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

Zhuoxin Li () and Sirkka L. Jarvenpaa ()
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Sirkka L. Jarvenpaa: McCombs School of Business, The University of Texas at Austin, 2110 Speedway Stop B6500, Austin, TX, 78712

No 15-07, Working Papers from NET Institute

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.

Keywords: goal setting; stretch goals; IT-mediated crowds; motivation; crowdfunding; online community; engagement (search for similar items in EconPapers)
JEL-codes: C81 D12 L26 L86 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2015-09
New Economics Papers: this item is included in nep-ban, nep-ict and nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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