Success of Crowd-based Online Technology in Fundraising: An Institutional Perspective

Nir Kshetri

Journal of International Management, 2015, vol. 21, issue 2, 100-116

Abstract: The use of crowd-based online technology for raising funds is gaining popularity and credibility. This paper seeks to provide a better understanding of the effects of formal and informal institutions on the success of a crowdfunding project. It also analyzes how the effects of different types of institutions are likely to vary across the four different types of crowdfunding projects: (1) crowdlending, (2) crowdequity, (3) reward-based crowdfunding and (4) donation-based crowdfunding. A practical implication of this work is that the ease with which entrepreneurs and other types of fundraisers can raise money via crowdfunding platforms to fund a project depends upon the nature of formal and informal institutions in the economy. A theory of crowdfunding is proposed that explains these developing relationships.

Keywords: Institutions; Crowd-based online technology; Crowdfunding; Legitimacy; Philanthropy; Thin trust; Trade associations (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intman:v:21:y:2015:i:2:p:100-116

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DOI: 10.1016/j.intman.2015.03.004

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