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Fulfilled expectations equilibrium  

Fulfilled expectations equilibrium  

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The basic idea of crowdfunding is for an entrepreneur to raise external finance from a large audience (the "crowd"), where each individual provides a very small amount, instead of soliciting a small group of sophisticated investors. The entrepreneur uses her social networks and established platforms on the Internet to directly interact with the cro...

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... equation is represented in Figure 1: solutions are the intersection between the 45 • line (n c ) and the function 1 + ∆ σ − K δσnc , which is increasing and concave in n c . Figure 1 depicts the latter function for different values of ∆. We observe that an intersection exists as long as ...
Context 2
... equation is represented in Figure 1: solutions are the intersection between the 45 • line (n c ) and the function 1 + ∆ σ − K δσnc , which is increasing and concave in n c . Figure 1 depicts the latter function for different values of ∆. We observe that an intersection exists as long as ...
Context 3
... shown in Figure 1, this value is strictly smaller than unity for ∆ < K/δ. ...

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Citations

... Digital artifacts differ from physical entities along several dimensions. For instance, due to their non-material nature, digital artifacts can be reproduced with very low marginal cost and are non-rival in consumption (Belleflamme et al., 2014). As digital artifacts are typically decoupled from their related physical entity (e.g., a mobile app is compatible with multiple smartphones), they can, continuously and systematically, be modified and updated even after being introduced to the market (Kallinikos et al., 2013). ...
Article
The presentation of a prototype is pervasive when technology entrepreneurs pitch to potential resource providers. Yet, we know little about how the fidelity of a prototype—the degree to which it approximates the final product—can affect funding decisions. We study the relationship between prototype fidelity and resource acquisition of nascent technology ventures in online crowdfunding. Based on the community logic under which crowdfunding operates and the diverse motivations of funders to participate, we develop the seemingly counterintuitive idea that moderate prototype fidelity is more effective in gaining support from funders than high prototype fidelity. Across our three empirical studies, we find support for the hypothesis that prototype fidelity has an inverted U-shaped relationship with crowdfunding performance. This relationship is moderated by the materiality of the offered rewards and the quality of the prototype presentation delivered through the online interface.
... Crowdfunding is a relatively new financial tool, with high potential for funding projects in the tourism and hospitality industry that has been largely leveraged by the internet and information and communication technologies. According to Belleffiamme et al. [4], the concept of CF involves an open invitation, essentially through the internet, to provide financial resources, either in the form of donations (without rewards) or in exchange for some sort of reward and/or voting right, to support initiatives for specific purposes. ...
... For instance, increasing the awareness of a tourism and hospitality project on social media or boosting the possibility of gathering funds for a social cause. Efforts by entrepreneurial individuals and groups-cultural, social, and for-profit-to fund their ventures by drawing on relatively small contributions from a relatively large number of individuals using the internet, without standard financial intermediaries [4] Open call to provide financial resources that mostly takes place on an Internet-based platform and links fundraisers to funders with the aim of funding a particular campaign by typically many funders. In these definitions, the important characteristics of this new financial mechanism are emphasized. ...
... The backers provide funds to individuals, projects, or organizations in exchange for special perks, early editions of new products, appreciation tokens, or "community benefits" [4] Kickstarter.com Indiegogo.com ...
Chapter
Young entrepreneurs, especially the most qualified students, have recently begun to play a new role in the economy and to emerge as protagonists of new business projects, mainly focusing on market niches. Despite the growth that crowd-funding (CF) has experienced in recent years all over the world, it is a tool still under-exploited by young entrepreneurs. This communication aims to understand the behavior of potential young entrepreneurs toward CF and to analyze their predisposition to use this source of financing for starting a new venture in the tourism and hospitality industry. To achieve this goal, this communication uses a quantitative approach with primary data collected through an online survey. The results of the study indicate that potential young entrepreneurs have a low predisposition to use CF as a funding mechanism. This behavior is influenced by the characteristics of potential entrepreneurs, especially gender and past experiences in creating organizations and using collaborative financing.
... Na podstawie rozważań teoretycznych, własnych obserwacji i doświadczeń oraz prowadzonych badań empirycznych sformułowano główną hipotezę badawczą 25 : Media społecznościowe 26 są istotne dla kształtowania innowacyjnych modeli biznesu przedsiębiorstw usług profesjonalnych 27 . Na tym etapie można postawić jej zarzut oczywistości, jednak w rozdziale 4. szczegółowo opisano politykę jej użycia (m.in. ...
... • post w mediach społecznościowych (ang. social media post), który utworzono 26 ...
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W ostatniej dekadzie radykalnie wzrosło zainteresowanie koncepcją modeli biznesu z uwagi na przekonanie, że o sukcesie w biznesie w pierwszej kolejności decyduje zmonetyzowana uwaga klienta, a nie sam produkt czy zastosowana technologia. Żyjemy w czasach, w których budowanie produktu jest łatwiejsze i tańsze niż kiedykolwiek wcześniej, a podaż samych usług jest największa w historii. Jednocześnie, żeby pochwalić się sukcesem, trzeba z największą uwagą podejść zarówno do produktu, jak i do modelu biznesu, za pomocą którego produkt znajdzie klientów. Parafrazując Ash Maurya: „Model biznesu, a nie usługa, to usługa. To model biznesu kupują inwestorzy i klienci, a nie oferowane im rozwiązanie”. Koncepcja ta jest szczególnie interesująca w kontekście projektowania, skalowania, okresów przejściowych i planowania zmian o znaczeniu strategicznym. Samo modelowanie, weryfikacja i prototypowanie są permanentnym wyzwaniem każdej działalności twórczej. Każdy architekt, lekarz czy księgowy zaczyna edukację od modelu. Mimo że architektów uczy się posługiwania makietami, przedsiębiorców szkoli się głównie w działalności operacyjnej. Starają się i są innowacyjni, ale zbyt rzadko posługują się narzędziami o cechach modeli. Koncepcja modeli biznesu jest narzędziem poręcznym daleko bardziej niż biznesplan i bardziej zrozumiałym. Ponadto projektowanie modeli biznesu tym różni się od biznesplanu, że projekt nie zawiera elementu akceptacji, ale stanowi przygotowanie planu, szkic zawierający kilka wariantów ewentualnych planów i opisujący różne sposoby działania. Projektant wyznacza cele i omawia środki prowadzące w danych okolicznościach do ich realizacji. Skoncentrowanie się na usługach profesjonalnych jest obiecującym i ciekawym przedmiotem analizy z zakresu modeli biznesu. Badanie modeli biznesu tych przedsiębiorstw wpisuje się w coraz wyraźniejszy trend nadawania tym usługom wzorcowego znaczenia w kategorii przedsiębiorstw opartych na wiedzy. Usługi profesjonalne to właściwie konglomerat wzorowych postaw zarządzania wiedzą, w szczególności wobec uczenia się, budowania relacji, autokoncepcji, poczucia tożsamości, kompetencji i stanu poznania. Zrozumienie konstrukcji przedsiębiorstw profesjonalnych ma znaczenie także dla pozostałych rodzajów usług. Przedsiębiorstwa tej klasy opierają swój rozwój na wiedzy i rosną zdecydowanie najszybciej we współczesnej gospodarce. Problematyka projektowania innowacyjnych modeli biznesu usług z uwzględnieniem potencjału mediów społecznościowych jest nadal aktualna. W minionych czasach budowa i prowadzenie przedsiębiorstwa wymagały zaangażowania różnego rodzaju interesariuszy oraz dostępu do kapitału, mediów masowych, kanałów dystrybucji itd. Dzisiaj każdy, kto ma dostęp do internetu może zwiększyć swój „koszyk zasobów” poprzez crowdsourcing i crowdfunding, czego dobitnym przykładem są wdrożenia chmur obliczeniowych i oprogramowania open source. Przy tym na rynek pracy wkroczyło pokolenie milenialsów i post-milenialsów. Ta generacja charakteryzuje się przede wszystkim tym, że „egzystuje” w świecie nowych technologii, ich światem są media społecznościowe, a za decyzją zakupu nie stoi już marka, ale kultura i wartości, jakie przejawia dane przedsiębiorstwo. Pokolenie C uczy się codziennie, w szczególności konfigurując swoje sieci społecznościowe jako wirtualne uniwersytety.
... Entrepreneurs use strategies that provide capable signals to get positive results from potential investors or customers. The crowdfunding literature also explores strategies for better fundraising results during crowdfunding campaigns (Ahlers et al., 2015;Belleflamme et al., 2014;Steigenberger and Wilhelm, 2018;Davies and Giovannetti, 2018;Song et al., 2019) using this theoretical background. ...
... Crowdfunding has become popular as an early-stage funding method for the idea realization process. In crowdfunding, by definition, entrepreneurs directly attract large numbers of non-professional investors to fund their project ideas (Bayus, 2013;Belleflamme et al., 2014). Among crowdfunding types, reward-based crowdfunding has another distinctive feature, namely pre-purchasing (Frydrych et al., 2014). ...
... Even if the idea is initially posted with sufficient description, it is not easy to fully convey it to consumers with a non-ready-made product (Mollick, 2014). In addition, the pre-purchase of new products that have not yet been implemented is accompanied by a sense of anxiety about project progress (Belleflamme et al., 2014). It appears that communication primarily contributed to disclosing information to the crowd and helping to address their doubts. ...
Article
Whether the novelty of an idea is a factor that directly influences crowdfunding success remains an area of ambiguity. We hypothesize that target funder diversification is effective with incremental ideas. However, focused business proposals are better suited to assert radical ideas. We also hypothesize the impact of two different strategic actions that founders can take during fundraising campaigns, agile information update and communication, on crowdfunding success. A deep-learning-based novelty detection model combined with statistical analysis is used to empirically test 7406 crowdfunding projects crawled from online platform. Our results support our hypotheses and reveal that information updates from startup founders show non-linear quadratic relationships with fundraising performance, whereas two-sided communication helps stimulate investors. We also revealed that novelty level can influence strategic choice, indicating that a project with a higher novelty should have a focused target. Our finding suggests a solution to the conflicting conclusions in previous studies on the direct impact of novelty level and target diversification, by explaining the process of novelty-dependent behavioral strategies based on signaling theory.
... Crowdfunding is another key area of digitalization research. Crowdfunding platforms allow entrepreneurial ventures to display early product ideas and acquire financial resources from a broad group of prospective users [19]. The increased interest in this area has also led to the development of new mechanisms such as equity-,reward-, or donation-based crowdfunding, among others, allowing entrepreneurial ventures to capitalize on different types of investor preferences and behaviors [20]. ...
... Zheng et al. (2016) have considered reward-based funding as an important and most popular form of crowdfunding where funders or investors have access to a wealth of knowledge about a project or product when making investment decisions (Bi et al. 2017). The final type of crowdfunding is reward-based, which gives back to donors in the form of a product or service, or a letter of appreciation from entrepreneurs (Belleflamme et al. 2014). Different parameters of reward-based crowdfunding have been studied the influence on the performance of investors (Roma et al. 2017); reward-based crowdfunding campaigns (Roma et al. 2018); motivations behind reward-based crowdfunding (Li and Wang 2019). ...
Article
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The current research aims to explore and prioritize the key benefits that influence the acceptance of crowdfunding as a fund-raising tool, either directly or indirectly. The study utilized a multidisciplinary approach to find out the varied benefits of crowdfunding. The study also prioritized the benefits by applying the buckley fuzzy-AHP technique. The results indicate the various benefits of crowdfunding. The study's results suggest fund-raising (FR), venture viability (VV), cost structure (CS), customer relationships (CR), demand building (DB), general strategy (GS), market intelligence (MI), personal sphere (PS), business ecosystem (BE), team development (TD) and product lifecycle (PL) are the benefits associated with the crowdfunding process. The findings also suggest that the topmost benefit of crowdfunding is FR. But our study has not categorized the benefits according to different types of crowdfunding, and the study's findings cannot be generalized as the study was conducted in India. The study highlighted the critical financial and non-financial benefits of crowdfunding which can help the entrepreneurs to have more insightful knowledge of the potential benefits of crowdfunding. Studying the financial and non-financial benefits of crowdfunding can further help the entrepreneurs utilize crowdfunding platforms, depending on the need, to provide the right solution to their requirements. This research is the first study to apply the buckley fuzzy-AHP technique to prioritize the multidisciplinary benefits of crowdfunding, thereby widening the knowledge base of academicians and entrepreneurs.
... In equity and lending-based crowdfunding, investors receive financial benefits (e.g., stocks and interest) in return for their investment. As for donation-based crowdfunding, investors donate money at will without expecting monetary return [1,9,57]. This study focuses on reward-based crowdfunding, which regards investors as early consumers and provides them access to the products generated by funded projects at an earlier date and better price, or some other special benefits [11,112]. ...
... Online communities enable the exchange of information and knowledge among members, thereby generating rich social value [31]. In the crowdfunding community, the relevant content of a crowdfunding project promotes members to communicate and discuss with each other about the specific project, which evokes their sense of social presence and thus increases their perceived social value [8,9]. Previous studies have also demonstrated that product-related content links community members together and is important for obtaining the relevant social benefits [65,66]. ...
Article
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Reward-based crowdfunding is an emerging business model whereby entrepreneurs raise money from several small investors. These investors, in turn, receive products/services as a reward. Investors’ participation is the key to success for this business model. We use the means-end theory to examine the success of the reward-based crowdfunding mechanism. We present an integrated model by considering two platform-based service attributes—platform characteristics (institutional mechanisms and information transparency) and entrepreneur efforts (content, embeddedness, and interaction)—and explore their influence on an investor’s perceived value (functional value, price value, emotional value, and social value), and participation intention. We test the model using survey data of 218 responses from 65 crowdfunding projects on a leading crowdfunding platform. The results show that all perceived values are positively associated with an investor’s future participation intention. An entrepreneur’s efforts to provide high-quality content and encourage interactions and the platform’s characteristics of institutional mechanisms improve an investor’s perceived functional, price, emotional, and social values. In addition, information transparency positively influences an investor’s perceived price, functional and emotional values. This study contributes to crowdfunding research by providing a comprehensive understanding of the success of a reward-based crowdfunding project. At the same time, the results of this study will be helpful for crowdfunding entrepreneurs and platforms.
... • crowdfunding is a special model of crowdsourcing that refers exclusively to financial contribution (Belleflamme et al., 2014). From the aspect of a smart city, crowdfunding is most often used to financially support projects that are important for a better life of citizens in the city. ...
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Pred Vama je četvrti broj naučnog časopisa “Acta Catallactics, časopis za ekonomska i opšta društvena pitanja” koji je osnovan 2019. godine i izlazi dva puta godišnje u izdanju udruženja “Multi” i Visoke škole “Internacionalna poslovno-informaciona akademija” Tuzla. Prvi i drugi brojevi časopisa su prigodni, na bazi knjige “Populizam, izabrane teme” i DIEC, treće međunarodne naučne konferencije o digitalnoj ekonomiji. Treći i četvrti broj časopisa je obuhvatio nove radove koji su recenzirani za potrebe objavljivanja.
... Startups or SMEs often face difficulties obtaining external funding in their early stages, such as insufficient new venture capital, lack of readiness for regular operational records, and limited commercial trust. Therefore, they have to seek funding from various sources, such as bank loans, angel investors, financial leasing companies, family, and friends (Belleflamme et al., 2014). Crowdfunding is the practice of project initiators proposing projects on online platforms to raise funds from many people; pledgers usually receive rewards or equity (Bradford, 2012;Gerber and Hui, 2013). ...
... Crowdfunding success is defined as a fundraising project that raises the required amount of money in a limited time (Beaulieu et al., 2015;Belleflamme et al., 2014). Some studies have explored the reasons why backers intend to pledge in reward-based crowdfunding. ...
This study explores the main and interaction effects of framing messages and cause-related marketing on backing intentions by manipulating frame types, frame valences, and cause-related marketing in the message narratives of crowdfunding projects. We conduct an online experiment for a crowdfunding campaign and analyze data using independent-samples t-test and ANOVA. This study's findings show that negative messages lead to higher backing intentions than positive ones regarding attribute and goal framing messages. Narratives with cause-related marketing in crowdfunding projects had a more significant effect on increasing backing intentions than those without cause-related marketing. Positive attribute framing messages combined with cause-related marketing had significantly higher backing intentions than messages without cause-related marketing; for negative attribute framing, there was no significant difference between with and without cause-related marketing. This study theoretically advances the literature on reward-based crowdfunding, which provides scholars with insight into the effects of the written narrative design of crowdfunding projects on backing intentions and extends to the applications of framing effect theory and cause-related marketing. Practically, this study provides project initiators and crowdfunding platform operators with new perspectives on proposal copywriting content design and project operation.
... Crowdfunding has become a global phenomenon, using the public to obtain financial support for projects or ventures [1]. Recently, it has increasingly drawn attention among companies and public organizations for its possible application to innovation management [2], [3]. ...
... Public crowdfunding-an alternative source of funding for entrepreneurs through an open call on the Internet [1]-has become a widely accepted phenomenon within the last years, with correspondingly enhanced activity in academic research [18]- [21]. In crowdfunding, a large audience of private backers-the crowd-is tapped for financial investments in return for potential rewards (e.g., equity shares, non-financial rewards such as goods or services, donations) [1]. Under the term enterprise crowdfunding or internal crowdfunding, the crowdfunding mechanism known from online implementations has started to spread as a tool inside established organizations [2]- [4], [9]. ...