Crowdfunding from the perspective of young people

Ignatius Novianto Hariwibowo

Abstract


Research aims: This study aims to identify the dominant factors that make young people interested in joining or using crowdfunding platforms.
Design/Methodology/Approach: This research was conducted using the topic method or text analysis with the Social Network Analysis (SNA) approach. Data in the study were obtained by distributing questionnaires to 201 respondents who were young people aged 19 to 22 years.
Research findings: The results of this study revealed that the dominant factors attracting young people to use crowdfunding include web technology, ease of use, high rate of return, transparency, and legality. The results of this study indicate that convenience is the primary attraction for young people in transactions.
Theoretical contribution/Originality: The results of this study offer indicators that can be used to measure, in particular, the usability variables of web-based crowdfunding platforms in TAM (Technology Acceptance Model). These indicators encompass the amount of return, clarity of business fields and objectives, and transaction security. As for the variables of ease of use, among others, clarity of navigation and information on the web makes users comfortable.
Practitioner/Policy implication: The findings of this study imply that Web 2.0 has become a suitable way of interacting with young people. Hence, crowdfunding platform websites need to be designed to support ease of transactions. However, accountability, transparency, clarity of effort, reciprocity, and legality can be effective campaign methods to attract young people to contribute to crowdfunding.
Research limitation/Implication: This study used researchers' judgment to interpret the meaning and the relationship between keywords in sentences submitted by respondents in questionnaires.


Keywords


Accountability; Crowdfunding; Technology; Young People

Full Text:

PDF

References


Alegre, I., & Moleskis, M. (2021). Beyond Financial Motivations in Crowdfunding: A Systematic Literature Review of Donations and Rewards. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 32(2), 276–287. https://doi.org/10.1007/s11266-019-00173-w

Annur, C. M. (2023, August 1). Ada 366 Anggota Asosiasi Fintech di Indonesia hingga 2022, Begini Trennya. Https://Databoks.Katadata.Co.Id/Datapublish/2023/08/01/Ada-366-Anggota-Asosiasi-Fintech-Di-Indonesia-Hingga-2022-Begini-Trennya.

Arifah, J. N., & Dalimunthe, Z. (2021). The Impact of Financial Literacy on the Investment Decision of Non-Donation-Based Crowdfunding in Indonesia. International Journal of Business and Society, 21(3), 1045–1057. https://doi.org/10.33736/ijbs.3310.2020

Battisti, E., Graziano, E. A., & Christofi, M. (2022). Equity crowdfunding platforms and social media: a Twitter analysis. International Journal of Entrepreneurial Behavior & Research, 28(5), 1206–1221. https://doi.org/10.1108/IJEBR-01-2021-0081

Battisti, E., Graziano, E. A., Limbu, Y. B., & Stella, G. P. (2021). Web 2.0 and Equity Crowdfunding: a Social Network Analysis. PuntOorg International Journal, 6(1), 37–48. https://doi.org/10.19245/25.05.pij.6.1.4

Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: tapping the right crowd. Journal of Business Venturing, 29(5), 585–609.

Bernardino, S., & Santos, J. F. (2020). Crowdfunding: An Exploratory Study on Knowledge, Benefits and Barriers Perceived by Young Potential Entrepreneurs. Journal of Risk and Financial Management, 13(4), 81. https://doi.org/10.3390/jrfm13040081

Bhardwaj, G. N., Sinha, G., & Pal, S. (2019). FinTech and the Younger Generation. The IUP Journal of Information Technology, 15(1), 16–33.

Borst, I., Moser, C., & Ferguson, J. (2018). From friendfunding to crowdfunding: Relevance of relationships, social media, and platform activities to crowdfunding performance. New Media & Society, 20(4), 1396–1414. https://doi.org/10.1177/1461444817694599

Bukhari, F. A. S., Usman, S. M., Usman, M., & Hussain, K. (2020). The effects of creator credibility and backer endorsement in donation crowdfunding campaigns success. Baltic Journal of Management, 15(2), 215–235. https://doi.org/10.1108/BJM-02-2019-0077

Cheng, F. F., Huang, Y. W., Yu, H. C., & Wu, C. S. (2018). Mapping knowledge structure by keyword co-occurrence and social network analysis: Evidence from Library Hi Tech between 2006 and 2017. Library Hi Tech, 36(4), 636–650. https://doi.org/10.1108/LHT-01-2018-0004

Cho, M., & Kim, G. (2017). A cross-cultural comparative analysis of crowdfunding projects in the United States and South Korea. Computers in Human Behavior, 72, 312–320. https://doi.org/10.1016/j.chb.2017.03.013

Colombo, M. G., Franzoni, C., & Rossi–Lamastra, C. (2015). Internal Social Capital and the Attraction of Early Contributions in Crowdfunding. Entrepreneurship Theory and Practice, 39(1), 75–100. https://doi.org/10.1111/etap.12118

Cornelius, P. B., & Gokpinar, B. (2020). The Role of Customer Investor Involvement in Crowdfunding Success. Management Science, 66(1), 452–472. https://doi.org/10.1287/mnsc.2018.3211

Cumming, D. J., & Vismara, S. (2017). De-segmenting research in entrepreneurial finance. Venture Capital, 19(1–2), 17–27. https://doi.org/10.1080/13691066.2016.1225910

Datta, A. (avi), Sahaym, A., & Brooks, S. (2019). Unpacking the Antecedents of Crowdfunding Campaign’s Success: The Effects of Social Media and Innovation Orientation. Journal of Small Business Management, 57(sup2), 462–488. https://doi.org/10.1111/jsbm.12498

Davidson, R., & Poor, N. (2015). The barriers facing artists’ use of crowdfunding platforms: Personality, emotional labor, and going to the well one too many times. New Media & Society, 17(2), 289–307. https://doi.org/10.1177/1461444814558916

Deng, L., Ye, Q., Xu, D., Sun, W., & Jiang, G. (2022). A literature review and integrated framework for the determinants of crowdfunding success. Financial Innovation, 8(1), 41. https://doi.org/10.1186/s40854-022-00345-6

Eldridge, D., Nisar, T. M., & Torchia, M. (2021). What impact does equity crowdfunding have on SME innovation and growth? An empirical study. Small Business Economics, 56(1), 105–120. https://doi.org/10.1007/s11187-019-00210-4

Forbes, H., & Schaefer, D. (2017). Guidelines for Successful Crowdfunding. Procedia CIRP, 60, 398–403. https://doi.org/10.1016/j.procir.2017.02.021

Gafni, H., Marom, D., & Sade, O. (2019). Are the life and death of an early-stage venture indeed in the power of the tongue? Lessons from online crowdfunding pitches. Strategic Entrepreneurship Journal, 13(1), 3–23. https://doi.org/10.1002/sej.1293

Gerber, E. M., & Hui, J. (2013a). Crowdfunding: motivations and deterrents for participation. ACM Transactions on Computer-Human Interaction, 20(6), 1–33.

Gerber, E. M., & Hui, J. (2013b). Crowdfunding: Motivations and Deterrents for Participation. ACM Transactions on Computer-Human Interaction, 20(6), 1–32. https://doi.org/10.1145/2530540

Gierczak, M. M., Bretschneider, U., Haas, P., Blohm, I., & Leimeister, J. M. (2016). Crowdfunding: Outlining the New Era of Fundraising. In Gajda, O. & Brüntje, D. (Eds.), Crowdfunding in Europe – State of the Art in Theory and Practice (pp. 7–23). Springer Science + Business Media. https://doi.org/10.1007/978-3-319-18017-5_2

Gosain, S., & Agrawal, N. (2021). Factors Affecting the Financial Success of Crowdfunding Campaigns: A Systematic Literature Review. South Asian Journal of Management, 28(3), 132–164.

Graziano, E. A., Fattobene, L., Giovando, G., & Pellicelli, A. (2023). Contacts on LinkedIn: equity crowdfunding platforms’ networks and creators’ innovation performance. European Journal of Innovation Management. https://doi.org/10.1108/EJIM-03-2022-0125

Hagel, C., Weidemann, F., Gauch, S., Edwards, S., & Tinnemann, P. (2017). Analysing published global Ebola Virus Disease research using social network analysis. PLOS Neglected Tropical Diseases, 11(10), e0005747. https://doi.org/10.1371/journal.pntd.0005747

Hariwibowo, I. N., Wulandari, C. E., & Setyohadi, D. B. (2022). Agency Relation in Online Charity Crowdfunding: The Role of Transparency to Attract Donation. IBIMA Business Review, 1–18. https://doi.org/10.5171/2022.506046

Hornuf, L., & Schwienbacher, A. (2018). Market mechanisms and funding dynamics in equity crowdfunding. Journal of Corporate Finance, 50, 556–574. https://doi.org/10.1016/j.jcorpfin.2017.08.009

Hui, J. S., Gerber, E. M., & Gergle, D. (2014). Understanding and leveraging social networks for crowdfunding. Proceedings of the 2014 Conference on Designing Interactive Systems, 677–680. https://doi.org/10.1145/2598510.2598539

Josefy, M., Dean, T. J., Albert, L. S., & Fitza, M. A. (2017). The Role of Community in Crowdfunding Success: Evidence on Cultural Attributes in Funding Campaigns to “Save the Local Theater.” Entrepreneurship Theory and Practice, 41(2), 161–182. https://doi.org/10.1111/etap.12263

Kim, J. G. ., Kong, H. Kyung., Karahalios, Karrie., Fu, W.-Tat., & Hong, Hwajung. (2016). The power of collective endorsements: credibility factors in medical crowdfunding campaigns. Proceedings of Computer Human Interaction, ACM, San Jose, 4538–4549.

Kim, Y., & Jang, S. (2018). Mapping the knowledge structure of frailty in journal articles by text network analysis. PLOS ONE, 13(4), e0196104. https://doi.org/10.1371/journal.pone.0196104

Koch, J.-A., & Siering, M. (2015). Crowdfunding Success Factors: The Characteristics of Successfully Funded Projects on Crowdfunding Platforms. Proceedings of the 23rd European Conference on Information Systems (ECIS 2015). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2808424

Kusumaningrum, S. D., Risfandy, T., Purnomowati, N. H., & Hartomo, D. D. (2023). Human Capital and Funding Success: Evidence from an Indonesian Equity Crowdfunding. The Asian Journal of Technology Management, 16(1), 52–64. https://doi.org/10.12695/ajtm.2023.16.1.4

Lambert, T., & Schwienbacher, A. (2010). An empirical analysis of crowdfunding. Social Science Research Network, 1578175, 1–23. http://ssrn.com/abstract=1578175.

Leone, D., & Schiavone, F. (2019). Innovation and knowledge sharing in crowdfunding: how social dynamics affect project success. Technology Analysis & Strategic Management, 31(7), 803–816. https://doi.org/10.1080/09537325.2018.1554858

Liu, L., Suh, A., & Wagner, C. (2018). Empathy or perceived credibility? An empirical study on individual donation behavior in charitable crowdfunding. Internet Research, 28(3), 623–651. https://doi.org/10.1108/IntR-06-2017-0240

Lynn, T., Rosati, P., Nair, B., & Bhaird, C. M. an. (2020). An exploratory data analysis of the #crowdfunding network on Twitter. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 1–22. https://doi.org/10.3390/JOITMC6030080

Manning, S., & Bejarano, T. A. (2017). Convincing the crowd: Entrepreneurial storytelling in crowdfunding campaigns. Strategic Organization, 15(2), 194–219. https://doi.org/10.1177/1476127016648500

Marra, M., Ho, W., & Lee, C. K. M. (2016). Managing supply chain knowledge-based linkages for improving operational performance. Knowledge Management Research and Practice, 14(3), 256–269. https://doi.org/10.1057/kmrp.2014.28

Menon, K., Kärkkäinen, H., Jussila, J., Huhtamäki, J., Mukkamala, R. R., Lasrado, L. A., Vatrapu, R., & Hussain, A. (2018). Analysing the role of crowdfunding in entrepreneurial ecosystems: a social media event study of two competing product launches. International Journal of Entrepreneurship and Small Business, 33(4), 575–606. https://doi.org/10.1504/IJESB.2018.090363

Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16. https://doi.org/10.1016/j.jbusvent.2013.06.005

Nitani, M., Riding, A., & He, B. (2019). On equity crowdfunding: investor rationality and success factors. Venture Capital, 21(2–3), 243–272. https://doi.org/10.1080/13691066.2018.1468542

Obschonka, M., Fisch, C., & Boyd, R. (2017). Using digital footprints in entrepreneurship research: A Twitter-based personality analysis of superstar entrepreneurs and managers. Journal of Business Venturing Insights, 8, 13–23. https://doi.org/10.1016/j.jbvi.2017.05.005

Park, S., & Park, J. (2021). Identifying the knowledge structure and trends of outreach in public health care: A text network analysis and topic modeling. International Journal of Environmental Research and Public Health, 18(17). https://doi.org/10.3390/ijerph18179309

Pratono, A. H., Prima, D. A., Sinaga, N. F. N. T., Permatasari, A., Ariani, M., & Han, L. (2020). Crowdfunding in digital humanities: some evidence from Indonesian social enterprises. Aslib Journal of Information Management, 72(2), 287–303. https://doi.org/10.1108/AJIM-05-2019-0123

Previati, D. (2021). Crowdfunding Towards the Future: The Need of Different Research Perspectives. PuntOorg International Journal, 6(1), 1–5. https://doi.org/10.19245/25.05.pij.6.1.1

Rossi, M. (2014). The New Ways to Raise Capital: An Exploratory Study of Crowdfunding. International Journal of Financial Research, 5(2). https://doi.org/10.5430/ijfr.v5n2p8

Sánchez-Franco, M. J., Muñoz-Expósito, M., & Villarejo-Ramos, Á. F. (2017). A knowledge structures exploration on social network sites. Kybernetes, 46(5), 818–839. https://doi.org/10.1108/K-01-2016-0013

Shneor, R., & Torjesen, S. (2020). Ethical Considerations in Crowdfunding. In Advances in Crowdfunding (pp. 161–182). Palgrave Macmillan, Cham. https://doi.org/https://doi.org/10.1007/978-3-030-46309-0_8

Shneor, R., & Vik, A. A. (2020). Crowdfunding success: a systematic literature review 2010–2017. Baltic Journal of Management, 15(2), 149–182. https://doi.org/10.1108/BJM-04-2019-0148

Wang, B., Osatuyi, B., & Hou, W. (2017). Effects of Donor- and Supporter-Based Campaign Networks on Crowdfunding Campaign Success. Proceedings of the 50th Hawaii International Conference on System Sciences. https://doi.org/10.24251/HICSS.2017.674

Wang, F., Kuruzovich, J. N., & Lu, Y. (2017). Entrepreneurs’ Activities on Social Media and Venture Financing. Proceedings of the 50th Hawaii International Conference on System Sciences 2017, 1944–1953.

Warwas, I., Podgórniak-Krzykacz, A., Wiktorowicz, J., & Górniak, J. (2022). Demographic and generational determinants of Poles’ participation in the sharing economy: Findings from a survey data analysis. PLOS ONE, 17(6), e0265341. https://doi.org/10.1371/journal.pone.0265341

Wichmann, B. K., & Kaufmann, L. (2016). Social network analysis in supply chain management research. International Journal of Physical Distribution & Logistics Management, 46(8), 740–762. https://doi.org/10.1108/IJPDLM-05-2015-0122

Zhang, J., & Luo, Y. (2017). Degree Centrality, Betweenness Centrality, and Closeness Centrality in Social Network. Proceedings of the 2017 2nd International Conference on Modelling, Simulation and Applied Mathematics (MSAM2017). https://doi.org/10.2991/msam-17.2017.68

Zhao, Q., Chen, C. D., Wang, J. L., & Chen, P. C. (2017). Determinants of backers’ funding intention in crowdfunding: Social exchange theory and regulatory focus. Telematics and Informatics, 34(1), 370–384.

Zhou, H., & Ye, S. (2019). Legitimacy, worthiness, and social network: An empirical study of the key factors influencing crowdfunding outcomes for nonprofit projects. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 30, 849–864. https://doi.org/https://doi.org/10.1007/s11266-018-0004-0.

Zhou, H., & Ye, S. (2021). Fundraising in the Digital Era: Legitimacy, Social Network, and Political Ties Matter in China. Voluntas, 32(2), 498–511. https://doi.org/10.1007/s11266-019-00112-9

Zhou, M., Lu, B., Fan, W., & Wang, G. A. (2018a). Project description and crowdfunding success: an exploratory study. Information Systems Frontiers, 20(2), 259–274. https://doi.org/10.1007/s10796-016-9723-1

Zhou, M., Lu, B., Fan, W., & Wang, G. A. (2018b). Project description and crowdfunding success: an exploratory study. Information Systems Frontiers, 20(2), 259–274. https://doi.org/10.1007/s10796-016-9723-1

Zolper, K., Beimborn, D., & Weitzel, T. (2014). The effect of social network structures at the business/IT interface on IT application change effectiveness. Journal of Information Technology, 29(2), 148–169. https://doi.org/10.1057/jit.2014.6




DOI: https://doi.org/10.18196/jai.v25i1.20385

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Office:
Ruang Jurnal Fakultas Ekonomi dan Bisnis UMY
Gedung Ki Bagus Hadikusuma (E4) Lantai 2, Kampus Terpadu Universitas Muhammadiyah Yogyakarta,
Jalan Brawijaya (Lingkar Selatan), Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta, Indonesia, 55183
Website: journal.umy.ac.id/index.php/ai - E-mail: jai@umy.ac.id

Journal of Accounting and Investment is licensed under Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License

View My Stats