The Role of Project Owners' and Potential Backers' Implicit Social Ties in Crowdfunding Project Success

Jayesh Prakash Gupta *, Hongxiu Liu, Hannu Kärkkäinen, Raghava Rao Mukkamala

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

34 Downloads (Pure)

Abstract

Purpose:
In this study, the authors sought to investigate how the implicit social ties of both project owners and potential backers are associated with crowdfunding project success.

Design/methodology/approach:
Drawing on social ties theory and factors that affect crowdfunding success, in this research, the authors developed a model to study how project owners' and potential backers' implicit social ties are associated with crowdfunding projects' degrees of success. The proposed model was empirically tested with crowdfunding data collected from Kickstarter and social media data collected from Twitter. The authors performed the test using an ordinary least squares (OLS) regression model with fixed effects.

Findings:
The authors found that project owners' implicit social ties (specifically, their social media activities, degree centrality and betweenness centrality) are significantly and positively associated with crowdfunding projects' degrees of success. Meanwhile, potential project backers' implicit social ties (their social media activities and degree centrality) are negatively associated with crowdfunding projects' degrees of success. The authors also found that project size moderates the effects of project owners' social media activities on projects' degrees of success.

Originality/value:
This work contributes to the literature on crowdfunding by investigating how the implicit social ties of both potential backers and project owners on social media are associated with crowdfunding project success. This study extends the previous research on social ties' roles in explaining crowdfunding project success by including implicit social ties, while the literature explored only explicit social ties.
Original languageEnglish
JournalInternet Research
Volume34
Issue number7
Pages (from-to)1-23
Number of pages23
ISSN1066-2243
DOIs
Publication statusPublished - 2023

Keywords

  • Crowdfunding
  • Implicit social ties
  • Project success
  • Project owner
  • Project backer
  • Project size
  • Kickstarter
  • Twitter
  • Social media

Cite this