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Do social network crowds help fundraising campaigns? Effects of social influence on crowdfunding performance

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  • Liu, Yang
  • Chen, Yuan
  • Fan, Zhi-Ping

Abstract

The fundraising of crowdfunding campaigns is potentially influenced by the founder’s digital reputation and project-sharing cascades via social networks. Our paper empirically examines the effects of this social influence on crowdfunding performance, specifically looking at Jingdong Crowdfunding and Weibo in China. Our results show that the social influence of the founder’s digital reputation in terms of the number of followers and identity status, as well as of project-sharing cascades are positively associated with crowdfunding performance. We also find a quadratic effect of social network post volume, which positively impacts crowdfunding performance under a certain threshold and negatively affects it above that threshold. Additionally, we further analyze the impact of social influence on the number of funders and low-sum funders respectively and find social influence tends to bring more social network crowds to engage in crowdfunding who are more likely to contribute a small amount. Our study demonstrates that the social network integration of crowdfunding can leverage crowdfunding performance.

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  • Liu, Yang & Chen, Yuan & Fan, Zhi-Ping, 2021. "Do social network crowds help fundraising campaigns? Effects of social influence on crowdfunding performance," Journal of Business Research, Elsevier, vol. 122(C), pages 97-108.
    • Handle: RePEc:eee:jbrese:v:122:y:2021:i:c:p:97-108
    DOI: 10.1016/j.jbusres.2020.08.052
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