The Impact of Social Media on The Success of Crowdfunding in Developing Countries
DOI:
https://doi.org/10.52461/jftis.v2i1.2069Keywords:
Crowdfunding, Social-media, online communication, E-commerce, Project information, donation-basedAbstract
The use of online communities to garner monetary support for charitable organisations, cultural endeavours, innovative products, and business ideas is quickly becoming more widespread. However, empirical research on the main dynamics of crowdfunding is limited. To increase the number of funds for crowdfunding campaigns, it is crucial to promote and publicise them on social media platforms. This study investigates the impact of communication and connectivity on crowdfunding success. Despite the recent study that has been conducted on crowdfunding, there is still a knowledge vacuum on the aspects that contribute to the success of crowdfunding models. The research framework that was built as part of this study offers an in-depth analysis of the donation-based crowdfunding model as well as the aspects that contribute to its success. This study also provides guidance for fundraisers and policymakers to consider success factors when creating their funding comparing.
References
Agrawal, A., Catalini, C., & Goldfarb, A. (2014). Some simple economics of crowdfunding. Innovation policy and the economy, 14(1), 63-97. https://doi.org/10.1086/674021
Ahmad, B. S., Shafique, O., & Jamal, W. N. (2020). Impact of Perceived Corporate Social Responsibility on Banks’ Financial Performance and the Mediating Role of Employees’ Satisfaction and Loyalty in Pakistan. Journal of Accounting and Finance in Emerging Economies, 6(3), 765-774
Ain, Q., & Shafique, O. (2022). Development and validation of a questionnaire to identify the barriers to adopting green transformation. Competitive Educational Research Journal. 3(2), 77-103
Ajzen, I., & Driver, B. (1992). Contingent value measurement: On the nature and meaning of willingness to pay. Journal of consumer psychology, 1(4), 297-316. https://doi.org/10.1016/S1057-7408(08)80057-5
Aldrich, H., Zimmer, C., & Jones, T. (1986). Small business still speaks with the same voice: a replication of ‘the voice of small business and the politics of survival’. The Sociological Review, 34(2), 335-356. https://doi.org/10.1111/j.1467-954X.1986.tb02705.x
Alegre, I., & Moleskis, M. (2016). Crowdfunding: a review and research agenda. Available at SSRN 2900921. https://dx.doi.org/10.2139/ssrn.2900921
BBC Online. (2013). The Statue of Liberty and America's crowdfunding pioneer.
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2013). Individual crowdfunding practices. Venture Capital, 15(4), 313-333. https://doi.org/10.1080/13691066.2013.785151
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the right crowd. Journal of business venturing, 29(5), 585-609. https://doi.org/10.1016/j.jbusvent.2013.07.003
Bouncken, R. B., Komorek, M., & Kraus, S. (2015). Crowdfunding: The current state of research. International Business & Economics Research Journal (IBER), 14(3), 407-416. https://doi.org/10.19030/iber.v14i3.9206
Brun, I., Rajaobelina, L., & Ricard, L. (2014). Online relationship quality: scale development and initial testing. International journal of bank marketing, 32(1), 5-27. https://doi.org/10.1108/IJBM-02-2013-0022
Casson, M., & Giusta, M. D. (2007). Entrepreneurship and social capital: Analysing the impact of social networks on entrepreneurial activity from a rational action perspective. International small business journal, 25(3), 220-244. https://doi.org/10.1177/0266242607076524
Dillard, J. P., Solomon, D. H., & Palmer, M. T. (1999). Structuring the concept of relational communication. Communications Monographs, 66(1), 49-65. https://doi.org/10.1080/03637759909376462
Etter, V., Grossglauser, M., & Thiran, P. (2013). Launch hard or go home! Predicting the success of Kickstarter campaigns. In Proceedings of the first ACM conference on Online social networks (pp. 177-182). Association for Computing Machinery. https://doi.org/10.1145/2512938.2512957
Frydrych, D., Bock, A. J., Kinder, T., & Koeck, B. (2014). Exploring entrepreneurial legitimacy in reward-based crowdfunding. Venture Capital, 16(3), 247-269. https://doi.org/10.1080/13691066.2014.916512
Gerber, E. M., Hui, J. S., & Kuo, P.-Y. (2012). Crowdfunding: Why People Are Motivated to Post and Fund Projects on Crowdfunding Platforms. In Computer Supported Cooperative Work 2012. https://www.researchgate.net/publication/261359489
Gobble, M. M. (2012). Everyone is a venture capitalist: the new age of crowdfunding. Research technology management, 55(4), 4-7. https://www.jstor.org/stable/26586617
Greve, A., & Salaff, J. W. (2003). Social networks and entrepreneurship. Entrepreneurship theory and practice, 28(1), 1-22. https://doi.org/10.1111/1540-8520.00029
Hindle, K., & Klyver, K. (2007). Exploring the relationship between media coverage and participation in entrepreneurship: Initial global evidence and research implications. International entrepreneurship and management journal, 3, 217-242. https://doi.org/10.1007/s11365-006-0018-8
Hoang, H., & Antoncic, B. (2003). Network-based research in entrepreneurship: A critical review. Journal of business venturing, 18(2), 165-187. https://doi.org/10.1016/S0883-9026(02)00081-2
Hruschka, H. (2013). Comparing Small‐and Large‐Scale Models of Multicategory Buying Behavior. Journal of Forecasting, 32(5), 423-434. https://doi.org/10.1002/for.2251
Hu, M., Li, X., & Shi, M. (2015). Product and pricing decisions in crowdfunding. Marketing Science, 34(3), 331-345. https://doi.org/10.1287/mksc.2014.0900
Hui, J. S., Gerber, E., & Greenberg, M. (2012). Easy money? The demands of crowdfunding work. Northwestern University, Segal Design Institute, 1-11.
Huntley, J. K. (2006). Conceptualization and measurement of relationship quality: Linking relationship quality to actual sales and recommendation intention. Industrial marketing management, 35(6), 703-714. https://doi.org/10.1016/j.indmarman.2005.05.011
Jariyapan, P., Mattayaphutron, S., Gillani, S. N., & Shafique, O. (2022). Factors Influencing the Behavioural Intention to Use Cryptocurrency in Emerging Economies During the COVID-19 Pandemic: Based on Technology Acceptance Model 3, Perceived Risk, and Financial Literacy. Frontiers in Psychology. 12:814087.
Kaartemo, V. (2017). The elements of a successful crowdfunding campaign: A systematic literature review of crowdfunding performance. International Review of Entrepreneurship, 15(3), 291-318.
Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business horizons, 53(1), 59-68. https://doi.org/10.1016/j.bushor.2009.09.003
Kietzmann, J. H., Hermkens, K., McCarthy, I. P., & Silvestre, B. S. (2011). Social media? Get serious! Understanding the functional building blocks of social media. Business horizons, 54(3), 241-251. https://doi.org/10.1016/j.bushor.2011.01.005
Kim, S.-S., & Crompton, J. L. (2001). The effects of different types of information messages on perceptions of price and stated willingness-to-pay. Journal of Leisure Research, 33(3), 299-318. https://doi.org/10.1080/00222216.2001.11949943
Lai, L. S., & Turban, E. (2008). Groups formation and operations in the Web 2.0 environment and social networks. Group Decision and negotiation, 17, 387-402. https://doi.org/10.1007/s10726-008-9113-2
Li, H., Wang, H., Liu, J., & Xu, K. (2012). Video sharing in online social networks: Measurement and analysis. In Proceedings of the 22nd international workshop on Network and Operating System Support for Digital Audio and Video (pp. 83-88). Association for Computing Machinery. https://doi.org/10.1145/2229087.2229110
Lin, N. (2008). A network theory of social capital. In The handbook of social capital. Oxford University Press. http://www.pro-classic.com/ethnicgv/SN/SC/paper-final-041605.pdf
Massolution. (2012). The Crowdfunding Industry Report: Market Trends, Composition and Crowdfunding Platforms. Crowdsourcing LLC.
Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of business venturing, 29(1), 1-16. https://doi.org/10.1016/j.jbusvent.2013.06.005
Moreno, L., & Martinez, P. (2013). Overlapping factors in search engine optimization and web accessibility. Online Information Review, 37(4), 564-580. https://doi.org/10.1108/OIR-04-2012-0063
Moritz, A., Block, J., & Lutz, E. (2015). Investor communication in equity-based crowdfunding: a qualitative-empirical study. Qualitative Research in Financial Markets, 7(3), 309-342. https://doi.org/10.1108/QRFM-07-2014-0021
Morris, M., & Ogan, C. (2018). The Internet as mass medium. In The Media, Journalism and Democracy (pp. 389-400). Routledge. https://doi.org/10.4324/9781315189772-25
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. https://doi.org/10.1108/09564231111155079
Salido-Andres, N., Rey-Garcia, M., Alvarez-Gonzalez, L. I., & Vazquez-Casielles, R. (2021). Mapping the field of donation-based crowdfunding for charitable causes: systematic review and conceptual framework. VOLUNTAS: International Journal of Voluntary and Nonprofit Organisations, 32, 288-302. https://doi.org/10.1007/s11266-020-00213-w
Schwienbacher, A., & Larralde, B. (2010). Crowdfunding of small entrepreneurial ventures. In Handbook of entrepreneurial finance. Oxford University Press. https://dx.doi.org/10.2139/ssrn.1699183
Shafique, O., & Ahmad B. S. (2022). Impact of corporate social responsibility on the financial performance of banks in Pakistan: Serial mediation of employee satisfaction and employee loyalty. Journal of Public Affairs. 2022;22:e2397
Shafique, O., & Khan, M. (2020a). Factors Affecting Bankers’ Behavioral Intention to Adopt Green Banking: An Empirical Analysis of Banks in Pakistan. Journal of Business and Social Review in Emerging Economies, 6(2), 835-843.
Shafique, O., & Khan, R. M. N. (2020b). An Empirical Study on the Impact of Micro-Credit Financing on the Socio-Economic Status of Small Agriculturists in Pakistan. Journal of Business and Social Review in Emerging Economies, 6(3), 1051-1061. https://doi.org/10.26710/jbsee.v6i3.1367
Shneor, R., & Vik, A. A. (2020). Crowdfunding success: a systematic literature review 2010–2017. Baltic Journal of Management, 15(2), 149-182. https://doi.org/10.1108/BJM-04-2019-0148
Short, J. C., Ketchen Jr, D. J., McKenny, A. F., Allison, T. H., & Ireland, R. D. (2017). Research on crowdfunding: Reviewing the (very recent) past and celebrating the present. Entrepreneurship theory and practice, 41(2), 149-160. https://doi.org/10.1111/etap.12270
Walther, J. B. (1992). Interpersonal effects in computer-mediated interaction: A relational perspective. Communication research, 19(1), 52-90. https://doi.org/10.1177/009365092019001003
Watzlawick, P., Bavelas, J. B., & Jackson, D. D. (1967). Pragmatics of Human Communication, A Study of Interactional Patterns, Pathologies, and Paradoxes. WW Norton & Company, New York.
Wehnert, P., & Beckmann, M. (2021). Crowdfunding for a sustainable future: A systematic literature review. In IEEE Transactions on Engineering Management (pp. 3100-3115). IEEE. https://doi.org/10.1109/TEM.2021.3066305
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. https://doi.org/10.1016/j.im.2014.03.003
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Hina Yousaf , Syeda Muniba Ali, Rana Muhammad Zahid Hafeez, Madiha Ashiq
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The authors submitting and publishing in JFTIS agree to the copyright policy under Creative Commons CC-BY-NC 4.0 International license (Attribution-Non Commercial 4.0 International). Under this license, the authors published in JFTIS retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially.
