Understanding the Dynamic Interplay of Social Buzz and Contribution Behavior within and between Online Platforms

Evidence from Crowdfunding

Ferdinand Thies, Michael Wessel, Alexander Benlian

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

Abstract

Motivated by the growing interconnection between online platforms, we examine the dynamic interplay between social buzz and contribution behavior in the crowdfunding context. Since the utility of crowdfunding projects is usually difficult to ascertain, prospective backers draw on quality signals, such as social buzz and prior-contribution behavior, to make their funding decisions. We employ the panel vector autoregression (PVAR) methodology to investigate both intra- and cross-platform effects based on data collected from three platforms: Indiegogo, one of the largest crowdfunding platforms on the web, Twitter and Facebook. Our results show a positive influence of social buzz on project backing, but a negative relationship in the reverse direction. Furthermore, we observe strong positive feedback cycles within each platform. Our results are supplemented by split-sample analyses for project orientation (Social, Cause and Entrepreneurial) and project success (Winners vs. Losers), in which Facebook shares were identified as a critical success factor.
Original languageEnglish
Title of host publicationProceedings of the 35th International Conference on Information Systems. ICIS 2014 : Social Media and Digital Collaborations
EditorsElena Karahanna, Ananth Srinivasan, Bernard Tan
Number of pages18
Place of PublicationAtlanta, GA
PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
Publication date2014
Publication statusPublished - 2014
Externally publishedYes
EventThe 35th International Conference on Information Systems. ICIS 2014: Building a Better World through Information Systems - The University of Auckland Business School, Auckland, New Zealand
Duration: 14 Dec 201417 Dec 2014
Conference number: 35
http://icis2014.aisnet.org/

Conference

ConferenceThe 35th International Conference on Information Systems. ICIS 2014
Number35
LocationThe University of Auckland Business School
CountryNew Zealand
CityAuckland
Period14/12/201417/12/2014
Internet address
SeriesProceedings of the International Conference on Information Systems
ISSN0000-0033

Keywords

  • Social media
  • Electronic word-of-mouth
  • Social buzz
  • Contribution behavior
  • Informational cascades
  • Crowdfunding
  • Panel vector autoregression

Cite this

Thies, F., Wessel, M., & Benlian, A. (2014). Understanding the Dynamic Interplay of Social Buzz and Contribution Behavior within and between Online Platforms: Evidence from Crowdfunding. In E. Karahanna, A. Srinivasan, & B. Tan (Eds.), Proceedings of the 35th International Conference on Information Systems. ICIS 2014: Social Media and Digital Collaborations Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). Proceedings of the International Conference on Information Systems
Thies, Ferdinand ; Wessel, Michael ; Benlian, Alexander. / Understanding the Dynamic Interplay of Social Buzz and Contribution Behavior within and between Online Platforms : Evidence from Crowdfunding. Proceedings of the 35th International Conference on Information Systems. ICIS 2014: Social Media and Digital Collaborations. editor / Elena Karahanna ; Ananth Srinivasan ; Bernard Tan. Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2014. (Proceedings of the International Conference on Information Systems).
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abstract = "Motivated by the growing interconnection between online platforms, we examine the dynamic interplay between social buzz and contribution behavior in the crowdfunding context. Since the utility of crowdfunding projects is usually difficult to ascertain, prospective backers draw on quality signals, such as social buzz and prior-contribution behavior, to make their funding decisions. We employ the panel vector autoregression (PVAR) methodology to investigate both intra- and cross-platform effects based on data collected from three platforms: Indiegogo, one of the largest crowdfunding platforms on the web, Twitter and Facebook. Our results show a positive influence of social buzz on project backing, but a negative relationship in the reverse direction. Furthermore, we observe strong positive feedback cycles within each platform. Our results are supplemented by split-sample analyses for project orientation (Social, Cause and Entrepreneurial) and project success (Winners vs. Losers), in which Facebook shares were identified as a critical success factor.",
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Thies, F, Wessel, M & Benlian, A 2014, Understanding the Dynamic Interplay of Social Buzz and Contribution Behavior within and between Online Platforms: Evidence from Crowdfunding. in E Karahanna, A Srinivasan & B Tan (eds), Proceedings of the 35th International Conference on Information Systems. ICIS 2014: Social Media and Digital Collaborations. Association for Information Systems. AIS Electronic Library (AISeL), Atlanta, GA, Proceedings of the International Conference on Information Systems, The 35th International Conference on Information Systems. ICIS 2014, Auckland, New Zealand, 14/12/2014.

Understanding the Dynamic Interplay of Social Buzz and Contribution Behavior within and between Online Platforms : Evidence from Crowdfunding. / Thies, Ferdinand; Wessel, Michael; Benlian, Alexander.

Proceedings of the 35th International Conference on Information Systems. ICIS 2014: Social Media and Digital Collaborations. ed. / Elena Karahanna; Ananth Srinivasan; Bernard Tan. Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2014. (Proceedings of the International Conference on Information Systems).

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

TY - CHAP

T1 - Understanding the Dynamic Interplay of Social Buzz and Contribution Behavior within and between Online Platforms

T2 - Evidence from Crowdfunding

AU - Thies, Ferdinand

AU - Wessel, Michael

AU - Benlian, Alexander

PY - 2014

Y1 - 2014

N2 - Motivated by the growing interconnection between online platforms, we examine the dynamic interplay between social buzz and contribution behavior in the crowdfunding context. Since the utility of crowdfunding projects is usually difficult to ascertain, prospective backers draw on quality signals, such as social buzz and prior-contribution behavior, to make their funding decisions. We employ the panel vector autoregression (PVAR) methodology to investigate both intra- and cross-platform effects based on data collected from three platforms: Indiegogo, one of the largest crowdfunding platforms on the web, Twitter and Facebook. Our results show a positive influence of social buzz on project backing, but a negative relationship in the reverse direction. Furthermore, we observe strong positive feedback cycles within each platform. Our results are supplemented by split-sample analyses for project orientation (Social, Cause and Entrepreneurial) and project success (Winners vs. Losers), in which Facebook shares were identified as a critical success factor.

AB - Motivated by the growing interconnection between online platforms, we examine the dynamic interplay between social buzz and contribution behavior in the crowdfunding context. Since the utility of crowdfunding projects is usually difficult to ascertain, prospective backers draw on quality signals, such as social buzz and prior-contribution behavior, to make their funding decisions. We employ the panel vector autoregression (PVAR) methodology to investigate both intra- and cross-platform effects based on data collected from three platforms: Indiegogo, one of the largest crowdfunding platforms on the web, Twitter and Facebook. Our results show a positive influence of social buzz on project backing, but a negative relationship in the reverse direction. Furthermore, we observe strong positive feedback cycles within each platform. Our results are supplemented by split-sample analyses for project orientation (Social, Cause and Entrepreneurial) and project success (Winners vs. Losers), in which Facebook shares were identified as a critical success factor.

KW - Social media

KW - Electronic word-of-mouth

KW - Social buzz

KW - Contribution behavior

KW - Informational cascades

KW - Crowdfunding

KW - Panel vector autoregression

KW - Social media

KW - Electronic word-of-mouth

KW - Social buzz

KW - Contribution behavior

KW - Informational cascades

KW - Crowdfunding

KW - Panel vector autoregression

M3 - Book chapter

BT - Proceedings of the 35th International Conference on Information Systems. ICIS 2014

A2 - Karahanna, Elena

A2 - Srinivasan, Ananth

A2 - Tan, Bernard

PB - Association for Information Systems. AIS Electronic Library (AISeL)

CY - Atlanta, GA

ER -

Thies F, Wessel M, Benlian A. Understanding the Dynamic Interplay of Social Buzz and Contribution Behavior within and between Online Platforms: Evidence from Crowdfunding. In Karahanna E, Srinivasan A, Tan B, editors, Proceedings of the 35th International Conference on Information Systems. ICIS 2014: Social Media and Digital Collaborations. Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). 2014. (Proceedings of the International Conference on Information Systems).