IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v30y2019i2p447-465.html
   My bibliography  Save this article

Talking Up a Storm: How Backers Use Public Discourse to Exert Control in Crowdfunded Systems Development Projects

Author

Listed:
  • Rob Gleasure

    (Copenhagen Business School, 2000 Frederiksberg, Denmark;)

  • Kieran Conboy

    (National University of Ireland, Galway H91 TK33, Ireland)

  • Lorraine Morgan

    (National University of Ireland, Galway H91 TK33, Ireland)

Abstract

Crowdfunding has emerged as a popular alternative to traditional funding, wherein project owners use web technologies to fundraise from members of the public (“backers”). The established models of control do not work for this new way of performing systems development, because of the number and diversity of controllers, the restriction of interaction to public online discourse, and the absence of defined hierarchical power structures. This study performs a critical discourse analysis of public online discourse from two famous crowdfunded systems development projects. It develops a framework for the study of crowdfunding control that incorporates the prominent role that power, informal control, and discourse play. The study shows that backers are empowered by their ability to construct a positive or negative public image around a project, and they use this power to impose a diverse portfolio of formal and informal controls. Findings reveal a fundamental vulnerability in crowdfunding, as public perceptions of failure push backers to become increasingly assertive and owners to become decreasingly compliant.The online appendix is available at https://doi.org/10.1287/isre.2019.0840 .

Suggested Citation

  • Rob Gleasure & Kieran Conboy & Lorraine Morgan, 2019. "Talking Up a Storm: How Backers Use Public Discourse to Exert Control in Crowdfunded Systems Development Projects," Information Systems Research, INFORMS, vol. 30(2), pages 447-465, June.
    • Handle: RePEc:inm:orisre:v:30:y:2019:i:2:p:447-465
    DOI: 10.1287/isre.2019.0840
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/isre.2019.0840
    Download Restriction: no
    File URL: https://libkey.io/10.1287/isre.2019.0840?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Natalia Levina, 2005. "Collaborating on Multiparty Information Systems Development Projects: A Collective Reflection-in-Action View," Information Systems Research, INFORMS, vol. 16(2), pages 109-130, June.
    2. Wanda J. Orlikowski & Jack J. Baroudi, 1991. "Studying Information Technology in Organizations: Research Approaches and Assumptions," Information Systems Research, INFORMS, vol. 2(1), pages 1-28, March.
    3. Massimo G. Colombo & Chiara Franzoni & Cristina Rossi–Lamastra, 2015. "Internal Social Capital and the Attraction of Early Contributions in Crowdfunding," Entrepreneurship Theory and Practice, , vol. 39(1), pages 75-100, January.
    4. Vivek Choudhury & Rajiv Sabherwal, 2003. "Portfolios of Control in Outsourced Software Development Projects," Information Systems Research, INFORMS, vol. 14(3), pages 291-314, September.
    5. West, Joel, 2003. "How open is open enough?: Melding proprietary and open source platform strategies," Research Policy, Elsevier, vol. 32(7), pages 1259-1285, July.
    6. Wessel, Michael & Thies, Ferdinand & Benlian, Alexander, 2016. "The Emergence and Effects of Fake Social Information: Evidence from Crowdfunding," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82421, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. Laurie J. Kirsch, 1996. "The Management of Complex Tasks in Organizations: Controlling the Systems Development Process," Organization Science, INFORMS, vol. 7(1), pages 1-21, February.
    8. Ajay Agrawal & Christian Catalini & Avi Goldfarb, 2015. "Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(2), pages 253-274, June.
    9. Paul Belleflamme & Thomas Lambert & Armin Schwienbacher, 2013. "Individual crowdfunding practices," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 313-333, October.
    10. von Krogh, Georg & Spaeth, Sebastian & Lakhani, Karim R., 2003. "Community, joining, and specialization in open source software innovation: a case study," Research Policy, Elsevier, vol. 32(7), pages 1217-1241, July.
    11. Likoebe M. Maruping & Viswanath Venkatesh & Ritu Agarwal, 2009. "A Control Theory Perspective on Agile Methodology Use and Changing User Requirements," Information Systems Research, INFORMS, vol. 20(3), pages 377-399, September.
    12. Thies, Ferdinand & Wessel, Michael & Benlian, Alexander, 2014. "Understanding the Dynamic Interplay of Social Buzz and Contribution Behavior within and between Online Platforms – Evidence from Crowdfunding," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 66131, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    13. William G. Ouchi, 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, INFORMS, vol. 25(9), pages 833-848, September.
    14. Henkel, Joachim, 2006. "Selective revealing in open innovation processes: The case of embedded Linux," Research Policy, Elsevier, vol. 35(7), pages 953-969, September.
    15. Wessel, Michael & Thies, Ferdinand & Benlian, Alexander, 2016. "The Emergence and Effects of Fake Social Information: Evidence from Crowdfunding," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 83005, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    16. Kathleen M. Eisenhardt, 1985. "Control: Organizational and Economic Approaches," Management Science, INFORMS, vol. 31(2), pages 134-149, February.
    17. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    18. Michael L. Harris & Rosann Webb Collins & Alan R. Hevner, 2009. "Control of Flexible Software Development Under Uncertainty," Information Systems Research, INFORMS, vol. 20(3), pages 400-419, September.
    19. Laurie J. Kirsch & Dong-Gil Ko & Mark H. Haney, 2010. "Investigating the Antecedents of Team-Based Clan Control: Adding Social Capital as a Predictor," Organization Science, INFORMS, vol. 21(2), pages 469-489, April.
    20. Laurie S. Kirsch, 1997. "Portfolios of Control Modes and IS Project Management," Information Systems Research, INFORMS, vol. 8(3), pages 215-239, September.
    21. Laurie J. Kirsch & V. Sambamurthy & Dong-Gil Ko & Russell L. Purvis, 2002. "Controlling Information Systems Development Projects: The View from the Client," Management Science, INFORMS, vol. 48(4), pages 484-498, April.
    22. Choon-Ling Sia & Bernard C. Y. Tan & Kwok-Kee Wei, 2002. "Group Polarization and Computer-Mediated Communication: Effects of Communication Cues, Social Presence, and Anonymity," Information Systems Research, INFORMS, vol. 13(1), pages 70-90, March.
    23. Pitschner, Stefan & Pitschner-Finn, Sebastian, 2014. "Non-profit differentials in crowd-based financing: Evidence from 50,000 campaigns," Economics Letters, Elsevier, vol. 123(3), pages 391-394.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferdinand Thies & Sören Wallbach & Michael Wessel & Markus Besler & Alexander Benlian, 2022. "Initial coin offerings and the cryptocurrency hype - the moderating role of exogenous and endogenous signals," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1691-1705, September.
    2. Yu-Kai Lin & Arun Rai & Yukun Yang, 2022. "Information Control for Creator Brand Management in Subscription-Based Crowdfunding," Information Systems Research, INFORMS, vol. 33(3), pages 846-866, September.
    3. Roma, Paolo & Vasi, Maria & Kolympiris, Christos, 2021. "On the signaling effect of reward-based crowdfunding: (When) do later stage venture capitalists rely more on the crowd than their peers?," Research Policy, Elsevier, vol. 50(6).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alex Estevam & Denis Dennehy & Kieran Conboy, 2022. "Using Flow Tools to Enact Control in Software Development Projects: A Cross-case Analysis," Information Systems Frontiers, Springer, vol. 24(1), pages 287-304, February.
    2. Gregory D. Moody & Laurie J. Kirsch & Sandra A. Slaughter & Brian Kimball Dunn & Qin Weng, 2016. "Facilitating the Transformational: An Exploration of Control in Cyberinfrastructure Projects and the Discovery of Field Control," Information Systems Research, INFORMS, vol. 27(2), pages 324-346, June.
    3. Tanja Jovanović, 2019. "Crowdfunding: What Do We Know So Far?," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 1-25, February.
    4. Anandasivam Gopal & Sanjay Gosain, 2010. "Research Note ---The Role of Organizational Controls and Boundary Spanning in Software Development Outsourcing: Implications for Project Performance," Information Systems Research, INFORMS, vol. 21(4), pages 960-982, December.
    5. Liu, Shan & Deng, Zhaohua, 2015. "How environment risks moderate the effect of control on performance in information technology projects: Perspectives of project managers and user liaisons," International Journal of Information Management, Elsevier, vol. 35(1), pages 80-97.
    6. Wessel, Michael & Thies, Ferdinand & Benlian, Alexander, 2015. "The Effects of Relinquishing Control in Platform Ecosystems: Implications from a Policy Change on Kickstarter," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75205, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. Sandeep Rustagi & William R. King & Laurie J. Kirsch, 2008. "Predictors of Formal Control Usage in IT Outsourcing Partnerships," Information Systems Research, INFORMS, vol. 19(2), pages 126-143, June.
    8. Thomas Clauss & Thomas Niemand & Sascha Kraus & Patrick Schnetzer & Alexander Brem, 2019. "Increasing Crowdfunding Success Through Social Media: The Importance Of Reach And Utilisation In Reward-Based Crowdfunding," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-30, May.
    9. Downes, Rebecca & Daellenbach, Urs & Donnelly, Noelle, 2023. "Remote control: Attitude monitoring and informal control in distributed teams," Journal of Business Research, Elsevier, vol. 154(C).
    10. Donghwan Cho, 2019. "Exploring the Ambivalent Effects of Control Modes on Project Performance Dimensions in Software Development Outsourcing," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 9(1), pages 1-7, January.
    11. Pankaj Nagpal & Andreas I. Nicolaou & Kalle Lyytinen, 2014. "Outsourcing And Market Value Of The Firm: Toward A Comprehensive Model," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 21(1), pages 19-38, January.
    12. Huigang Liang & Yajiong Xue & Liansheng Wu, 2013. "Ensuring Employees' IT Compliance: Carrot or Stick?," Information Systems Research, INFORMS, vol. 24(2), pages 279-294, June.
    13. Laurie J. Kirsch & Dong-Gil Ko & Mark H. Haney, 2010. "Investigating the Antecedents of Team-Based Clan Control: Adding Social Capital as a Predictor," Organization Science, INFORMS, vol. 21(2), pages 469-489, April.
    14. Likoebe M. Maruping & Viswanath Venkatesh & Ritu Agarwal, 2009. "A Control Theory Perspective on Agile Methodology Use and Changing User Requirements," Information Systems Research, INFORMS, vol. 20(3), pages 377-399, September.
    15. Donghwan Cho, 2019. "Exploring the Ambivalent Effects of Control Modes on Project Performance Dimensions in Software Development Outsourcing," International Journal of Business and Social Research, LAR Center Press, vol. 9(1), pages 1-7, January.
    16. Andreas Hoegen & Dennis M. Steininger & Daniel Veit, 2018. "How do investors decide? An interdisciplinary review of decision-making in crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 339-365, August.
    17. Laurie J. Kirsch, 2004. "Deploying Common Systems Globally: The Dynamics of Control," Information Systems Research, INFORMS, vol. 15(4), pages 374-395, December.
    18. Alan R. Dennis & Lionel P. Robert & Aaron M. Curtis & Stacy T. Kowalczyk & Bryan K. Hasty, 2012. "Research Note ---Trust Is in the Eye of the Beholder: A Vignette Study of Postevent Behavioral Controls' Effects on Individual Trust in Virtual Teams," Information Systems Research, INFORMS, vol. 23(2), pages 546-558, June.
    19. Bart A. De Jong & Katinka M. Bijlsma-Frankema & Laura B. Cardinal, 2014. "Stronger Than the Sum of Its Parts? The Performance Implications of Peer Control Combinations in Teams," Organization Science, INFORMS, vol. 25(6), pages 1703-1721, December.
    20. Yang, Feifei & Shinkle, George A. & Goudsmit, Mirjam, 2022. "The efficacy of organizational control interactions: External environmental uncertainty as a critical contingency," Journal of Business Research, Elsevier, vol. 139(C), pages 855-868.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orisre:v:30:y:2019:i:2:p:447-465. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.