I’ve Got Your Back: How Social Support Fuels Crowdfunding Relaunch Success
Prof. Xiaochen LIU
Assistant Professor,
Department of Information Management,
Beijing Jiaotong University
The world of crowdfunding has been besieged by fierce competition, leading to a high failure rate. Given the dedication of fundraisers and the inherent adaptability of crowdfunding projects in the digital sphere, allowing for their cost-effective refinement, adjustment, and reactivation, the crowdfunding relaunch has arisen as a noteworthy new trend. Despite the pressing need for comprehension of crowdfunding relaunches, limited research has been conducted thus far. To address this research gap, our study aims to uncover and provide practical evidence on the critical factors and pathways that lead to successful crowdfunding relaunches.
Utilizing data derived from 2,296 technology-related business ideas that experienced initial failures and subsequent relaunch attempts on the Kickstarter platform, we revealed how social support from backers through ICTs plays a role within the distinctive socio-cultural context of crowdfunding. Specifically, we found how the informational and emotional support from backers impacts fundraisers’ problemistic search behavior (pace and distance) when dealing with initial failures, thereby driving the success of crowdfunding relaunches. Additional analysis uncovers that the severity of previous failures can moderate the impact intensity of various pathways.
This study offers valuable insights into the crowdfunding literature, problemistic search theory, and social support theory, while also providing practical guidance for fostering the crowdfunding ecosystem.
The world of crowdfunding has been besieged by fierce competition, leading to a high failure rate. Given the dedication of fundraisers and the inherent adaptability of crowdfunding projects in the digital sphere, allowing for their cost-effective refinement, adjustment, and reactivation, the crowdfunding relaunch has arisen as a noteworthy new trend. Despite the pressing need for comprehension of crowdfunding relaunches, limited research has been conducted thus far. To address this research gap, our study aims to uncover and provide practical evidence on the critical factors and pathways that lead to successful crowdfunding relaunches.
Utilizing data derived from 2,296 technology-related business ideas that experienced initial failures and subsequent relaunch attempts on the Kickstarter platform, we revealed how social support from backers through ICTs plays a role within the distinctive socio-cultural context of crowdfunding. Specifically, we found how the informational and emotional support from backers impacts fundraisers’ problemistic search behavior (pace and distance) when dealing with initial failures, thereby driving the success of crowdfunding relaunches. Additional analysis uncovers that the severity of previous failures can moderate the impact intensity of various pathways.
This study offers valuable insights into the crowdfunding literature, problemistic search theory, and social support theory, while also providing practical guidance for fostering the crowdfunding ecosystem.
Assistant Professor,
Innovation and Information Management,
HKU Business School
