in Crowdfunding: A Systematic Literature Review of Donations and Rewards

  • Inés AlegreEmail author
  • Melina Moleskis
Research Papers
  • 35 Downloads

Abstract

This study presents an interdisciplinary systematic review of the literature on donation-based and reward-based crowdfunding. The literature to date has explored differences in crowd’s behavior and incentives for participating in the platform, as well as the factors governing funding and post-funding success. The authors summarize the main findings to date and synthesize the different theoretical explanations for the decision-making behavior of the crowd. The investigation reveals how the literature to date has upheld the importance of crowdfunding as a social and democratic tool, one that demonstrates wise judgment and clairvoyance in recognizing potential successes and creating value for society.

Keywords

Crowdfunding Rewards Donations Decision-making Literature review 

Notes

Compliance with Ethical Standards

Conflict of interest

The authors declare that they have no conflict of interest.

References

  1. Adams, R. J., Smart, P., & Huff, A. S. (2017). Shades of grey: guidelines for working with the grey literature in systematic reviews for management and organizational studies. International Journal of Management Reviews, 19(4), 432–454.CrossRefGoogle Scholar
  2. Agrawal, A., Catalini, C., & Goldfarb, A. (2014). Some simple economics of crowdfunding. Innovation Policy and the Economy,14, 63.CrossRefGoogle Scholar
  3. Allison, T., Davis, B. C., Short, J. C., & Webb, J. (2015). Crowdfunding in a prosocial microlending environment: Examining the role of intrinsic versus extrinsic cues. Entrepreneurship Theory and Practice,39(1), 53–73.CrossRefGoogle Scholar
  4. Allison, T., Davis, B. C., Webb, J., & Short, J. C. (2017). Persuasion in crowdfunding: An elaboration likelihood model of crowdfunding performance. Journal of Business Venturing,32, 707–725.CrossRefGoogle Scholar
  5. Allison, T., McKenny, A. F., & Short, J. C. (2013). The effect of entrepreneurial rhetoric on microlending investment: An examination of the warm-glow effect. Journal of Business Venturing,28, 690–707.CrossRefGoogle Scholar
  6. André, K., Bureau, S., Gautier, A., & Rubel, O. (2017). Beyond the opposition between altruism and self-interest: Reciprocal giving in reward-based crowdfunding. Journal of Business Ethics,146(2), 313–332.CrossRefGoogle Scholar
  7. Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the right crowd. Journal of business venturing, 29(5), 585–609.CrossRefGoogle Scholar
  8. Bi, S., Liu, Z., & Usman, K. (2017). The influence of online information on investing decisions of reward-based crowdfunding. Journal of Business Research,71, 10–18.CrossRefGoogle Scholar
  9. Boons, M., Stam, D., & Barkema, H. G. (2015). Feelings of pride and respect as drivers of ongoing member activity on crowdsourcing platforms. Journal ofManagement studies, 52(6), 717–741.CrossRefGoogle Scholar
  10. Briner, R. B., Denyer, D., & Rousseau, D. M. (2009). Evidence-based management: Concept clean-up time? Academy of Management Perspectives,23, 19–32.CrossRefGoogle Scholar
  11. Bruton, G. D., Khavul, S., & Chavez, H. (2011). Microlending in emerging economies: Building a new line of inquiry from the ground up. Journal of International Business Studies,5, 718.CrossRefGoogle Scholar
  12. Burtch, G., Ghose, A., & Wattal, S. (2013). An empirical examination of the antecedents and consequences of contribution patterns in crowd-funded markets. Information Systems Research,24(3), 499–519.CrossRefGoogle Scholar
  13. Burtch, G., Ghose, A., & Wattal, S. (2015). The hidden cost of accommodating crowdfunder privacy preferences: A randomized field experiment. Management Science,61(5), 949–962.CrossRefGoogle Scholar
  14. Butticè, V., Colombo, M. G., & Wright, M. (2017). Serial crowdfunding, social capital, and project success. Entrepreneurship: Theory and Practice,41(2), 183–207.Google Scholar
  15. Calic, G., & Mosakowski, E. (2016). Kicking off social entrepreneurship: How a sustainability orientation influences crowdfunding success. Journal of Management Studies,53(5), 738–767.CrossRefGoogle Scholar
  16. Chan, C. S. R., & Parhankangas, A. (2017). Crowdfunding innovative ideas: How incremental and radical innovativeness influence funding outcomes. Entrepreneurship: Theory and Practice,41(2), 237–263.Google Scholar
  17. Chen, S., Thomas, S., & Kohli, C. (2016). What really makes a promotional campaign succeed on a crowdfunding platform? Journal of Advertising Research,56(1), 81–94.CrossRefGoogle Scholar
  18. Cholakova, M., & Clarysse, B. (2015). Does the possibility to make equity investments in crowdfunding projects crowd out reward-based investments? Entrepreneurship: Theory and Practice,39(1), 145–172.Google Scholar
  19. Colombo, M. G., Franzoni, C., & Rossi-Lamastra, C. (2015). Internal social capital and the attraction of early contributions in crowdfunding. Entrepreneurship Theory and Practice,39(1), 75–100.CrossRefGoogle Scholar
  20. Corazzini, L., Cotton, C., & Valbonesi, P. (2015). Donor coordination in project funding: Evidence from a threshold public goods experiment. Journal of Public Economics,128, 16–29.CrossRefGoogle Scholar
  21. Courtney, C., Dutta, S., & Li, Y. (2017). Resolving information asymmetry: Signaling, endorsement, and crowdfunding success. Entrepreneurship: Theory and Practice,41(2), 265–290.Google Scholar
  22. Cumming, D. J., Leboeuf, G., & Schwienbacher, A. (2015). Crowdfunding models: Keep-it-all vs. all-or-nothing. Available at SSRN: http://ssrn.com/abstract=2447567.
  23. Davis, B. C., Hmieleski, K. M., Webb, J., & Coombs, J. E. (2017). Funders’ positive affective reactions to entrepreneurs’ crowdfunding pitches: The influence of perceived product creativity and entrepreneurial passion. Journal of Business Venturing,32(1), 90–106.CrossRefGoogle Scholar
  24. Fan-Osuala, O., Zantedeschi, D., & Jank, W. (2017). Using past contribution patterns to forecast fundraising outcomes in crowdfunding. International Journal of Forecasting,34(1), 30–44.CrossRefGoogle Scholar
  25. Galak, J., Small, D., & Stephen, A. (2011). Microfinance decision making: A field study of prosocial lending. Journal of Marketing Research,48, 130–137.CrossRefGoogle Scholar
  26. Gamble, J. R., Brennan, M., & McAdam, R. (2017). A rewarding experience? exploring how crowdfunding is affecting music industry business models. Journal of Business Research,70, 25–36.CrossRefGoogle Scholar
  27. Gerber, E. M., Hui, J. S., & Kuo, P. (2012). Crowdfunding: Why people are motivated to post and fund projects on crowdfunding platforms. Working Paper. Retrieved at http://etal.juliehui.org/wp-content/uploads/2013/04/CSCW_Crowdfunding_Final.pdf.
  28. Gleasure, R., & Feller, J. (2016a). A rift in the ground: Theorizing the evolution of anchor values in crowdfunding communities through the oculus rift case study. Journal of the Association for Information Systems,17(10), 708–736.CrossRefGoogle Scholar
  29. Gleasure, R., & Feller, J. (2016b). Does heart or head rule donor behaviors in charitable crowdfunding markets? International Journal of Electronic Commerce,20(4), 499–524.CrossRefGoogle Scholar
  30. Gorbatai, A., & Nelson, L. (2015). Gender and the language of crowdfunding. Available at SSRN: http://ssrn.com/abstract=2549354.
  31. Greenberg, J., & Mollick, E. (2017). Activist choice homophily and the crowdfunding of female founders. Administrative Science Quarterly,62(2), 341–374.CrossRefGoogle Scholar
  32. Hauge, J. A., & Chimahusky, S. (2016). Are promises meaningless in an uncertain crowdfunding environment? Economic Inquiry,54(3), 1621–1630.CrossRefGoogle Scholar
  33. Hu, M., Li, X., & Shi, M. (2015). Product and pricing decisions in crowdfunding. Marketing Science,34(3), 331–345.CrossRefGoogle Scholar
  34. Jancenelle, V. E., Javalgi, R. G., & Cavusgil, E. (2017). The role of economic and normative signals in international prosocial crowdfunding: An illustration using market orientation and psychological capital. International Business Review,27, 208–212.CrossRefGoogle Scholar
  35. Jenq, C., Pan, J., & Theseir, W. (2012). What do donors discriminate on? evidence from kiva. org. Working paper University of Groningen.Google Scholar
  36. Jenq, C., Pan, J., & Theseira, W. (2015). Beauty, weight, and skin color in charitable giving. Journal of Economic Behavior & Organization,119, 234–253.CrossRefGoogle Scholar
  37. Josefy, M., Dean, T. J., Albert, L. S., & Fitza, M. A. (2017). The role of community in crowdfunding success: Evidence on cultural attributes in funding campaigns to ‘save the local theater’. Entrepreneurship: Theory and Practice,41(2), 161–182.Google Scholar
  38. Kang, L., Jiang, Q., & Tan, C. (2017). Remarkable advocates: An investigation of geographic distance and social capital for crowdfunding. Information & Management,54(3), 336–348.CrossRefGoogle Scholar
  39. Kromidha, E., & Robson, P. (2016). Social identity and signaling success factors in online crowdfunding. Entrepreneurship and Regional Development,28(9), 605–629.CrossRefGoogle Scholar
  40. Kshetri, N. (2015). Success of crowd-based online technology in fundraising: An institutional perspective. Journal of International Management,21(2), 100–116.CrossRefGoogle Scholar
  41. Kuppuswamy, V., & Bayus, B. L. (2017). Does my contribution to your crowdfunding project matter? Journal of Business Venturing,32, 72–89.CrossRefGoogle Scholar
  42. Kuti, M., & Madarász, G. (2014). Crowdfunding. Public Finance Quarterly, 59(3), 355.Google Scholar
  43. Lawrence, A., Houghton, J., Thomas, J., & Weldon, P. R. (2014). Where is the evidence? Realising the value of grey literature for public policy and practice: A discussion paper. Melbourne: Swinburne Institute for Social Research.Google Scholar
  44. Lehner, O. M. (2014). The formation and interplay of social capital in crowdfunded social ventures. Entrepreneurship and Regional Development,26(5), 478–499.CrossRefGoogle Scholar
  45. Li, Z., & Duan, J. A. (2014). Dynamic strategies for successful online crowdfunding. NET Institute Working Paper No. 14-09. Available at SSRN: http://ssrn.com/abstract=2506352.
  46. Lin, Y., Boh, F., & Goh, K. (2014). How different are crowdfunders? Examining archetypes of crowdfunders and their choice of projects. Available at SSRN: http://ssrn.com/abstract=2397571.
  47. Ly, P., & Mason, G. (2012). Individual preferences over development projects: Evidence from microlending on Kiva. Voluntas: International Journal of Voluntary and Nonprofit Organizations,23(4), 1036–1055.CrossRefGoogle Scholar
  48. Maier, F., Meyer, M., & Steinbereithner, M. (2016). Nonprofit organizations becoming business-like: A systematic review. Nonprofit and Voluntary Sector Quarterly,45(1), 64–86.CrossRefGoogle Scholar
  49. Manning, S., & Bejarano, T. A. (2017). Convincing the crowd: Entrepreneurial storytelling in crowdfunding campaigns. Strategic Organization,15(2), 194–219.CrossRefGoogle Scholar
  50. Marom, D., Robb, A., & Sade, O. (2015). Gender dynamics in crowdfunding (Kickstarter): Evidence on entrepreneurs, investors, deals and taste based discrimination. Available at SSRN: http://ssrn.com/abstract=2442954.
  51. Meer, J. (2014). Effects of the price of charitable giving: Evidence from an online crowdfunding platform. Journal of Economic Behavior & Organization,103, 113–124.CrossRefGoogle Scholar
  52. Meyskens, M., & Bird, L. (2015). Crowdfunding and value creation. Entrepreneurship Research Journal,5(2), 155–166.CrossRefGoogle Scholar
  53. Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing,29(1), 1–16.CrossRefGoogle Scholar
  54. Mollick, E. R., & Kuppuswamy, V. (2014). After the campaign: Outcomes of crowdfunding. UNC Kenan-Flagler Research Paper No. 2376997. Available at SSRN: http://ssrn.com/abstract=2376997.
  55. Mollick, E., & Nanda, R. (2016). Wisdom or madness? Comparing crowds with expert evaluation in funding the arts. Management Science,62(6), 1533–1553.CrossRefGoogle Scholar
  56. Mollick, E., & Robb, A. (2016). Democratizing innovation and capital access: The Role Of Crowdfunding. California Management Review,58(2), 72–87.CrossRefGoogle Scholar
  57. Moss, T., Neubaum, D. O., & Meyskens, M. (2014). The effect of virtuous and entrepreneurial orientations on microfinance lending and repayment: A signaling theory perspective. Entrepreneurship Theory and Practice,39(1), 27–52.CrossRefGoogle Scholar
  58. Moss, T. W., Renko, M., Block, E., & Meyskens, M. (2018). Funding the story of hybrid ventures: Crowdfunder lending preferences and linguistic hybridity. Journal of Business Venturing,33(5), 643–659.CrossRefGoogle Scholar
  59. Nucciarelli, A., Li, F., Fernandes, K. J., Goumagias, N., Cabras, I., Devlin, S., et al. (2017). From value chains to technological platforms: The effects of crowdfunding in the digital game industry. Journal of Business Research,78, 341–352.CrossRefGoogle Scholar
  60. Ordanini, A., Miceli, L., Pizzetti, M., & Parasuraman, A. (2011). Crowd-funding: transforming customers into investors through innovative service platforms. Journal of service management, 22(4), 443–470.CrossRefGoogle Scholar
  61. Parhankangas, A., & Renko, M. (2017). Linguistic style and crowdfunding success among social and commercial entrepreneurs. Journal of Business Venturing,32(2), 215–236.CrossRefGoogle Scholar
  62. Roma, P., Messeni Petruzzelli, A., & Perrone, G. (2017). From the crowd to the market: The role of reward-based crowdfunding performance in attracting professional investors. Research Policy,46, 1606–1628.CrossRefGoogle Scholar
  63. Rousseau, D. M., Manning, J., & Denyer, D. (2008). 11 Evidence in management and organizational science: Assembling the field’s full weight of scientific knowledge through syntheses. The Aacademy of Management Annals,2(1), 475–515.CrossRefGoogle Scholar
  64. Rowlinson, M., Harvey, C., Kelly, A., & Morris, H. P. (2011). The use and abuse of journal quality lists. Organization,18, 443–446.CrossRefGoogle Scholar
  65. Ryu, S., & Kim, Y. G. (2016). A typology of crowdfunding sponsors: Birds of a feather flock together? Electronic Commerce Research and Applications,16, 43–54.CrossRefGoogle Scholar
  66. Saxton, G. D., & Wang, L. (2014). The social network effect: The determinants of giving through social media. Nonprofit and Voluntary Sector Quarterly,43(5), 850–868.CrossRefGoogle Scholar
  67. Schwienbacher, A., & Larralde, B. (2010). Crowdfunding of small entrepreneurial ventures. In Handbook of entrepreneurial finance. Oxford: University Press.Google Scholar
  68. Schwienbacher, A., & Larralde, B. (2012). Alternative types of entrepreneurial finance. In The Oxford handbook of entrepreneurial finance.Google Scholar
  69. Siering, M., Koch, J., & Deokar, A. V. (2016). Detecting fraudulent behavior on crowdfunding platforms: The role of linguistic and content-based cues in static and dynamic contexts. Journal of Management Information Systems,33(2), 421–455.CrossRefGoogle Scholar
  70. Skirnevskiy, V., Bendig, D., & Brettel, M. (2017). The influence of internal social capital on serial creators’ success in crowdfunding. Entrepreneurship: Theory and Practice,41(2), 209–236.Google Scholar
  71. Smith, S., Windmeijer, F., & Wright, E. (2015). Peer effects in charitable giving: Evidence from the (running) field. Economic Journal,125(585), 1053–1071.CrossRefGoogle Scholar
  72. Stanko, M. A., & Henard, D. (2017). Toward a better understanding of crowdfunding, openness and the consequences for innovation. Research Policy,46(4), 784–798.CrossRefGoogle Scholar
  73. Strausz, R. (2017). A theory of crowdfunding: A mechanism design approach with demand uncertainty and moral hazard. American Economic Review,107(6), 1430–1476.CrossRefGoogle Scholar
  74. Thies, F., Wessel, M., & Benlian, A. (2016). Effects of social interaction dynamics on platforms. Journal of Management Information Systems,33(3), 843–873.CrossRefGoogle Scholar
  75. Thürridl, C., & Kamleitner, B. (2016). What goes around comes around? Rewards as strategic assets in crowdfunding. California Management Review,58(2), 88–110.CrossRefGoogle Scholar
  76. Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management,14, 207–222.CrossRefGoogle Scholar
  77. Wang, Z., Mao, H., Li, Y. J., & Liu, F. (2016). Smile big or not? Effects of smile intensity on perceptions of warmth and competence. Journal of Consumer Research,43(5), 787–805.Google Scholar
  78. Wessel, M., Thies, F., & Benlian, A. (2016). The emergence and effects of fake social information: Evidence from crowdfunding. Decision Support Systems,90, 75–85.CrossRefGoogle Scholar
  79. Xu, B., Zheng, H., Xu, Y., & Wang, T. (2016). Configurational paths to sponsor satisfaction in crowdfunding. Journal of Business Research,69(2), 915–927.CrossRefGoogle Scholar
  80. Zheng, H., Li, D., Wu, J., & Xu, Y. (2014). The role of multidimensional social capital in crowdfunding: A comparative study in china and US. Information & Management,51(4), 488–496.CrossRefGoogle Scholar

Copyright information

© International Society for Third-Sector Research 2019

Authors and Affiliations

  1. 1.IESE Business SchoolUniversidad de NavarraBarcelonaSpain

Personalised recommendations