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Increasing Crowdfunding Success Through Social Media: The Importance Of Reach And Utilisation In Reward-Based Crowdfunding

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  • THOMAS CLAUSS

    (Philipps-University of Marburg, School of Business and Economics, Universitätsstraße 25a, 35037 Marburg, Germany)

  • THOMAS NIEMAND

    (Clausthal University of Technology, Department of Business Administration and Market Research, Albrecht-von-Groddeck-Straße 7, 38678 Clausthal-Zellerfeld, Germany)

  • SASCHA KRAUS

    (École Supérieure du Commerce Extérieur, ESCE International Business School, 10 Rue Sextius Michel, 75015 Paris, France)

  • PATRICK SCHNETZER

    (University of Liechtenstein, Fürst-Franz-Josef-Strasse, 9490 Vaduz, Liechtenstein)

  • ALEXANDER BREM

    (Friedrich-Alexander-Universität Erlangen-Nürnberg (FAU), Chair of Technology Management, Fürther Str. 246c, 90426 Nuremberg, Germany6University of Southern Denmark (SDU), Mads Clausen Institute, Alsion 2, 6400 Sønderborg, Denmark)

Abstract

The rising use of crowdfunding makes it important for project initiators to know how they can increase the likelihood of success of their crowdfunding campaign. The effects of using social media, although relatively easy to do via most crowdfunding platforms, have not yet been analysed in greater detail in scientific research. We address this research gap by investigating the effects of social media reach and utilisation on measures of reward-based crowdfunding success, based on an analysis of 230 projects from the crowdfunding platform wemakeit. Our results show that social media reach via the number of social media accounts that belong to the project and the number of accounts that belong to the project initiator increases the number of investors and the percentage of the funding goal that is obtained. Furthermore, social media reach via the size of the projects’ and the individuals’ social networks has not been found to be important for crowdfunding success. Social media utilisation in regard to the amount of content shared is found to be positively associated with crowdfunding success.

Suggested Citation

  • 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.
    • Handle: RePEc:wsi:ijimxx:v:24:y:2019:i:03:n:s1363919620500267
    DOI: 10.1142/S1363919620500267
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