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How to create an engagement-friendly environment in reward-based crowdfunding?

Author

Listed:
  • Bielicki Marcin

    (Poznań University of Economics and Business, Department of Investments and Financial Markets Institute of Finance al. Niepodległości 10, 61-875 Poznań, Poland)

  • Rydzewski Rafał

    (University of Economics in Katowice, Faculty of Management Department of Enterprise Management ul. 1 Maja 50, 40-287 Katowice, Poland)

Abstract

Crowdfunding appears to be an innovative way of fundraising various projects. Although it is a relatively new and unique way of financing, competition for potential backers increases every year. While recent works have explored the role of engagement and involvement in crowdfunding, there is still a lack of understanding of how creators can stimulate backers’ activity. Therefore the aim of this paper is to identify and classify the methods used for crowdfunding by the top creators to boost and maintain backer engagement. Drawing from the Theoretical Model of Customer Engagement and Theory of Intrinsically Motivating Instruction, we propose a theoretical model that is backer engagement-based. It presents the unique role of involvement and participation in engagement and its interrelationship with value and community involvement. We investigate the top 30 most funded campaigns on Kickstarter in the tabletop games category. Based on our cross-case study, we identify and categorise tactics that create engagement-friendly environments. Our findings suggest that over time creators tend to focus on shorter but more dynamic campaigns with the higher engagement of backers. The creators of the best campaigns use similar tactics that affect both engagement and involvement. The important but often ignored factor that influences engagement is social interaction.

Suggested Citation

  • Bielicki Marcin & Rydzewski Rafał, 2022. "How to create an engagement-friendly environment in reward-based crowdfunding?," Central European Economic Journal, Sciendo, vol. 9(56), pages 38-55, January.
    • Handle: RePEc:vrs:ceuecj:v:9:y:2022:i:56:p:38-55:n:2
    DOI: 10.2478/ceej-2022-0003
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    References listed on IDEAS

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    More about this item

    Keywords

    crowdfunding; entrepreneurship; involvement; crowdsourcing; engagement;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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