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Corrigendum to "Crowdfunding: Tapping the Right Crowd"

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... 8.5 trillion and Indonesian livestock products have been able to penetrate more than 110 countries. Although livestock is a traditional sector of the community in various regions [6], the contribution of the livestock sector is able to compete on the national to international level [7]. One of the productive areas in optimizing the livestock sub-sector is East Java Province [8]. ...
... Departing from these problems, the innovations we offer provide a bridge between farmers and investors to provide access to capital and the sale and purchase of livestock products as a production activity [12]. Secondly, this innovation promotes progress in the field of finance on a crowdfunding basis based on shared interests and ideologies [7,13,14]. The choice of crowdfunding method is also supported by the number of internet users who have reached 171 million people [15]. ...
Article
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Gross Domestic Products in a country becomes an important focus in measuring the level of welfare of the people. One of the sectors contributing to Indonesia’s high GDP is the agriculture sector in the livestock sub-sector. Indonesia is able to contribute from the livestock sub-sector to meet the food needs of the community at large. However, problems arise in accessing capital and sales of livestock products that make the livestock sub-sector’s contribution fluctuate each year, so that Indonesia must import livestock products to meet public demand. The development of crowdfunding-based financial technology as a breeder capital strategy through capital contributions supported by the integration of livestock partners and millennial farms planning. Through innovations based on the digitalization of financing and marketing of livestock products and supported by a positive trend of internet growth. TernAkses is an investment service innovation and sale and purchase of livestock products based marketing. Access can solve existing problems through funding programs, partnerships, training, assistance, marketing and livestock sharing. TernAkses uses websites and applications that can be accessed through a broad range of community smartphones. In its application, the synergy of related stakeholders is needed to be able to implement the concept.
... The joint addressing of the financing and pricing decision is a feature that relates my model also to the recent literature on crowdfunding. However, in the model of Belleflamme et al. (2014) and Sahm et al. (2014), who consider a continuum of potential consumers, the optimality of an advance-purchase surcharge originates from the behavioral assumption that pre-orderers experience community benefits, i.e., additional utility from belonging to the funding crowd. ...
... A monopolistic entrepreneur seeks to finance a project with a commonly known capital requirement, which is also referred to as fixed costs: K. If the capital requirement 6 Thus their findings conflict with the result that, in a continuum economy, the behavioral assumption of community benefits is critical for crowdfunding to be more profitable than TF Sahm et al. 2014). 7 Schmitz (1997) and Norman (2004) show that the monopolist will indeed find it optimal to rely on simple contracts (such as average cost pricing) if the number of potential buyers becomes very large. ...
Article
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I investigate a simple model of advance-purchase contracts as a mode of financing costly projects. An entrepreneur has to meet a capital requirement in order to start production and sell the related good to a limited number of potential buyers who are privately informed about their willingness to pay. I find that advance-purchase arrangements enable more costly projects to be financed than is true for traditional funding sources. The entrepreneur uses advance-purchase surcharges as a price discrimination device. However, the discriminatory power is limited by the problem of free-riding.
... This tendency is well documented in psychology. Indeed, most people display systematic planning fallacy(Buehler, Griffin, and Ross, 1994) and unrealistically rosy views of their abilities and prospects(Weinstein, 1980).5 See alsoSahm et al. (2014), which slightly corrects (and, thereby, simplifies) the analysis. ...
Article
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This article reviews some recent developments in the study of crowdfunding – i.e., the practice of raising funds through an open call on the Internet. It also shows how microeconomic theory can help us understand some important aspects of crowdfunding that go beyond the finance sphere of the firm. A special attention is devoted to the role and behavior of crowdfunding platforms, which intermediate between entrepreneurs and funders. Throughout the paper, the Belgian market for crowdfunding serves as the main source of illustrations.
... Enterprises have to target at the customers with different expectations. Belleflamme et al. [11] isolated some important features of crowdfunding on the basis of a unique, hand-collected dataset and proposed a model of crowdfunding that encompasses several of these key features. By constructing the profit function, they obtained the pricing expression of the product and the ownership of the product. ...
Conference Paper
The pricing strategy of crowdfunding has always been its highlights and difficulties. A pricing strategy formula concerning with the price discrimination is obtained through the in-depth studies of the price discrimination theory and the mechanism of crowdfunding pricing, considering the crowdfunding financial limits which constitute constraint conditions. This article carries out a study on the effect of advertising profit of crowdfunding and founds the profit function. Furthermore, it studies the model of crowdfunding based on the 1P theory to solve this issue. Finally, the article provides a corresponding pricing strategy on product crowdfunding based on the above studies. It is expected to contribute to the field of theoretical research on crowdfunding and the pricing strategy through this article, and provide inspiration and reference for enterprises and entrepreneurs when they make the pricing strategy decisions.
... Most of the academic research since 2010 has focused on perspectives of the general business model, including the underlying logic of various categories of crowdfunding (Schwienbacher and Larralde 2010;Hart et al. 2013), investment decision theories (Belleflamme and Lambert 2014; Agrawal et al. 2015), and computational models (Sahm et al. 2014;Agrawal et al. 2015;Xie et al. 2016). Recent research focuses on crowdfunding as a marketing tool (Beier et al. 2019;Konhäusner 2020). ...
Article
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As a dynamic way to raise funds for professional and private projects in recent years, crowdfunding has made tremendous progress, especially through online platforms. However, research on this subject is still young, leaving room for different perspectives. We therefore approach the marketing mix adaptability of online crowdfunding platforms and its impact on campaign efficiency and company strategy in two major economies: Germany and China. With the help of case examples based on secondary data, we performed an in-depth analysis of the 4E marketing mix benefits on crowdfunding, highlighting best practice approaches. We critically discuss the 4Es marketing mix approach, focusing on experience, value exchange, and marketing scales, and clarify the compatibility between crowdfunding and 4Es to better understand how these theories are applied to crowdfunding activities. As a result, the suitability of the 4E marketing mix adapted to crowdfunding needs is shown. From a market-oriented perspective, managers of crowdfunding platforms, as well as project owners from Germany and China, will be better able to attract their target audience by applying the 4E adaptation provided.
... In addition, there are too many entrepreneurs competing for funding from fewer venture capitalists thereby creating funding gaps (Sigar, 2012). These funding gaps have been filled by crowdfunding, which presents varied funding opportunities for entrepreneurs and small businesses who cannot access funding from the banks (Dorfleitner et al., 2018;Vismara, 2016;Agrawal et al., 2014;Mollick, 2014;Sahm et al., 2014). ...
Article
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The study explores the relevance of theoretical aspect of crowd financing by reviewing the defining literature on Pecking Order and Agency theories in details and evaluates applications of these theories based on crowdfunding. In particular, the study critically considers the key concepts of these theories and how they could be applied in practical terms. The study decides to adopt Pecking Order and the Agency theories because they provide valuable insights into the trend of crowdfunding streams available to firms. The paper primarily adds to existing literature on the broader definition of crowdfunding as a concept and then examine the relationship between this concept and its practical applications to the chosen theories. The study combines these theoretical perspectives with the practical aspects of startup companies raising finance using the crowd because a broad reading of the literature tends to point to in this direction. The key concepts of these theories are critically considered and the study is conducted in the form of review of literature and expression of opinion. Citation: author1, author2, author3. The dynamics of Pecking Order and Agency theories on crowdfunding concept as alternate finance for start-up businesses. 2020; 4(1): 1-13.Received: (February 2, 2020) Accepted: (March 31, 2020)
... 9 However, the optimal price discrimination scheme may not be feasible if the initial capital requirement is too high. The obligation to finance the capital through pre-sales puts indeed a constraint on the price that can 8 See also Sahm, Belleflamme, Lambert, and Schwienbacher (2014), which slightly corrects (and, thereby, simplifies) the analysis. Although entrepreneurs are the unit of decision in this analysis, one can easily repeat it with platforms choosing between crowdfunding forms. ...
Chapter
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This chapter shows how the theory of industrial organization can help us understand some important aspects of crowdfunding that go beyond the finance sphere of the firm. A special attention is devoted to the role and behavior of crowdfunding platforms, which intermediate between entrepreneurs and contributors.
... • Los promotores publican los proyectos en la red y buscan uno o varios de los siguientes resultados: reacción previa del público, testeo de ideas, financiación, visibilidad pública y/u obtención de feedback (Willems, 2013;Sahm et al., 2014). ...
Article
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El desarrollo de Internet ha permitido que muchos emprendedores acudan a nuevas fuentes de financiación como el crowdfunding . El objetivo de este artículo es analizar el papel de la comunicación en la captación de fondos. Para ello se comparan dos campañas desarrolladas para un mismo proyecto: una primera, ‘ The Coolest’ , que no consiguió financiación y otra posterior, ‘ The Coolest Cooler’ , que recaudó 13.285.226 dólares batiendo un récord de captación de fondos. Los resultados muestran importantes diferencias en la utilización de las siguientes herramientas de persuasión: egocentrismo, tangibilidad, estímulos visuales, emoción, principio, estructura y final del mensaje. Todos los elementos del mensaje deben generar confianza y promover a la acción: participar y financiar el proyecto propuesto. Este trabajo tiene implicaciones prácticas y teóricas al demostrar que la comunicación se convierte en una pieza clave en el éxito de las campañas de crowdfunding .
... 9 However, the optimal price discrimination scheme may not be feasible if the initial capital requirement is too high. The obligation to finance the capital through pre-sales puts indeed a constraint on the price that can 8 See also Sahm, Belleflamme, Lambert, and Schwienbacher (2014), which slightly corrects (and, thereby, simplifies) the analysis. Although entrepreneurs are the unit of decision in this analysis, one can easily repeat it with platforms choosing between crowdfunding forms. ...
Chapter
Full-text available
This chapter shows how the theory of industrial organization can help us understand some important aspects of crowdfunding that go beyond the finance sphere of the firm. A special attention is devoted to the role and behavior of crowdfunding platforms, which intermediate between entrepreneurs and contributors.
... This form of crowdfunding has a certain time limit. If the specified amount of money is not raised within the time limit, the project fails and the money raised will also be refunded to donors (Belleflamme et al., 2014;Gerber et al., 2012;Shneor & Munim, 2019). The online platform has greatly simplified the process and makes it easy and convenient to use to both patients and donors. ...
Article
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Medical crowdfunding in social media is growing to be a convenient, accessible, and secure manner to cover medical expenses. It differs from traditional donation initiatives and medical crowdfunding on non-social media platforms in that projects are disseminated via social media network and among acquaintances. Through semi-structured in-depth interviews on donation behaviors of 52 respondents, this study uses grounded theory to extract seven main categories that affect medical crowdfunding donation behavior in social media, namely interpersonal relationship, reciprocity of helping, attitude toward donation, perceived behavior control, perceived trust, project information, and characteristics of patients. In the spirit of Elaboration Likelihood Model, we develop a theoretical framework that the seven factors influence donation behavior in medical crowdfunding in social media via a central and a peripheral route.
... According to Kempf (2013), digital entrepreneurs can opt to engage in three different dimensions of the sharing economy: (1) the sharing of digital content (e.g., Belk, 2014); (2) the sharing of physical goods (e.g., Möhlmann, 2015); and, (3) crowdfunding (e.g., Sahm, Belleflamme, Lambert, & Schwienbacher, 2014). The setup of this article follows the framework given by Kempf, using several aspects of the sharing economy in one single work. ...
Article
What's mine is yours. An increasing number of people are participating in sharing and exchanging information, knowledge, data and goods. As research addressing the so-called ‘sharing economy’ is still in its infancy, this article aims to shed light on it. To do this, a qualitative research approach comprising guided interviews with 14 companies from Germany, Austria and Switzerland provides detailed insights into different aspects of the sharing economy phenomenon. Our results make a direct contribution to sharing economy research, especially regarding the new business models of start-ups. Here, we find a clear difference between the relevance of economic and social orientation. The latter appears to be in higher demand among customers than entrepreneurs. The increasingly digitalized environment has led to a changed living situation characterized by urbanity, openness to new solutions, changed working situations and new mindsets. All of these aspects drive the sharing economy. The results of this paper are summarized in a framework highlighting the requirements, drivers and goals of the sharing economy. Considering the limited research in this field, the developed framework is a strong basis for discussion, critique and/or support of future research.
Article
Crowdsourcing has seen a substantial increase in interest from researchers and practitioners in recent years. Being a new form of work facilitated by information technology, the rise of crowdsourcing calls for the development of new theoretical insights. Our focus in this article is on extra-role behavior—employees' voluntary activities, which are not part of their prescribed duties. Specifically, we explored how user interface design can help increase extra-role behavior among crowdsourcing workers. In a randomized experiment, we examined the joint effects of the presentation of a performance display to crowdsourcing workers and the personal attributes of these workers on the workers' likelihood to engage in extra-role behavior. The experimental setting included an image analysis task performed on an environmental monitoring website. We compared workers' behavior across the different experimental conditions and found that the interaction between the presence of a performance display and the workers' personality trait of curiosity has a significant impact on the likelihood of engaging in extra-role behavior. In particular, the presence of a performance display was associated with increased likelihood of extra-role behavior among low-curiosity workers, and no change in extra-role behavior was observed among high-curiosity users. Implications for design are discussed.
Article
Reward‐based crowdfunding with the all‐or‐nothing mechanism helps cash‐strapped creators raise funds from potential consumers to develop new products. However, this mechanism may hurt the creator in the long run because possible buying frenzies of strategic consumers will cannibalize the demand for spot sales if the project succeeds with overfunding. Through a two‐period model incorporating a crowdfunding period and a spot sales period, we find that strategic consumers' purchasing decisions depend on the probability that they will like the product in spot sales. Moreover, we show that crowdfunding cannot be used to finance when the setup cost that a creator needs to pay for the production is sufficiently high. In addition, for creators who can use crowdfunding to finance, contrary to the intuition that they should not take risks when the market uncertainty is high, we find the opposite results when we take the joint effect of the setup cost and market uncertainty into consideration. To be specific, when the market uncertainty is high and the setup cost is higher than a threshold, the creator can optimally choose the risky strategy. Furthermore, the creator may benefit from market uncertainty when a high setup cost is required to launch the product.
Conference Paper
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Esta comunicación pretende determinar el aprovechamiento que el sector audiovisual latinoamericano está haciendo de los beneficios del crowdfunding como nueva estrategia de financiación. Para ello se seleccionan, por un lado, la plataforma de referencia a nivel mundial, Kickstarter y, por otro, con el fin de posibilitar la transferencia de particularidades del fenómeno al contexto espacial analizado, la plataforma latinoamericana de crowdfunding más importante, Idea.me. Para conocer la viabilidad y el comportamiento de esta fórmula como método para la financiación total o parcial de los proyectos audiovisuales latinoamericanos se analizan las campañas de crowdfunding de Brasil, Argentina, Chile y Ecuador, que albergan las dos plataformas seleccionadas. Basándonos en los resultados obtenidos, se evidencia que, variables relacionadas con la calidad del producto, su presentación gráfica, la elección de una plataforma adecuada o realizar una cuidada estrategia de comunicación a través de las redes sociales, eleva las posibilidades de éxito de las campañas de crowdfunding en el sector audiovisual de América Latina.
Article
More and more consumers base their buying decision process on online reviews. Not surprisingly, researches show that online reviews have an actual impact on revenues. As a result, a new product can disappear even before it makes it to the market. How to make sure that the new product will get positive online reviews before it goes to market? By evaluating the market value of a new product before and after Crowdsourcing, we offer the proof-of-concept that crowd-wisdom pertaining to new-product idea generation improves its market value significantly, both in term of ratings and comments after just one integration of the crowd into the new product development process. The improvement took place before a large investment was done. More surprisingly, this market value after Crowdsourcing is the same for the Crowd involved in the Crowdsourcing process than for the potential customers of the new product created by using this process.
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With the development of financial market and various demands of customers, the traditional financial industry begins to change the business process, risk controlling and business models. FinTech appears and develops rapidly in various business models to solve problems in the financial markets. This paper analyzes 629 FinTech business model papers in the Web of Science database. First, we analyze the overall growth trend, research area, research institutions and core authors in the Fintech business model based on the statistical analysis. Second, this paper builds the citation network of Fintech business model and analyzes citation clusters, the key nodes and pivot nodes and the dynamic evolution of co-cited keywords. Finally, we summarize the latest hot topics in the FinTech, which are mobile payment, microfinance, peer-to-peer lending platform and crowdfunding. In the future, the trend of the research is Blockchain and crowdfunding and they will have a subversive influence on the Fintech business model. The research ideas and conclusions in this paper are enlightening to the academic research the commercial practical application of Fintech.
Article
Background Crowdfunding has become a unique response to the challenge of health care expenses, yet it has been rarely studied by the medical community. We looked to describe the scope of crowdfunding in thyroid surgery and analyze the factors that contribute toward a successful campaign. Methods In November 2018, active campaigns were retrieved from a popular crowdfunding Web site using search terms thyroidectomy and thyroid surgery and filtered to include only campaigns that originated in the United States. Results About 1052 thyroid surgery–related campaigns were analyzed. About 836 (79.5%) involved female patients and 43 (4.1%) pediatric patients. About 792 campaigns (75.3%) referred to thyroid cancer as a primary condition, 163 (15.5%) benign thyroid disease, and 97 (9.2%) other conditions. The average amount raised per campaign was $2514.54 (range, $0-$53,160). About 338 (32.1%) campaigns were self-posted, 317 (30.1%) posted by family, and 397 (37.7%) posted by friends. Median campaign duration was 20 mo, with a median number of 16 donors, 17 hearts, and 136 social media shares. Campaigns related to thyroid cancer raised more funds ($2729.97) than benign ($1669.84) or other ($2175.03) conditions (P < 0.001). Campaigns submitted by friends ($3524.78) received more funding than those by self ($1672.48) or family ($2147.19) (P < 0.001). Campaign duration, donor number, share number, and hearts were also significant predictors of amount raised. Conclusions For thyroid surgery–related crowdfunding, campaigns referring to thyroid cancer had the highest amount of funds raised. Campaigns created by friends and other factors related to increased community engagement such as social media shares were also related to increased funds.
Article
An entrepreneur finances her project via crowdfunding. She chooses a funding mechanism ( fixed or flexible), a price, and a funding goal. Under fixed funding, money is refunded if the goal is not met; under flexible funding, there is no refund. Backers observe signals about project value and decide whether to contribute or postpone purchase to the retail stage. Using the linkage principle, we show that the optimal campaign uses fixed funding. Furthermore, we show that an entrepreneur who is not financially constrained can approximately extract full surplus using fixed funding. Therefore, crowdfunding is attractive to both small and large entrepreneurs. (JEL D26, D82, G32, L26)
Article
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Purpose of the study: The primary purpose of this study is to examine the antecedents of the intention to donate on the crowdfunding. Methodology: The research design of this study is a quantitative technique. The data is primary data based on the survey to active university students in the City of Yogyakarta. The study examines 185 completed questionnaires and analyzes the relationship among variables by employing structural equation model. Main Findings: Overall, the results support the Theory of Planned Behaviour (TPB). When other variables are is integrated into the TPB, the variables of past behavior and religiosity, but not moral norm, improve the prediction on the intention to donate significantly. Applications of this study: In addition to the extension of the TPB, this study suggests that individuals, owner projects or charitable organizations should include past behavior and religiosity components in understanding donor behaviors. Novelty/Originality of this study: This study expands the Theory of Planned Behaviour by integrating additional factors that are considered to improve the explanatory power of the model.
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