Developing a Comprehensive Framework for Crowd Funding Factors by Using the Hexagon Technique
Downloads
In recent years, crowd funding has been seriously considered as a novel method of financing start-up businesses and innovative ideas. In its short life so far, the method has significantly grown in different aspects, such as the number of proposed platforms, the number of campaigns and their success rate, the amount of capital provided, and the number of proposed models. In addition, various researchers have investigated the phenomenon from different points of view. Nevertheless, only a few studies have carried out a comprehensive review of the factors affecting this method. The main purpose of this research is to design and implement a comprehensive framework for factors that affect crowd funding. In order to achieve this goal, the effective factors in this regard were first identified through a systematic review of the literature on crowd funding. Then, they were classified and clustered in a hexagonal framework based on the stakeholder's model. In other words, a qualitative method is used to extract the factors affecting crowd funding. The hexagons extracted from the literature were in 82 clusters, of which 38 were accounted for by capital seekers, 16 by investors and platforms, and 12 by other stakeholders. This study is the first effort to design a comprehensive framework for factors that affect crowd funding.
Doi: 10.28991/HIJ-2021-02-02-07
Full Text: PDF
O'Leary, D. E. (2015). Twitter Mining for Discovery, Prediction and Causality: Applications and Methodologies. Intelligent Systems in Accounting, Finance and Management, 22(3), 227–247. doi:10.1002/isaf.1376.
Deufemia, V., Mascardi, V., Paolino, L., Polese, G., & de Lumley, H. (2014). A volunteered geographic information system for collecting and rating petroglyph data. Journal of Visual Languages & Computing, 25(6), 963–972. doi:10.1016/j.jvlc.2014.10.031.
Gatautis, R., & Vitkauskaite, E. (2014). Crowdsourcing Application in Marketing Activities. Procedia - Social and Behavioral Sciences, 110, 1243–1250. doi:10.1016/j.sbspro.2013.12.971.
Palacios, M., Martinez-Corral, A., Nisar, A., & Grijalvo, M. (2016). Crowdsourcing and organizational forms: Emerging trends and research implications. Journal of Business Research, 69(5), 1834–1839. doi:10.1016/j.jbusres.2015.10.065.
Parker, S. C. (2013). Do serial entrepreneurs run successively better-performing businesses? Journal of Business Venturing, 28(5), 652–666. doi:10.1016/j.jbusvent.2012.08.001.
Rüling, C.-C., & Duymedjian, R. (2014). Digital bricolage: Resources and coordination in the production of digital visual effects. Technological Forecasting and Social Change, 83, 98–110. doi:10.1016/j.techfore.2013.05.003.
Eleta, I., & Golbeck, J. (2014). Multilingual use of Twitter: Social networks at the language frontier. Computers in Human Behavior, 41, 424–432. doi:10.1016/j.chb.2014.05.005.
Lara-Rubio, J., Blanco-Oliver, A., & Pino-Mejías, R. (2016). Promoting Entrepreneurship at the Base of the Social Pyramid via Pricing Systems: A case Study. Intelligent Systems in Accounting, Finance and Management, 24(1), 12–28. doi:10.1002/isaf.1400.
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the right crowd. Journal of Business Venturing, 29(5), 585–609. doi:10.1016/j.jbusvent.2013.07.003.
Macht, S. A., & Weatherston, J. (2014). The Benefits of Online Crowdfunding for Fund-Seeking Business Ventures. Strategic Change, 23(1-2), 1–14. doi:10.1002/jsc.1955.
Yang, A. S. (2015). Lottery Payment Cards: A Study of Mental Accounting. Intelligent Systems in Accounting, Finance and Management, 22(3), 201–226. doi:10.1002/isaf.1369.
Cosh, A., Cumming, D., & Hughes, A. (2009). Outside Enterpreneurial Capital. The Economic Journal, 119(540), 1494–1533. doi:10.1111/j.1468-0297.2009.02270.x.
Baumgardner, T., Neufeld, C., Huang, P. C.-T., Sondhi, T., Carlos, F., & Talha, M. A. (2015). Crowdfunding as a Fast-Expanding Market for the Creation of Capital and Shared Value. Thunderbird International Business Review, 59(1), 115–126. doi:10.1002/tie.21766.
Siva, N. (2014). Crowdfunding for medical research picks up pace. The Lancet, 384(9948), 1085–1086. doi:10.1016/s0140-6736(14)61661-5.
Stemler, A. R. (2013). The JOBS Act and crowdfunding: Harnessing the power”and money”of the masses. Business Horizons, 56(3), 271–275. doi:10.1016/j.bushor.2013.01.007.
Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16. doi:10.1016/j.jbusvent.2013.06.005.
Kleemann, F., Voß, G. G., & Rieder, K. (2008). Un(der) paid innovators: The commercial utilization of consumer work through crowdsourcing. Science, technology & innovation studies, 4(1), 5-26.
Lambert, T., & Schwienbacher, A. (2010). An empirical analysis of crowd funding. Social Science Research Network, 1578175 (1), 1-23. 2010.
Valančienč—, L., & JegelevičiŠ«tč—, S. (2014). Crowdfunding for Creating Value: Stakeholder Approach. Procedia - Social and Behavioral Sciences, 156, 599–604. doi:10.1016/j.sbspro.2014.11.248.
Agarwal, Nitin, Zhou, Aoying, & Xu, Guandong. (2014). Social cyber systems”Challenges, opportunities, and beyond. Journal of Systems and Software, 94, 1-3.
Ibrahim, N., & Verliyantina. (2012). The Model of Crowdfunding to Support Small and Micro Businesses in Indonesia Through a Web-based Platform. Procedia Economics and Finance, 4, 390–397. doi:10.1016/s2212-5671(12)00353-x.
Poetz, M. K., & Schreier, M. (2012). The Value of Crowdsourcing: Can Users Really Compete with Professionals in Generating New Product Ideas? Journal of Product Innovation Management, 29(2), 245–256. doi:10.1111/j.1540-5885.2011.00893.x.
Bayus, B. L. (2013). Crowdsourcing New Product Ideas over Time: An Analysis of the Dell IdeaStorm Community. Management Science, 59(1), 226–244. doi:10.1287/mnsc.1120.1599.
Howe, J. (2008). Crowdsourcing. Why the power of the crowd is driving future of business. New York: Three Rivers Press.
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. doi:10.1016/j.im.2014.03.003.
Agrawal, A., Catalini, C., & Goldfarb, A. (2011). The Geography of Crowdfunding. National Bureau of Economic Research Working Paper Series, No. 16820. doi:10.3386/w16820.
Agrawal, A., Catalini, C., & Goldfarb, A. (2013). Some Simple Economics of Crowdfunding. National Bureau of Economic Research Working Paper Series, No. 19133. doi:10.3386/w19133
Ahlers, G. K. C., Cumming, D., Günther, C., & Schweizer, D. (2015). Signaling in Equity Crowdfunding. Entrepreneurship Theory and Practice, 39(4), 955–980. doi:10.1111/etap.12157.
Kuppuswamy, V., & Bayus, B. L. (2013). Crowdfunding Creative Ideas: The Dynamics of Project Backers in Kickstarter. SSRN Electronic Journal. doi:10.2139/ssrn.2234765.
Schwienbacher, A., & Larralde, B. (2010). Crowdfunding of Small Entrepreneurial Ventures. SSRN Electronic Journal. doi:10.2139/ssrn.1699183.
Crowdsourcing LLC. (2015). The crowdfunding industry report. 2015CF. Massolution, Pittsburgh, PA, United States Available online: https://www.smv.gob.pe/Biblioteca/temp/catalogacion/C8789.pdf (accessed on February 2021).
Barasinska, N., & Schäfer, D. (2014). Is Crowdfunding Different? Evidence on the Relation between Gender and Funding Success from a German Peer-to-Peer Lending Platform. German Economic Review, 15(4), 436–452. doi:10.1111/geer.12052.
Allison, T. H., Davis, B. C., Short, J. C., & Webb, J. W. (2015). Crowdfunding in a Prosocial Microlending Environment: Examining the Role of Intrinsic versus Extrinsic Cues. Entrepreneurship Theory and Practice, 39(1), 53–73. doi:10.1111/etap.12108.
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. doi:10.1016/j.jpubeco.2015.05.005.
Eniola, A. A., & Entebang, H. (2015). SME Firm Performance-Financial Innovation and Challenges. Procedia - Social and Behavioral Sciences, 195, 334–342. doi:10.1016/j.sbspro.2015.06.361.
JegelevičiŠ«tč—, S., & Valančienč—, L. (2015). Comparative Analysis of the Ways Crowdfunding is Promoted. Procedia - Social and Behavioral Sciences, 213, 268–274. doi:10.1016/j.sbspro.2015.11.536.
Kshetri, N. (2015). Success of Crowd-based Online Technology in Fundraising: An Institutional Perspective. Journal of International Management, 21(2), 100–116. doi:10.1016/j.intman.2015.03.004.
Turan, S. S. (2015). Financial Innovation - Crowdfunding: Friend or Foe? Procedia - Social and Behavioral Sciences, 195, 353–362. doi:10.1016/j.sbspro.2015.06.334.
Zilgalvis, P. (2014). The Need for an Innovation Principle in Regulatory Impact Assessment: The Case of Finance and Innovation in Europe. Policy & Internet, 6(4), 377–392. doi:10.1002/1944-2866.poi374.
Huang, T., & Zhao, Y. (2017). Revolution of securities law in the Internet Age: A review on equity crowd-funding. Computer Law & Security Review, 33(6), 802–810. doi:10.1016/j.clsr.2017.05.016.
Renwick, M. J., & Mossialos, E. (2017). Crowdfunding our health: Economic risks and benefits. Social Science & Medicine, 191, 48–56. doi:10.1016/j.socscimed.2017.08.035.
Harris, H. E., & Russo, P. (2015). The influence of social movements on space astronomy policy. Space Policy, 31, 1–4. doi:10.1016/j.spacepol.2014.08.009.
Wheat, R. E., Wang, Y., Byrnes, J. E., & Ranganathan, J. (2013). Raising money for scientific research through crowdfunding. Trends in Ecology & Evolution, 28(2), 71–72. doi:10.1016/j.tree.2012.11.001.
Dragojlovic, N., & Lynd, L. D. (2014). Crowdfunding drug development: the state of play in oncology and rare diseases. Drug Discovery Today, 19(11), 1775–1780. doi:10.1016/j.drudis.2014.06.019.
Agrawal, A., Catalini, C., & Goldfarb, A. (2015). Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions. Journal of Economics & Management Strategy, 24(2), 253–274. doi:10.1111/jems.12093.
Belleflamme, P., Omrani, N., & Peitz, M. (2015). The economics of crowdfunding platforms. Information Economics and Policy, 33, 11–28. doi:10.1016/j.infoecopol.2015.08.003.
Bruton, G., Khavul, S., Siegel, D., & Wright, M. (2015). New Financial Alternatives in Seeding Entrepreneurship: Microfinance, Crowdfunding, and Peer–to–Peer Innovations. Entrepreneurship Theory and Practice, 39(1), 9–26. doi:10.1111/etap.12143.
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. doi:10.1111/etap.12118.
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(9), 1606–1628. doi:10.1016/j.respol.2017.07.012.
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. doi:10.1111/etap.12272.
Butticè, V., Colombo, M. G., & Wright, M. (2017). Serial Crowdfunding, Social Capital, and Project Success. Entrepreneurship Theory and Practice, 41(2), 183–207. doi:10.1111/etap.12271.
Yu, S., Johnson, S., Lai, C., Cricelli, A., & Fleming, L. (2017). Crowdfunding and regional entrepreneurial investment: an application of the CrowdBerkeley database. Research Policy, 46(10), 1723–1737. doi:10.1016/j.respol.2017.07.008.
Cho, M., & Kim, G. (2017). A cross-cultural comparative analysis of crowdfunding projects in the United States and South Korea. Computers in Human Behavior, 72, 312–320. doi:10.1016/j.chb.2017.03.013.
Kang, L., Jiang, Q., & Tan, C.-H. (2017). Remarkable advocates: An investigation of geographic distance and social capital for crowdfunding. Information & Management, 54(3), 336–348. doi:10.1016/j.im.2016.09.001.
Kandhway, K., & Kuri, J. (2014). Optimal control of information epidemics modeled as Maki Thompson rumors. Communications in Nonlinear Science and Numerical Simulation, 19(12), 4135–4147. doi:10.1016/j.cnsns.2014.04.022.
Kim, T., Por, M. H., & Yang, S.-B. (2017). Winning the crowd in online fundraising platforms: The roles of founder and project features. Electronic Commerce Research and Applications, 25, 86–94. doi:10.1016/j.elerap.2017.09.002.
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. doi:10.1016/j.jbusres.2016.10.001.
Deutsch, J., Epstein, G. S., & Nir, A. (2015). Mind the Gap: Crowdfunding and the Role of Seed Money. Managerial and Decision Economics, 38(1), 53–75. doi:10.1002/mde.2739.
Allison, T. H., Davis, B. C., Webb, J. W., & Short, J. C. (2017). Persuasion in crowdfunding: An elaboration likelihood model of crowdfunding performance. Journal of Business Venturing, 32(6), 707–725. doi:10.1016/j.jbusvent.2017.09.002.
Parker, S. C. (2014). Crowdfunding, cascades and informed investors. Economics Letters, 125(3), 432–435. doi:10.1016/j.econlet.2014.10.001.
Zhao, Q., Chen, C.-D., Wang, J.-L., & Chen, P.-C. (2017). Determinants of backers' funding intention in crowdfunding: Social exchange theory and regulatory focus. Telematics and Informatics, 34(1), 370–384. doi:10.1016/j.tele.2016.06.006.
Pitschner, S., & Pitschner-Finn, S. (2014). Non-profit differentials in crowd-based financing: Evidence from 50,000 campaigns. Economics Letters, 123(3), 391–394. doi:10.1016/j.econlet.2014.03.022.
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2013). Individual crowdfunding practices. Venture Capital, 15(4), 313–333. doi:10.1080/13691066.2013.785151.
Meer, J. (2013). Effects of the Price of Charitable Giving: Evidence from an Online Crowdfunding Platform. National Bureau of Economic Research Working Paper Series, No. 19082. doi:10.3386/w19082
Gleasure, R. (2015). Resistance to crowdfunding among entrepreneurs: An impression management perspective. The Journal of Strategic Information Systems, 24(4), 219–233. doi:10.1016/j.jsis.2015.09.001.
Vasileiadou, E., Huijben, J. C. C. M., & Raven, R. P. J. M. (2016). Three is a crowd? Exploring the potential of crowdfunding for renewable energy in the Netherlands. Journal of Cleaner Production, 128, 142–155. doi:10.1016/j.jclepro.2015.06.028.
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. doi:10.1111/etap.12139.
Royal, C., & Windsor, G. S. S. (2014). Microfinance, Crowdfunding, and Sustainability: A Case Study of Telecenters in a South Asian Developing Country. Strategic Change, 23(7-8), 425–438. doi:10.1002/jsc.1987.
Macht, S., & Weatherston, J. (2015). Academic research on crowdfunders: What's been done and what's to come?. Strategic Change, 24(2), 191-205. doi:10.1002/jsc.2010.
Ashta, A., Assadi, D., & Marakkath, N. (2015). The Strategic Challenges of a Social Innovation: The Case of Rang De in Crowdfunding. Strategic Change, 24(1), 1–14. doi:10.1002/jsc.1994.
Cefkin, M., Anya, O., & Moore, R. (2014). A Perfect Storm? Reimagining Work in the Era of the End of the Job. Ethnographic Praxis in Industry Conference Proceedings, 2014(1), 3–19. doi:10.1111/1559-8918.01002.
Jian, L., & Usher, N. (2013). Crowd-Funded Journalism. Journal of Computer-Mediated Communication, 19(2), 155–170. doi:10.1111/jcc4.12051.
Hörisch, J. (2015). Crowdfunding for environmental ventures: an empirical analysis of the influence of environmental orientation on the success of crowdfunding initiatives. Journal of Cleaner Production, 107, 636–645. doi:10.1016/j.jclepro.2015.05.046.
Attuel-Mendès, L., Caseau, C., & Bonescu, M. (2014). Brand Identity Process of Financial Cooperatives: An Austrian Case. Strategic Change, 23(7-8), 493–506. doi:10.1002/jsc.1991.
Cason, T. N., & Zubrickas, R. (2017). Enhancing fundraising with refund bonuses. Games and Economic Behavior, 101, 218–233. doi:10.1016/j.geb.2015.11.001.
Cordova, A., Dolci, J., & Gianfrate, G. (2015). The Determinants of Crowdfunding Success: Evidence from Technology Projects. Procedia - Social and Behavioral Sciences, 181, 115–124. doi:10.1016/j.sbspro.2015.04.872.
Xu, B., Zheng, H., Xu, Y., & Wang, T. (2016). Configurational paths to sponsor satisfaction in crowdfunding. Journal of Business Research, 69(2), 915–927. doi:10.1016/j.jbusres.2015.06.040.
Stanko, M. A., & Henard, D. H. (2017). Toward a better understanding of crowdfunding, openness and the consequences for innovation. Research Policy, 46(4), 784–798. doi:10.1016/j.respol.2017.02.003.
Brown, T. E., Boon, E., & Pitt, L. F. (2017). Seeking funding in order to sell: Crowdfunding as a marketing tool. Business Horizons, 60(2), 189–195. doi:10.1016/j.bushor.2016.11.004.
Paulet, E., & Relano, F. (2017). Exploring the Determinants of Crowdfunding: The Influence of the Banking System. Strategic Change, 26(2), 175–191. doi:10.1002/jsc.2119.
Attuel-Mendès, L. (2017). The Different Ways of Collaboration between a Retail Bank and Crowdfunding. Strategic Change, 26(2), 213–225. doi:10.1002/jsc.2121.
Haji Gholam Saryazdi, A., Rajabzadeh Ghatari, A., Mashayekhi, A., & Hassanzadeh, A. (2019). Designing a qualitative system dynamics model of crowdfunding by document model building. Qualitative Research in Financial Markets, 12(2), 197–224. doi:10.1108/qrfm-07-2018-0082.
Saryazdi, A. H. G., Ghatari, A. R., Mashayekhi, A., & Hassanzadeh, A. (2020). The design of a system dynamics model of crowdfunding for support of new knowledge-based IT startups. International Journal of Simulation and Process Modelling, 15(5), 454-474. doi:10.1504/ijspm.2020.110920.
Langley, P., Lewis, S., McFarlane, C., Painter, J., & Vradis, A. (2020). Crowdfunding cities: Social entrepreneurship, speculation and solidarity in Berlin. Geoforum, 115, 11–20. doi:10.1016/j.geoforum.2020.06.014.
Taeuscher, K., Bouncken, R., & Pesch, R. (2021). Gaining Legitimacy by Being Different: Optimal Distinctiveness in Crowdfunding Platforms. Academy of Management Journal, 64(1), 149–179. doi:10.5465/amj.2018.0620.
Burtch, G., Ghose, A., & Wattal, S. (2012). An Empirical Examination of the Antecedents and Consequences of Investment Patterns in Crowd-Funded Markets. SSRN Electronic Journal. doi:10.2139/ssrn.1928168.
Ryan, G. (2010). Guidance notes on planning a systematic review. Galway: James Hardiman Library, National University of Ireland Galway, Galway, Ireland.
Khan, K. S., Kunz, R., Kleijnen, J., & Antes, G. (2003). Five steps to conducting a systematic review. JRSM, 96(3), 118–121. doi:10.1258/jrsm.96.3.118.
Zurynski, Yvonne. (2014). Writing a Systematic Literature Review: Resources for Students and Trainees: APSU. Available online: https://www.apsu.org.au/assets/Resources/Writing-a-Systematic-Literature-Review.pdf (accessed on December 2020).
Hodgson, A. M. (1992). Hexagons for systems thinking. European Journal of Operational Research, 59(1), 220–230. doi:10.1016/0377-2217(92)90019-6.
Santos, Arion de Castro Kurtz dos, Sampaio, Fabio Ferrentini, & Ferracioli, Laércio. (2001). An Experiment Using The Hexagon Technique With Semiquantitative Computer Modelling. The19th International Conference of The System Dynamics Society, Atlanta, Georgia, USA.
- This work (including HTML and PDF Files) is licensed under a Creative Commons Attribution 4.0 International License.
