The Role of Customer Investor Involvement in Crowdfunding Success

Published Online:https://doi.org/10.1287/mnsc.2018.3211

References

  • Afuah A, Tucci CL (2012) Crowdsourcing as a solution to distant search. Acad. Management Rev. 37(3):355–375.CrossrefGoogle Scholar
  • Agrawal A, Catalini C, Goldfarb A (2014) Some simple economics of crowdfunding. Innovation Policy Econom. 14(1):63–97.CrossrefGoogle Scholar
  • Agrawal A, Catalini C, Goldfarb A (2015) Crowdfunding: Geography, social networks, and the timing of investment decisions. J. Econom. Management Strategy 24(2):253–274.CrossrefGoogle Scholar
  • Altman M, Gill J, McDonald MP (2004) Numerical Issues in Statistical Computing for the Social Scientist (John Wiley & Sons, Hoboken, NJ).Google Scholar
  • Arellano M (2003) Panel Data Econometrics (Oxford University Press, Oxford, UK).CrossrefGoogle Scholar
  • Atanasov P, Rescober P, Stone E, Swift SA, Servan-Schreiber E, Tetlock P, Ungar L, Mellers B (2017) Distilling the wisdom of crowds: Prediction markets vs. prediction polls. Management Sci. 63(3):691–706.LinkGoogle Scholar
  • Bajaj A, Kekre S, Srinivasan K (2004) Managing NPD: Cost and schedule performance in design and manufacturing. Management Sci. 50(4):527–536.LinkGoogle Scholar
  • Banerjee AV (1992) A simple model of herd behavior. Quart. J. Econom. 107(3):797–817.CrossrefGoogle Scholar
  • Baron RM, Kenny DA (1986) The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. J. Personality Soc. Psych. 51(6):1173–1182.CrossrefGoogle Scholar
  • Bayus BL (2013) Crowdsourcing new product ideas over time: An analysis of the Dell IdeaStorm community. Management Sci. 59(1):226–244.LinkGoogle Scholar
  • Bikhchandani S, Hirshleifer D, Welch I (1992) A theory of fads, fashion, custom, and cultural change as informational cascades. J. Political Econom. 100(5):992–1026.CrossrefGoogle Scholar
  • Bikhchandani S, Hirshleifer D, Welch I (1998) Learning from the behavior of others: Conformity, fads, and informational cascades. J. Econom. Perspect. 12(3):151–170.CrossrefGoogle Scholar
  • Blackwell M, Iacus S, King G, Porro G (2009) CEM: Coarsened exact matching in Stata. Stata J. 9(4):524–546.CrossrefGoogle Scholar
  • Bosch-Rekveldt M, Jongkind Y, Mooi H, Bakker H, Verbraeck A (2011) Grasping project complexity in large engineering projects: The TOE (technical, organizational and environmental) framework. Internat. J. Project Management 29(6):728–739.CrossrefGoogle Scholar
  • Bottazzi L, Da Rin M, Hellmann T (2008) Who are the active investors? Evidence from venture capital. J. Financial Econom. 89(3):488–512.CrossrefGoogle Scholar
  • Boudreau KJ, Lacetera N, Lakhani KR (2011) Incentives and problem uncertainty in innovation contests: An empirical analysis. Management Sci. 57(5):843–863.LinkGoogle Scholar
  • Burtch G, Ghose A, Wattal S (2013) An empirical examination of the antecedents and consequences of contribution patterns in crowd-funded markets. Inform. Systems Res. 24(3):499–519.LinkGoogle Scholar
  • Burtch G, Ghose A, Wattal S (2015) The hidden cost of accommodating crowdfunder privacy preferences: A randomized field experiment. Management Sci. 61(5):949–962.LinkGoogle Scholar
  • Cai H, Chen Y, Fang H (2009) Observational learning: Evidence from a randomized natural field experiment. Amer. Econom. Rev. 99(3):864–882.CrossrefGoogle Scholar
  • Chatterji AK, Fabrizio K (2011) How do product users influence corporate invention? Organ. Sci. 23(4):971–987.LinkGoogle Scholar
  • Colombo MG, Franzoni C, Rossi-Lamastra C (2014) Internal social capital and the attraction of early contributions in crowdfunding. Entrepreneurship Theory Practice 39(1):75–100.CrossrefGoogle Scholar
  • Dahlander L, Piezunka H (2014) Open to suggestions: How organizations elicit suggestions through proactive and reactive attention. Res. Policy 43(5):812–827.CrossrefGoogle Scholar
  • Eisenhardt KM (1989) Agency theory: An assessment and review. Acad. Management Rev. 14(1):57–74.CrossrefGoogle Scholar
  • Fischer E, Reuber AR (2004) Contextual antecedents and consequences of relationships between young firms and distinct types of dominant exchange partners. J. Bus. Venturing 19(5):681–706.CrossrefGoogle Scholar
  • Fleming L, Sorenson O (2016) Financing by and for the masses: An introduction to the special issue on crowdfunding. California Management Rev. 58(2):5–19.CrossrefGoogle Scholar
  • Fontana R, Nuvolari A, Shimizu H, Vezzulli A (2013) Reassessing patent propensity: Evidence from a data set of R&D awards, 1977–2004. Res. Policy 42(10):1780–1792.CrossrefGoogle Scholar
  • Foss NJ, Laursen K, Pedersen T (2010) Linking customer interaction and innovation: The mediating role of new organizational practices. Organ. Sci. 22(4):980–999.LinkGoogle Scholar
  • Godinho de Matos M, Ferreira P, Smith MD (2017) The effect of subscription video-on-demand on piracy: Evidence from a household-level randomized experiment. Management Sci. 64(12):5610–5630.LinkGoogle Scholar
  • Gompers PA (1995) Optimal investment, monitoring, and the staging of venture capital. J. Finance 50(5):1461–1489.CrossrefGoogle Scholar
  • Griffin A, Hauser JR (1993) The voice of the customer. Marketing Sci. 12(1):1–27.LinkGoogle Scholar
  • Griffin A, Page AL (2003) PDMA success measurement project: recommended measures for product development success and failure. J. Product Innovation Management 13(6):478–496.CrossrefGoogle Scholar
  • Gruner KE, Homburg C (2000) Does customer interaction enhance new product success? J. Bus. Res. 49(1):1–14.CrossrefGoogle Scholar
  • Guevara CA, Ben-Akiva ME (2012) Change of scale and forecasting with the control-function method in logit models. Transportation Sci. 46(3):425–437.LinkGoogle Scholar
  • Hall BH, Helmers C, Rogers M, Sena V (2013) The importance (or not) of patents to UK firms. Oxford Econom. Papers 65(3):603–629.CrossrefGoogle Scholar
  • Hart O, Holmström B (1987) The theory of contracts. Bewley TF, ed. Advances in Economic Theory (Cambridge University Press, Cambridge, UK), 71–156.CrossrefGoogle Scholar
  • Hsu DH (2004) What do entrepreneurs pay for venture capital affiliation? J. Finance 59(4):1805–1844.CrossrefGoogle Scholar
  • Iacus SM, King G, Porro G (2019) A theory of statistical inference for matching methods in causal research. Political Anal. Forthcoming.CrossrefGoogle Scholar
  • Iacus SM, King G, Porro G (2012) Causal inference without balance checking: Coarsened exact matching. Political Anal. 20(1):1–24.CrossrefGoogle Scholar
  • Isenberg D (2012) The road to crowdfunding hell. Harvard Bus. Rev. Accessed April 23, 2012, https://hbr.org/2012/04/the-road-to-crowdfunding-hell.Google Scholar
  • Jensen MC, Meckling WH (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. J. Financial Econom. 3(4):305–360.CrossrefGoogle Scholar
  • Jeppesen LB, Lakhani KR (2010) Marginality and problem-solving effectiveness in broadcast search. Organ. Sci. 21(5):1016–1033.LinkGoogle Scholar
  • Kickstarter (2014a) One question, six creators: What makes a good project page? Kickstarter Blog. Accessed January 28, 2015, https://www.kickstarter.com/blog/one-question-six-creators-what-makes-a-good-project-page.Google Scholar
  • Kickstarter (2014b) Terms of use. Accessed January 26, 2015, https://www.kickstarter.com/terms-of-use.Google Scholar
  • Kickstarter (2015) Our rules. Accessed February 4, 2015, https://www.kickstarter.com/rules.Google Scholar
  • Kickstarter Executive (2014) Personal conversation with Philipp Cornelius, London, October 13.Google Scholar
  • Kuppuswamy V, Bayus BL (2017) Does my contribution to your crowdfunding project matter? J. Bus. Venturing 32(1):72–89.CrossrefGoogle Scholar
  • Kuppuswamy V, Bayus BL (2018) A review of crowdfunding research and findings. Golder PN, Mitra D, eds. Handbook of New Product Development Research (Edward Elgar Publishing Ltd., Cheltenham Glos, UK), 361–373.CrossrefGoogle Scholar
  • Larsson R, Bowen DE (1989) Organization and customer: Managing design and coordination of services. Acad. Management Rev. 14(2):213–233.CrossrefGoogle Scholar
  • Levinthal DA (1998) The slow pace of rapid technological change: Gradualism and punctuation in technological change. Indust. Corporate Change 7(2):217–247.CrossrefGoogle Scholar
  • Ley A, Weaven S (2011) Exploring agency dynamics of crowdfunding in start-up capital financing. Acad. Entrepreneurship J. 17(1):85–111.Google Scholar
  • Lilien GL, Morrison PD, Searls K, Sonnack M, von Hippel E (2002) Performance assessment of the lead user idea-generation process for new product development. Management Sci. 48(8):1042–1059.LinkGoogle Scholar
  • Lin M, Viswanathan S (2016) Home bias in online investments: An empirical study of an online crowdfunding market. Management Sci. 62(5):1393–1414.LinkGoogle Scholar
  • Liu TX, Yang J, Adamic LA, Chen Y (2014) Crowdsourcing with all-pay auctions: A field experiment on Taskcn. Management Sci. 60(8):2020–2037.LinkGoogle Scholar
  • Liu X, Lovely ME, Ondrich J (2010) The location decisions of foreign investors in China: Untangling the effect of wages using a control function approach. Rev. Econom. Statist. 92(1):160–166.CrossrefGoogle Scholar
  • Magnusson PR (2009) Exploring the contributions of involving ordinary users in ideation of technology-based services. J. Product Innovation Management 26(5):578–593.CrossrefGoogle Scholar
  • McFadden D (1974) Conditional logit analysis of qualitative choice behavior. Zarembka P, ed. Frontiers in Econometrics (Academic Press, New York), 105–142.Google Scholar
  • Moe WW, Fader PS (2002) Using advance purchase orders to forecast new product sales. Marketing Sci. 21(3):347–364.LinkGoogle Scholar
  • Mollick E (2014) The dynamics of crowdfunding: An exploratory study. J. Bus. Venturing 29(1):1–16.CrossrefGoogle Scholar
  • Mollick E, Nanda R (2016) Wisdom or madness? Comparing crowds with expert evaluation in funding the arts. Management Sci. 62(2):1533–1553.LinkGoogle Scholar
  • Müller R, Turner JR (2007) Matching the project manager’s leadership style to project type. Internat. J. Project Management 25(1):21–32.CrossrefGoogle Scholar
  • Nambisan S (2002) Designing virtual customer environments for new product development: Toward a theory. Acad. Management Rev. 27(3):392–413.CrossrefGoogle Scholar
  • Nickell S (1981) Biases in dynamic models with fixed effects. Econometrica 49(6):1417–1426.CrossrefGoogle Scholar
  • Nijssen EJ, Hillebrand B, de Jong JPG, Kemp RGM (2012) Strategic value assessment and explorative learning opportunities with customers. J. Product Innovation Management 29(S1):91–102.CrossrefGoogle Scholar
  • Osadchiy N, Gaur V, Seshadri S (2016) Systematic risk in supply chain networks. Management Sci. 62(6):1755–1777.LinkGoogle Scholar
  • Pierce L, Snow DC, McAfee A (2015) Cleaning house: The impact of information technology monitoring on employee theft and productivity. Management Sci. 61(10):2299–2319.LinkGoogle Scholar
  • Piezunka H, Dahlander L (2015) Distant search, narrow attention: How crowding alters organizations’ filtering of suggestions in crowdsourcing. Acad. Management J. 58(3):856–880.CrossrefGoogle Scholar
  • Pindyck RS, Rubinfeld DL (1991) Econometric Models and Economic Forecasts, 3rd ed. (McGraw-Hill, Singapore).Google Scholar
  • Priem RL (2007) A consumer perspective on value creation. Acad. Management Rev. 32(1):219–235.CrossrefGoogle Scholar
  • Priem RL, Li S, Carr JC (2012) Insights and new directions from demand-side approaches to technology innovation, Entrepreneurship, and strategic management research. J. Management 38(1):346–374.CrossrefGoogle Scholar
  • Ramdas K, Meyer M, Randall T (2007) Who do I listen to? The role of the customer in product evolution. Loch CH, Kavadias S, eds. Handbook of New Product Development Management (Butterworth-Heinemann, Oxford, UK), 345–375.Google Scholar
  • Singh J, Fleming L (2010) Lone inventors as sources of breakthroughs: Myth or reality? Management Sci. 56(1):41–56.LinkGoogle Scholar
  • Smith S, Windmeijer F, Wright E (2015) Peer effects in charitable giving: Evidence from the (running) field. Econom. J. 125(585):1053–1071.Google Scholar
  • Strickler Y, Chen P, Adler C (2012) Kickstarter is not a store. Kickstarter Blog. Accessed January 26, 2015, https://www.kickstarter.com/blog/kickstarter-is-not-a-store.Google Scholar
  • Sullivan EA (2010) A group effort: More companies are turning to the wisdom of the crowd to find ways to innovate. Marketing News 44(2):22–29.Google Scholar
  • von Hippel E (1994) “Sticky information” and the locus of problem solving: Implications for innovation. Management Sci. 40(4):429–439.LinkGoogle Scholar
  • von Hippel E (1998) Economics of product development by users: The impact of “sticky” local information. Management Sci. 44(5):629–644.LinkGoogle Scholar
  • West MA, Anderson NR (1996) Innovation in top management teams. J. Appl. Psych. 81(6):680–693.CrossrefGoogle Scholar
  • Wind J, Mahajan V (1997) Issues and opportunities in new product development: An introduction to the special issue. J. Marketing Res. 34(1):1–12.CrossrefGoogle Scholar
  • Wooldridge JM (2010) Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).Google Scholar
  • Yli-Renko H, Autio E, Sapienza HJ (2001) Social capital, knowledge acquisition, and knowledge exploitation in young technology-based firms. Strategic Management J. 22(6–7):587–613.CrossrefGoogle Scholar
  • Younkin P, Kashkooli K (2016) What problems does crowdfunding solve? California Management Rev. 58(2):20–43.CrossrefGoogle Scholar
  • Zhang J, Liu P (2012) Rational herding in microloan markets. Management Sci. 58(5):892–912.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.