Publication Type
Journal Article
Version
publishedVersion
Publication Date
1-2021
Abstract
Crowdfunding platforms serve to connect project creators and backers. Previous research has explored several project and platform determinants that impact crowdfunding outcomes. However, there has been limited research on these determinants at an individual level. Our paper addresses how backers may influence the outcomes of projects in crowdfunding platforms. We explore several methods commonly used in the industry to identify influence and show that centrality measures through a backer affiliation network best exemplifies influence. Using data from Kickstarter, we construct a weighted backer network based on 52,678 common projects backed by 11,134 backers. Controlling for digital media mentions and project quality, we find evidence that backers in central positions within the network have a positive impact on multiple project outcomes such as the project success rates, amount of funds raised, speed of reaching the crowdfunding goal as well as the number of backers contributing to the project. These findings are replicated and reinforced by using data from a different crowdfunding platform using the entire backer network based on 1095 projects backed by 87,896 backers. Several robustness tests are used to validate these results.
Keywords
Crowdfunding, Digital strategy, Social influence, Social networks
Discipline
E-Commerce | Finance and Financial Management | Marketing | Technology and Innovation
Research Areas
Marketing
Publication
Social Networks
Volume
64
First Page
158
Last Page
172
ISSN
0378-8733
Identifier
10.1016/j.socnet.2020.09.005
Publisher
Elsevier
Citation
TAN, Yee Heng and REDDY, Srinivas K..
Crowdfunding digital platforms: Backer networks and their impact on project outcomes. (2021). Social Networks. 64, 158-172.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6605
Copyright Owner and License
Publisher
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.socnet.2020.09.005
Included in
E-Commerce Commons, Finance and Financial Management Commons, Marketing Commons, Technology and Innovation Commons