Dynamics of Social Influence in Online Crowdfunding
Refereed conference paper presented and published in conference proceedings

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AbstractCrowdfunding societies are comprised of two types of actors: project creator who proposes a project to be funded, and backers who provide financial support to the projects. A growing number of literature starts to explore social impact in crowdfunding and has identified the effects of social influence from the creator’s perspective. That being said, which one is more effective, social influence from creator’s network or from backer’s network? Also, previous literature assumes a time-invariant, direct effect of social influence during the entire fundraising period. This paper aims to make a dynamic comparison of social influence between creator’s network and backer’s network using a unique data set from reward-based crowdfunding platform and a social networking site. Results show that social influences from creator’s network and backer’s network disclose distinctively different dynamic patterns. Social influence from creator’s network is more stable and moderate, while social influence from backer’s network is more volatile but plays a more important role in increasing the raised amount. Besides, the dynamic effects of social influence from backer’s network demonstrate a clear U shape pattern, indicating a strong social impact of backers’ influence at the beginning as well as the end of the project. These findings shed light on the understanding of the dynamic aspect of social influence in crowdfunding and provide fruitful managerial insights in answering to whom and when a project can receive more financing.
All Author(s) ListYiwei Li, Yuho Chung, Naiqing Du, Jianmin Jia
Name of Conference39th Annual ISMS Marketing Science Conference 2017
Start Date of Conference07/06/2017
End Date of Conference10/06/2017
Place of ConferenceLos Angeles, CA
Country/Region of ConferenceUnited States of America
LanguagesEnglish-United States

Last updated on 2018-15-05 at 11:03