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Motivating IT-Mediated Crowds: The Effect of Goal Setting on Project Performance in Online Crowdfunding

Author

Listed:
  • Zhuoxin Li

    (Carroll School of Management, Boston College, 140 Commonwealth Ave, Chestnut Hill, MA 02467)

  • Sirkka L. Jarvenpaa

    (McCombs School of Business, The University of Texas at Austin, 2110 Speedway Stop B6500, Austin, TX, 78712)

Abstract

In traditional organizations, stretch goals - difficult and seemingly unattainable goals - have been much debated for their paradoxical effects. Recently, their use as a managerial instrument in IT-mediated crowds has increased. Using online crowdfunding on Kickstarter as an example, we investigate how the use of stretch goals influences project performance. Empirical results show that the use of stretch goals is associated with better project funding performance. Such positive effect is even stronger for projects with higher levels of community engagement. However, stretch goals are less effective in project categories where stretch goals are less novel. Our empirical results also reveal that the use of stretch goals significantly increases a project’s likelihood of delivery delay. These results shed light on the potential dark side of using stretch goals in IT-mediated crowds.

Suggested Citation

  • Zhuoxin Li & Sirkka L. Jarvenpaa, 2015. "Motivating IT-Mediated Crowds: The Effect of Goal Setting on Project Performance in Online Crowdfunding," Working Papers 15-07, NET Institute.
    • Handle: RePEc:net:wpaper:1507
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    File URL: http://www.netinst.org/Li_Jarvenpaa_15-07.pdf
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    References listed on IDEAS

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    Cited by:

    1. Anna Prisco & Valerio Muto & Ciro Troise & Mario Tani, 2022. "How to Engage the Crowds to Create Value? Evidence from the Pathfinder Arena Case," Sustainability, MDPI, vol. 14(7), pages 1-22, April.

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    More about this item

    Keywords

    goal setting; stretch goals; IT-mediated crowds; motivation; crowdfunding; online community; engagement;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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