Abstract
Managing platform ecosystems requires the providers to maintain a delicate balance between retaining control and devolving autonomy to complementors in order to encourage contribution and innovation. In this study, we make use of a policy change that abolished the previously mandatory approval process for campaigns on Kickstarter, one of the dominant reward-based crowdfunding platforms. Analyzing a total of 67,384 Kickstarter campaigns under conditions of a natural experiment, we find that abolishing the input control was a double-edged sword for Kickstarter’s ecosystem: While the average platform revenue increased after the policy change, it became more volatile, and while project diversity increased, average campaign quality decreased. Project creators are now confronted with an even higher level of competition, while backers face greater uncertainties about campaign quality, which shifts their focus to alternative quality signals. The new strategy might threaten Kickstarter’s unique status as a high-quality platform in the striving business of crowdfunding.
Original language | English |
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Title of host publication | Proceedings of the Thirty Sixth International Conference on Information Systems. ICIS 2015 : Exploring the Information Frontier |
Editors | Traci Carte, Armin Heinzl, Cathy Urquhart |
Number of pages | 19 |
Place of Publication | Atlanta, GA |
Publisher | Association for Information Systems. AIS Electronic Library (AISeL) |
Publication date | 2015 |
ISBN (Print) | 9780996683111 |
Publication status | Published - 2015 |
Externally published | Yes |
Event | 2015 International Conference on Information Systems: Exploring the Information Frontier, ICIS 2015: Exploring the Information Frontier - Fort Worth Convention Center, Fort Worth, Texas, United States Duration: 13 Dec 2015 → 16 Dec 2015 Conference number: 36 http://icis2015.aisnet.org/ |
Conference
Conference | 2015 International Conference on Information Systems: Exploring the Information Frontier, ICIS 2015 |
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Number | 36 |
Location | Fort Worth Convention Center |
Country/Territory | United States |
City | Fort Worth, Texas |
Period | 13/12/2015 → 16/12/2015 |
Internet address |
Series | Proceedings of the International Conference on Information Systems |
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ISSN | 0000-0033 |
Keywords
- Crowdfunding
- Platform ecosystems
- Platform openness
- Policy change
- Input control
- Two-sided markets
- Natural experiment