Publication Type

Journal Article

Version

acceptedVersion

Publication Date

6-2018

Abstract

We assess the relative importance of project, product category, entrepreneur, and location effects on reward-based crowdfunding success. Applying variance decomposition analysis to a sample of 98,336 crowdfunding projects launched between May 2009 and May 2014 on the Kickstarter platform, we find that agency factors, specifically the project and entrepreneur effects, explain the highest relative variance (over 80% of total variance) across three crowdfunding success outcomes – pledge amount, number of backers, and funding success. Structural factors, specifically product category and location effects, have lower but still significant effects. Our study extends prior variance decomposition studies in strategy and entrepreneurship research by incorporating location effects and examining the nascent stage of firm formation. It also contributes to crowdfunding research by providing a systematic framework to compare key determinants of reward-based crowdfunding outcomes. The findings are of practical relevance to aspiring entrepreneurs seeking funding through reward-based crowdfunding platforms.

Keywords

entrepreneurship, Crowdfunding, variance decomposition analysis, founders, venture financing

Discipline

Entrepreneurial and Small Business Operations | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Venture Capital

Volume

20

Issue

3

First Page

285

Last Page

307

ISSN

1369-1066

Identifier

10.1080/13691066.2018.1480267

Publisher

Taylor & Francis (Routledge): SSH Titles

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1080/13691066.2018.1480267

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