Searching for angels: Identifying effective characteristics of successful crowdfunding campaigns

Rafiya Harun, Ben C.F. Choi, Jie Yu

Research output: Contribution to conferencePaperpeer-review

Abstract

Online crowd-funding is getting increasingly important to kick-start businesses and incubate innovations. While there are ample successful examples of crowd-funded campaigns, numerous fund-raising initiatives have failed. Evidence suggests that potential backers are typically deterred by information asymmetry, which naturally limits backers developing reliable understanding on crowd-funding campaigns. As a result, due to the highlighted uncertainty, backers are often dissuaded to commit support to projects. Drawing on the elaboration likelihood model (ELM) and the justice framework, this study identifies four information cues that impact on the formulation of risk perceptions, namely return tangibility, ease of identifiability, information relevance, and pitch transparency. Additionally, following ELM, this study proposes that the effect of informational cues on risk perception is moderated by risk propensity. This study proposes to conduct a scenario-based experiment to investigate the impact of various informational cues on risk perception formulation, which in turn influence likelihood to invest. Expected contributions are discussed.

Original languageEnglish
Publication statusPublished - 2017
Externally publishedYes
Event21st Pacific Asia Conference on Information Systems: Societal Transformation Through IS/IT, PACIS 2017 - Langkawi, Malaysia
Duration: 16 Jul 201720 Jul 2017

Conference

Conference21st Pacific Asia Conference on Information Systems: Societal Transformation Through IS/IT, PACIS 2017
Country/TerritoryMalaysia
CityLangkawi
Period16/07/1720/07/17

Keywords

  • Crowd-funding
  • Elaboration Likelihood Model
  • Justice Framework
  • Risk Propensity

ASJC Scopus subject areas

  • Information Systems

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