How does social media affect contribution to public versus private goods in crowdfunding campaigns?

Yili Hong, Yuheng Hu, Gordon Burtch

Research output: Chapter in Book/Report/Conference proceedingConference contribution

13 Scopus citations

Abstract

This paper examines the interplay among crowdfunding campaigns, social media activity and accumulated capital. We construct a panel dataset that incorporates information about crowdfunding campaigns hosted at one of the worlds largest rewardbased crowdfunding platforms, IndieGoGo, as well as social media activities relating to the campaign, collected from Twitter and Facebook APIs. We demonstrate that, while social media activities matter in general, buzz on Twitter is more influential for campaigns that intend to produce private goods, because Twitter is more likely to be used for objective information gathering and is therefore a better source for information about product or service quality. In contrast, sharing activities on Facebook are more influential for campaigns that aim to supply a public good, because Facebook primarily supports connections, and thus provides the conditions necessary for the manifestation of social norms. We discuss the theoretical implications for the literatures on social media and crowdfunding.

Original languageEnglish (US)
Title of host publication2015 International Conference on Information Systems: Exploring the Information Frontier, ICIS 2015
PublisherAssociation for Information Systems
StatePublished - 2015
Event2015 International Conference on Information Systems: Exploring the Information Frontier, ICIS 2015 - Fort Worth, United States
Duration: Dec 13 2015Dec 16 2015

Other

Other2015 International Conference on Information Systems: Exploring the Information Frontier, ICIS 2015
CountryUnited States
CityFort Worth
Period12/13/1512/16/15

Keywords

  • Crowdfunding
  • Private good
  • Public good
  • Social media
  • Social sharing

ASJC Scopus subject areas

  • Computer Science Applications
  • Statistics, Probability and Uncertainty
  • Library and Information Sciences
  • Applied Mathematics

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