Crowdfunding Platforms as a Bellwether for Product Market Success

Heeseung Lee; Likoebe Maruping

doi:10.5465/AMBPP.2022.13016abstract

Crowdfunding Platforms as a Bellwether for Product Market Success

Heeseung Lee, Likoebe Maruping

Department of Management, Marketing and Information Systems

Research output: Chapter in book/report/conference proceeding › Conference proceeding › peer-review

Abstract

The information systems (IS) literature has developed a cumulative literature on the factors underlying successful crowdfunding campaigns. Leading a successful crowdfunding campaign is not an end in itself, but a means to get a product to market. An emerging literature is beginning to explore a shift in the broader role of crowdfunding platforms from capital raising to aggregating market demand information for product innovations. However, our understanding of this role is incomplete in consequential ways. We leverage two views of crowdfunders as evaluators of new venture product innovations—one that views them as aggregators of demand information and another that views them as a novelty-seeking segment of the broader market. Based on evidence from Kickstarter and Amazon data we find a significant informational link between crowdfunding patterns and broader product market success. Product novelty is a boundary condition that can attenuate this link. The findings shed light on an emerging and broader role for crowdfunding platforms.

Original language	English
Title of host publication	Academy of Management Proceedings 2022
Editors	Sonia Taneja
Publisher	Academy of Management
DOIs	https://doi.org/10.5465/AMBPP.2022.13016abstract
Publication status	Published - 1 Aug 2022
Event	82nd Annual Meeting of the Academy of Management, AOM 2022: Creating a Better World Together - Hybrid, Seattle, Washington, United States Duration: 5 Aug 2022 → 9 Aug 2022 https://aom.org/events/annual-meeting/past-annual-meetings/2022-creating-a-better-world-together (Conference website) https://journals.aom.org/toc/amproc/2022/1 (Conference proceedings) https://journals.aom.org/loi/amproc/group/d2020.y2022 (Conference Proceedings)

Publication series

Name	Academy of Management Proceedings
Number	1
Volume	2022
ISSN (Print)	0065-0668
ISSN (Electronic)	2151-6561

Conference

Conference	82nd Annual Meeting of the Academy of Management, AOM 2022
Country/Territory	United States
City	Seattle, Washington
Period	5/08/22 → 9/08/22
Internet address	https://aom.org/events/annual-meeting/past-annual-meetings/2022-creating-a-better-world-together (Conference website) https://journals.aom.org/toc/amproc/2022/1 (Conference proceedings) https://journals.aom.org/loi/amproc/group/d2020.y2022 (Conference Proceedings)

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10.5465/AMBPP.2022.13016abstract

Cite this

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title = "Crowdfunding Platforms as a Bellwether for Product Market Success",

abstract = "The information systems (IS) literature has developed a cumulative literature on the factors underlying successful crowdfunding campaigns. Leading a successful crowdfunding campaign is not an end in itself, but a means to get a product to market. An emerging literature is beginning to explore a shift in the broader role of crowdfunding platforms from capital raising to aggregating market demand information for product innovations. However, our understanding of this role is incomplete in consequential ways. We leverage two views of crowdfunders as evaluators of new venture product innovations—one that views them as aggregators of demand information and another that views them as a novelty-seeking segment of the broader market. Based on evidence from Kickstarter and Amazon data we find a significant informational link between crowdfunding patterns and broader product market success. Product novelty is a boundary condition that can attenuate this link. The findings shed light on an emerging and broader role for crowdfunding platforms.",

author = "Heeseung Lee and Likoebe Maruping",

year = "2022",

month = aug,

day = "1",

doi = "10.5465/AMBPP.2022.13016abstract",

language = "English",

series = "Academy of Management Proceedings",

publisher = "Academy of Management",

number = "1",

editor = "Sonia Taneja",

booktitle = "Academy of Management Proceedings 2022",

address = "United States",

note = "82nd Annual Meeting of the Academy of Management, AOM 2022 : Creating a Better World Together ; Conference date: 05-08-2022 Through 09-08-2022",

url = "https://aom.org/events/annual-meeting/past-annual-meetings/2022-creating-a-better-world-together, https://journals.aom.org/toc/amproc/2022/1, https://journals.aom.org/loi/amproc/group/d2020.y2022",

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Lee, H & Maruping, L 2022, Crowdfunding Platforms as a Bellwether for Product Market Success. in S Taneja (ed.), Academy of Management Proceedings 2022. Academy of Management Proceedings, no. 1, vol. 2022, Academy of Management, 82nd Annual Meeting of the Academy of Management, AOM 2022, Seattle, Washington, United States, 5/08/22. https://doi.org/10.5465/AMBPP.2022.13016abstract

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AB - The information systems (IS) literature has developed a cumulative literature on the factors underlying successful crowdfunding campaigns. Leading a successful crowdfunding campaign is not an end in itself, but a means to get a product to market. An emerging literature is beginning to explore a shift in the broader role of crowdfunding platforms from capital raising to aggregating market demand information for product innovations. However, our understanding of this role is incomplete in consequential ways. We leverage two views of crowdfunders as evaluators of new venture product innovations—one that views them as aggregators of demand information and another that views them as a novelty-seeking segment of the broader market. Based on evidence from Kickstarter and Amazon data we find a significant informational link between crowdfunding patterns and broader product market success. Product novelty is a boundary condition that can attenuate this link. The findings shed light on an emerging and broader role for crowdfunding platforms.

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DO - 10.5465/AMBPP.2022.13016abstract

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Crowdfunding Platforms as a Bellwether for Product Market Success

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