IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v123y2021icp580-587.html
   My bibliography  Save this article

Civic crowdfunding: A new opportunity for local governments

Author

Listed:
  • De Crescenzo, Veronica
  • Botella-Carrubi, Dolores
  • Rodríguez García, María

Abstract

In civic crowdfunding, local communities are asked to financially contribute to projects aimed at the regeneration of an area. Usually a local government acts as a co-funder. This paper employs a fuzzy set qualitative comparative analysis to discover which conditions are combined and may result in the collection of a significant amount of funds. Five conditions were selected: the nature of project, the number of backers, the number of rewards, the percentage of backers that did not require a reward and the percentage of rewards not required during the fundraising campaign. The study used a sample of 40 Italian successful civic crowdfunding rounds sponsored and match-funded by a local government. The nature of the projects and the presence of rewards seem to emerge as critical influencing factors. These findings open up further investigations on the attitudes of civic backers towards rewards and on the charitable nature of civic fundraising.

Suggested Citation

  • De Crescenzo, Veronica & Botella-Carrubi, Dolores & Rodríguez García, María, 2021. "Civic crowdfunding: A new opportunity for local governments," Journal of Business Research, Elsevier, vol. 123(C), pages 580-587.
    • Handle: RePEc:eee:jbrese:v:123:y:2021:i:c:p:580-587
    DOI: 10.1016/j.jbusres.2020.10.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296320306731
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2020.10.021?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Armin Falk, "undated". "Charitable Giving as a Gift Exchange - Evidence from a Field Experiment," IEW - Working Papers 168, Institute for Empirical Research in Economics - University of Zurich.
    2. Carla Martínez-Climent & Ricardo Costa-Climent & Pejvak Oghazi, 2019. "Sustainable Financing through Crowdfunding," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    3. Thomas H. Allison & Blakley C. Davis & Jeremy C. Short & Justin W. Webb, 2015. "Crowdfunding in a Prosocial Microlending Environment: Examining the Role of Intrinsic versus Extrinsic Cues," Entrepreneurship Theory and Practice, , vol. 39(1), pages 53-73, January.
    4. Alan Tomczak & Alexander Brem, 2013. "A conceptualized investment model of crowdfunding," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 335-359, October.
    5. Calic, Goran & Shevchenko, Anton, 2020. "How signal intensity of behavioral orientations affects crowdfunding performance: The role of entrepreneurial orientation in crowdfunding business ventures," Journal of Business Research, Elsevier, vol. 115(C), pages 204-220.
    6. Chang Heon Lee & J. Leon Zhao & Ghazwan Hassna, 2016. "Government-incentivized crowdfunding for one-belt, one-road enterprises: design and research issues," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-14, December.
    7. Othmar M. Lehner, 2013. "Crowdfunding social ventures: a model and research agenda," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 289-311, October.
    8. Whitney McWade, 2012. "The Role for Social Enterprises and Social Investors in the Development Struggle," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 3(1), pages 96-112, March.
    9. Salvatore Esposito De Falco & Tiziana Volpe & Nicola Cucari, 2015. "Civic crowdfunding e valore del territorio: un?analisi empirica attraverso due piattaforme italiane," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2015(1), pages 185-202.
    10. Hudik, Marek & Chovanculiak, Robert, 2018. "Private provision of public goods via crowdfunding §," Journal of Institutional Economics, Cambridge University Press, vol. 14(1), pages 23-44, February.
    11. Armin Falk, 2004. "Charitable Giving as a Gift Exchange – Evidence from a Field Experiment (new title: Gift-Exchange in the Field)," CESifo Working Paper Series 1218, CESifo.
    12. Daniel A Brent & Nathan W Chan, 2019. "Local Public Goods and the Crowding-out Hypothesis: Evidence from Civic Crowdfunding," Economics Bulletin, AccessEcon, vol. 39(3), pages 2142-2154.
    13. Nathalie Colasanti & Rocco Frondizi & Marco Meneguzzo, 2018. "Higher education and stakeholders’ donations: successful civic crowdfunding in an Italian university," Public Money & Management, Taylor & Francis Journals, vol. 38(4), pages 281-288, June.
    14. Gordon Burtch & Anindya Ghose & Sunil Wattal, 2013. "An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets," Information Systems Research, INFORMS, vol. 24(3), pages 499-519, September.
    15. Goran Calic & Elaine Mosakowski, 2016. "Kicking Off Social Entrepreneurship: How A Sustainability Orientation Influences Crowdfunding Success," Journal of Management Studies, Wiley Blackwell, vol. 53(5), pages 738-767, July.
    16. 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.
    17. Claire Charbit & Guillaume Desmoulins, 2017. "Civic Crowdfunding: A collective option for local public goods?," OECD Regional Development Working Papers 2017/2, OECD Publishing.
    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. Cervantes-Zacarés, Desamparados & Martí-Sánchez, Myriam & Pascual-Soler, Marcos & Berné-Martínez, José-Miguel, 2023. "The relevance of crowdfunding in the entrepreneurial framework from a specialized media perspective," Journal of Business Research, Elsevier, vol. 158(C).
    2. Hajiheydari, Nastaran & Delgosha, Mohammad Soltani, 2023. "Citizens' support in social mission platforms: Unravelling configurations for participating in civic crowdfunding platforms," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    3. Aitziber Egusquiza & Maider Arana-Bollar & Amaia Sopelana & Javier Babí Almenar, 2021. "Conceptual and Operational Integration of Governance, Financing, and Business Models for Urban Nature-Based Solutions," Sustainability, MDPI, vol. 13(21), pages 1-28, October.
    4. Piñeiro-Chousa, Juan & López-Cabarcos, M. Ángeles & Pérez-Pico, Ada M. & Caby, Jérôme, 2023. "The influence of Twitch and sustainability on the stock returns of video game companies: Before and after COVID-19," Journal of Business Research, Elsevier, vol. 157(C).
    5. Radoslaw Luft & Adam Weinert, 2021. "Analysis of the Crowdfunding European Market: Performance and Perspectives," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 632-644.

    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. 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.
    2. Sven Siebeneicher & Ilker Yenice & Carolin Bock, 2022. "Financial-Return Crowdfunding for Energy and Sustainability in the German-Speaking Realm," Sustainability, MDPI, vol. 14(19), pages 1-23, September.
    3. Bagheri, Afsaneh & Chitsazan, Hasti & Ebrahimi, Ashkan, 2019. "Crowdfunding motivations: A focus on donors' perspectives," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 218-232.
    4. Saurav Chandra Talukder & Zoltán Lakner, 2023. "Exploring the Landscape of Social Entrepreneurship and Crowdfunding: A Bibliometric Analysis," Sustainability, MDPI, vol. 15(12), pages 1-22, June.
    5. Kristian Roed Nielsen & Julia Katharina Binder, 2021. "I Am What I Pledge: The Importance of Value Alignment for Mobilizing Backers in Reward-Based Crowdfunding," Entrepreneurship Theory and Practice, , vol. 45(3), pages 531-561, May.
    6. Chaney, Damien, 2019. "A principal–agent perspective on consumer co-production: Crowdfunding and the redefinition of consumer power," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 74-84.
    7. Messeni Petruzzelli, Antonio & Natalicchio, Angelo & Panniello, Umberto & Roma, Paolo, 2019. "Understanding the crowdfunding phenomenon and its implications for sustainability," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 138-148.
    8. Lu, Yujie & Chang, Ruidong & Lim, Suxann, 2018. "Crowdfunding for solar photovoltaics development: A review and forecast," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 439-450.
    9. Indu Khurana, 2021. "Legitimacy and Reciprocal Altruism in Donation-Based Crowdfunding: Evidence from India," JRFM, MDPI, vol. 14(5), pages 1-16, April.
    10. Laurell, Christofer & Sandström, Christian & Suseno, Yuliani, 2019. "Assessing the interplay between crowdfunding and sustainability in social media," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 117-127.
    11. Janice A. Hauge & Stanley Chimahusky, 2016. "Are Promises Meaningless In An Uncertain Crowdfunding Environment?," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1621-1630, July.
    12. Xiaobei Liang & Xiaojuan Hu & Jiang Jiang, 2020. "Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication," Sustainability, MDPI, vol. 12(2), pages 1-36, January.
    13. Francesca Simeoni & Veronica De Crescenzo, 2018. "Ecomuseums (on Clean Energy), Cycle Tourism and Civic Crowdfunding: A New Match for Sustainability?," Sustainability, MDPI, vol. 10(3), pages 1-16, March.
    14. Friedemann Polzin & Helen Toxopeus & Erik Stam, 2018. "The wisdom of the crowd in funding: information heterogeneity and social networks of crowdfunders," Small Business Economics, Springer, vol. 50(2), pages 251-273, February.
    15. Felipe, Israel José dos Santos & Mendes-Da-Silva, Wesley & Leal, Cristiana Cerqueira & Braun Santos, Danilo, 2022. "Reward crowdfunding campaigns: Time-to-success analysis," Journal of Business Research, Elsevier, vol. 138(C), pages 214-228.
    16. Andrea Rey-Martí & Antonia Mohedano-Suanes & Virginia Simón-Moya, 2019. "Crowdfunding and Social Entrepreneurship: Spotlight on Intermediaries," Sustainability, MDPI, vol. 11(4), pages 1-23, February.
    17. Stefania Testa & Paolo Roma & Maria Vasi & Silvano Cincotti, 2020. "Crowdfunding as a tool to support sustainability‐oriented initiatives: Preliminary insights into the role of product/service attributes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 530-546, February.
    18. Wehnert, Peter & Baccarella, Christian V. & Beckmann, Markus, 2019. "In crowdfunding we trust? Investigating crowdfunding success as a signal for enhancing trust in sustainable product features," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 128-137.
    19. Presenza, Angelo & Abbate, Tindara & Cesaroni, Fabrizio & Appio, Francesco Paolo, 2019. "Enacting Social Crowdfunding Business Ecosystems: The case of the platform Meridonare," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 190-201.
    20. F. Levin, 2015. "Success Determinants Of Crowdfunding Projects," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 3(4), pages 79-87.

    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:eee:jbrese:v:123:y:2021:i:c:p:580-587. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    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.