IDEAS home Printed from https://ideas.repec.org/a/rfe/zbefri/v40y2022i1p63-78.html
   My bibliography  Save this article

The dynamics of crowdfunding campaigns in the Middle East: Does social capital matter?

Author

Listed:
  • Marwan Mohamed Abdeldayem

    (College of Administrative Sciences, Applied Science University (ASU), 5055 Manama, Kingdom of Bahrain)

  • Saeed Hameed Al Dulaimi

    (College of Administrative Sciences, Applied Science University (ASU), 5055 Manama, Kingdom of Bahrain)

Abstract

The purpose of this study is to analyze the dynamics of crowdfunding campaigns in the Middle East and raise the question of “does social capital matter” in this respect? The study uses the Zoomaal.com platform as a case study for 2019 and 2020. Required data was collected from Zoomaal.com and conducted online semi- structured interviews with key people in control to further explore the crowdfunding practice in the selected Middle Eastern countries (i.e., Turkey, Egypt, Oman, Saudi Arabia, Bahrain, Kuwait, and UAE). The OLS robust standard error regression and logistic regression techniques were both utilized to test the study model. The findings reveal that social capital in the Middle East countries is very coherent and both structural dimension (DS) as measured by entrepreneurs’ interaction with the social media (such as Facebook and Instagram) and cognitive dimension (DC) as measured by the number of words that are composed by entrepreneurs in the Zoomaal.com platform has significant positive impacts on the crowdfunding campaign success. Moreover, we confirm our results to Zoomaal.com and conclude the main factors that influence the success or failure of a crowdfunding campaign in the Middle East.

Suggested Citation

  • Marwan Mohamed Abdeldayem & Saeed Hameed Al Dulaimi, 2022. "The dynamics of crowdfunding campaigns in the Middle East: Does social capital matter?," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 40(1), pages 63-78.
    • Handle: RePEc:rfe:zbefri:v:40:y:2022:i:1:p:63-78
    as

    Download full text from publisher

    File URL: https://www.efri.uniri.hr/upload/Zbornik%201_2022/02-Abdeldayem-2022-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Massimo G. Colombo & Chiara Franzoni & Cristina Rossi–Lamastra, 2015. "Internal Social Capital and the Attraction of Early Contributions in Crowdfunding," Entrepreneurship Theory and Practice, , vol. 39(1), pages 75-100, January.
    2. Matthias Pelster & Bastian Breitmayer & Tim Hasso, 2019. "Are cryptocurrency traders pioneers or just risk-seekers? Evidence from brokerage accounts," Papers 1906.11968, arXiv.org.
    3. Fehr, Dietmar & Rau, Hannes & Trautmann, Stefan T. & Xu, Yilong, 2020. "Inequality, fairness and social capital," European Economic Review, Elsevier, vol. 129(C).
    4. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "The Role of Social Capital in Financial Development," American Economic Review, American Economic Association, vol. 94(3), pages 526-556, June.
    5. Cai, Wanxiang & Polzin, Friedemann & Stam, Erik, 2021. "Crowdfunding and social capital: A systematic review using a dynamic perspective," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    6. Pelster, Matthias & Breitmayer, Bastian & Hasso, Tim, 2019. "Are cryptocurrency traders pioneers or just risk-seekers? Evidence from brokerage accounts," Economics Letters, Elsevier, vol. 182(C), pages 98-100.
    7. Christiaan Grootaert & Thierry Van Bastelar, 2002. "Understanding and Measuring Social Capital : A Multidisciplinary Tool for Practitioners," World Bank Publications - Books, The World Bank Group, number 14098.
    8. Marwan M. Abdeldayem & Doaa S. Sedeek, 2018. "Managerial Behavior and Capital Structure Decisions; Do Overconfidence, Optimism and Risk Aversion Matter?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(7), pages 925-945, July.
    9. Marwan M Abdeldayem & Doaa S Sedeek, 2018. "Managerial Behavior and Capital Structure Decisions; Do Overconfidence, Optimism and Risk Aversion Matter?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(7), pages 925-945.
    10. Silvio Vismara, 2016. "Equity retention and social network theory in equity crowdfunding," Small Business Economics, Springer, vol. 46(4), pages 579-590, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Massimiliano Barbi & Valentina Febo & Giancarlo Giudici, 2023. "Community-level social capital and investment decisions in equity crowdfunding," Small Business Economics, Springer, vol. 61(3), pages 1075-1110, October.
    2. Vincenzo Butticè & Diego Useche, 2022. "Crowdfunding to overcome the immigrant entrepreneurs’ liability of outsidership: the role of internal social capital," Small Business Economics, Springer, vol. 59(4), pages 1519-1540, December.
    3. Shneor, Rotem & Zhao, Liang & Fabian Michael Goedecke, Jann, 2023. "On relationship types, their strength, and reward crowdfunding backer behavior," Journal of Business Research, Elsevier, vol. 154(C).
    4. Fabrice Hervé & Elodie Manthé & Aurélie Sannajust & Armin Schwienbacher, 2019. "Determinants of individual investment decisions in investment‐based crowdfunding," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 46(5-6), pages 762-783, May.
    5. Cai, Wanxiang & Polzin, Friedemann & Stam, Erik, 2021. "Crowdfunding and social capital: A systematic review using a dynamic perspective," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    6. Douglas Cumming & Lars Hornuf & Moein Karami & Denis Schweizer, 2023. "Disentangling Crowdfunding from Fraudfunding," Journal of Business Ethics, Springer, vol. 182(4), pages 1103-1128, February.
    7. Silvio Vismara, 2018. "Information Cascades among Investors in Equity Crowdfunding," Entrepreneurship Theory and Practice, , vol. 42(3), pages 467-497, May.
    8. Vesa Pursiainen & Jan Toczynski, 2023. "Retail Investors’ Cryptocurrency Investments," Swiss Finance Institute Research Paper Series 23-51, Swiss Finance Institute.
    9. Bamieh, Omar & Cintolesi, Andrea, 2021. "Intergenerational transmission in regulated professions and the role of familism," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 857-879.
    10. Gemayel, Roland & Preda, Alex, 2021. "Performance and learning in an ambiguous environment: A study of cryptocurrency traders," International Review of Financial Analysis, Elsevier, vol. 77(C).
    11. Helen Bollaert & Gaël Leboeuf & Armin Schwienbacher, 2020. "The narcissism of crowdfunding entrepreneurs," Small Business Economics, Springer, vol. 55(1), pages 57-76, June.
    12. Berns, John P. & Jia, Yankun & Gondo, Maria, 2022. "Crowdfunding success in sustainability-oriented projects: An exploratory examination of the crowdfunding of 3D printers," Technology in Society, Elsevier, vol. 71(C).
    13. Fang, Xing, 2022. "Why we hide good deeds? The selfless and anonymous donation behavior in crowdfunding," Technology in Society, Elsevier, vol. 71(C).
    14. Johannes Wallmeroth & Peter Wirtz & Alexander Peter Groh, 2017. "Institutional Seed Financing, Angel Financing, and Crowdfunding of Entrepreneurial Ventures: A Literature Review," Working Papers hal-01527999, HAL.
    15. Sarah Borchers & Lee M. Dunham, 2022. "Tapping of the crowd: The effect of entrepreneur engagement on equity crowdfunding success," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 46(2), pages 324-346, April.
    16. Ziyang Li & Qianwei Ying & Yuying Chen & Xuehui Zhang, 2020. "Managerial risk appetite and asymmetry cost behavior: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(5), pages 4651-4692, December.
    17. Xiao, Dongliang & Lin, Zhenjia & Chen, Haoyong & Hua, Weiqi & Yan, Jinyue, 2024. "Windfall profit-aware stochastic scheduling strategy for industrial virtual power plant with integrated risk-seeking/averse preferences," Applied Energy, Elsevier, vol. 357(C).
    18. Thomas Clauss & Thomas Niemand & Sascha Kraus & Patrick Schnetzer & Alexander Brem, 2019. "Increasing Crowdfunding Success Through Social Media: The Importance Of Reach And Utilisation In Reward-Based Crowdfunding," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-30, May.
    19. Francis Kwaku Kuma & Mohd Effandi Bin Yusoff & Paul Kwasi Apreku-Djan, 2024. "A Synthesis of Crowdfunding Concepts in the Ghanaian Context: Crowdfunding Information Challenges in Ghana," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 435-460, March.
    20. Jörn Block & Lars Hornuf & Alexandra Moritz, 2018. "Which updates during an equity crowdfunding campaign increase crowd participation?," Small Business Economics, Springer, vol. 50(1), pages 3-27, January.

    More about this item

    Keywords

    Social capital; crowdfunding; crowdfunding campaign; social capital theory; Middle East;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G19 - Financial Economics - - General Financial Markets - - - Other
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfe:zbefri:v:40:y:2022:i:1:p:63-78. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Danijela Ujcic (email available below). General contact details of provider: https://edirc.repec.org/data/efrijhr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.