IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v157y2023ics014829632201027x.html
   My bibliography  Save this article

Reward-based crowdfunding for building a valuable circular business model

Author

Listed:
  • Leone, Daniele
  • Cristina Pietronudo, Maria
  • Gabteni, Heger
  • Rosaria Carli, Maria

Abstract

Reward-based crowdfunding is a source of funds for innovative start-ups. However, prior literature paid little attention to how this phenomenon occurs when such micro-firms market products and services within the context of the so-called circular economy (CE) and for more sustainable innovation. We aim to explore the potential of reward-based crowdfunding in designing and orchestrating a circular business model for micro-firms. Drawing on this evidence, the present study performs a multiple case study analysis of selected best practices by sustainable projects funded on the Kickstarter platform. Results show that reward-based crowdfunding shapes circular business models (CBM) in informational mechanisms, collaborative innovation networks, and marketing aspects. Furthermore, reward-based crowdfunding reduces risks connected to the CBM, such as uncertainty and the long-range perspective for campaign creators and customers.

Suggested Citation

  • Leone, Daniele & Cristina Pietronudo, Maria & Gabteni, Heger & Rosaria Carli, Maria, 2023. "Reward-based crowdfunding for building a valuable circular business model," Journal of Business Research, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:jbrese:v:157:y:2023:i:c:s014829632201027x
    DOI: 10.1016/j.jbusres.2022.113562
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014829632201027X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2022.113562?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. Testa, Stefania & Nielsen, Kristian Roed & Bogers, Marcel & Cincotti, Silvano, 2019. "The role of crowdfunding in moving towards a sustainable society," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 66-73.
    2. Lei Guan & Yongxue Mu & Xiaolin Xu & Lianmin Zhang & Jun Zhuang, 2020. "Keep it or give back? Optimal pricing strategy of reward-based crowdfunding with a hybrid mechanism in the sharing economy," International Journal of Production Research, Taylor & Francis Journals, vol. 58(22), pages 6868-6889, November.
    3. Belleflamme, Paul & Omrani, Nessrine & Peitz, Martin, 2015. "The economics of crowdfunding platforms," Information Economics and Policy, Elsevier, vol. 33(C), pages 11-28.
    4. Walter R. Stahel, 2010. "Sustainability and the Performance Economy," Palgrave Macmillan Books, in: The Performance Economy, edition 2, chapter 4, pages 269-287, Palgrave Macmillan.
    5. Christoph Zott & Raphael Amit, 2008. "The fit between product market strategy and business model: implications for firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(1), pages 1-26, January.
    6. Arnold Tukker, 2004. "Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 246-260, July.
    7. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    8. Paschen, Jeannette, 2017. "Choose wisely: Crowdfunding through the stages of the startup life cycle," Business Horizons, Elsevier, vol. 60(2), pages 179-188.
    9. Troise, Ciro & Tani, Mario & Dinsmore, John & Schiuma, Giovanni, 2021. "Understanding the implications of equity crowdfunding on sustainability-oriented innovation and changes in agri-food systems: Insights into an open innovation approach," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    10. Ajay Agrawal & Christian Catalini & Avi Goldfarb, 2014. "Some Simple Economics of Crowdfunding," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 63-97.
    11. Sewaid, Ahmed & Garcia-Cestona, Miguel & Silaghi, Florina, 2021. "Resolving information asymmetries in financing new product development: The case of reward-based crowdfunding," Research Policy, Elsevier, vol. 50(10).
    12. Lee, Michael T. & Raschke, Robyn L., 2020. "Innovative sustainability and stakeholders’ shared understanding: The secret sauce to “performance with a purpose”," Journal of Business Research, Elsevier, vol. 108(C), pages 20-28.
    13. Damien Chaney, 2019. "A principal–agent perspective on consumer co-production: Crowdfunding and the redefinition of consumer power," Post-Print hal-02047974, HAL.
    14. Ahsan, Mujtaba & Musteen, Martina, 2021. "International opportunity development on crowdfunding platforms: A spatial, temporal, and structural framework," International Business Review, Elsevier, vol. 30(6).
    15. Walter R. Stahel, 2010. "The Performance Economy," Palgrave Macmillan Books, Palgrave Macmillan, edition 2, number 978-0-230-27490-7.
    16. Hopp, Christian & Kaminski, Jermain & Piller, Frank, 2019. "Accentuating lead user entrepreneur characteristics in crowdfunding campaigns – The role of personal affection and the capitalization of positive events," Journal of Business Venturing Insights, Elsevier, vol. 11(C), pages 1-1.
    17. 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.
    18. Viotto da Cruz, Jordana, 2018. "Beyond financing: crowdfunding as an informational mechanism," Journal of Business Venturing, Elsevier, vol. 33(3), pages 371-393.
    19. Walter R. Stahel, 2010. "The Performance Economy," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-28884-3.
    20. 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.
    21. 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.
    22. 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.
    23. Vismara, Silvio, 2019. "Sustainability in equity crowdfunding," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 98-106.
    24. Walter R. Stahel, 2010. "Sustainability and the Performance Economy," Palgrave Macmillan Books, in: The Performance Economy, edition 0, chapter 4, pages 269-287, Palgrave Macmillan.
    25. Brown, Terrence E. & Boon, Edward & Pitt, Leyland F., 2017. "Seeking funding in order to sell: Crowdfunding as a marketing tool," Business Horizons, Elsevier, vol. 60(2), pages 189-195.
    26. Stanko, Michael A. & Henard, David H., 2017. "Toward a better understanding of crowdfunding, openness and the consequences for innovation," Research Policy, Elsevier, vol. 46(4), pages 784-798.
    27. Marcus Linder & Mats Williander, 2017. "Circular Business Model Innovation: Inherent Uncertainties," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 182-196, February.
    28. Daniele Leone & Francesco Schiavone & Luca Dezi, 2018. "Post-Campaign Operational Problems Hindering Promised Rewards in Crowdfunding Projects," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 173-194.
    Full references (including those not matched with items on IDEAS)

    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. Troise, Ciro & Tani, Mario & Dinsmore, John & Schiuma, Giovanni, 2021. "Understanding the implications of equity crowdfunding on sustainability-oriented innovation and changes in agri-food systems: Insights into an open innovation approach," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    2. 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.
    3. Anna Prisco & Valerio Muto & Ciro Troise & Mario Tani, 2022. "How to Engage the Crowds to Create Value? Evidence from the Pathfinder Arena Case," Sustainability, MDPI, vol. 14(7), pages 1-22, April.
    4. Hörisch, Jacob & Tenner, Isabell, 2020. "How environmental and social orientations influence the funding success of investment-based crowdfunding: The mediating role of the number of funders and the average funding amount," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    5. Laffey, Des & Durkin, Mark & Cummins, Darryl & Gandy, Anthony, 2021. "A shift in power? Value co-creation through successful crowdfunding," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    6. Erik G. Hansen & Ferdinand Revellio, 2020. "Circular value creation architectures: Make, ally, buy, or laissez‐faire," Journal of Industrial Ecology, Yale University, vol. 24(6), pages 1250-1273, December.
    7. Kristoffersen, Eivind & Mikalef, Patrick & Blomsma, Fenna & Li, Jingyue, 2021. "The effects of business analytics capability on circular economy implementation, resource orchestration capability, and firm performance," International Journal of Production Economics, Elsevier, vol. 239(C).
    8. Louise Laumann Kjaer & Daniela C. A. Pigosso & Monia Niero & Nynne Marie Bech & Tim C. McAloone, 2019. "Product/Service‐Systems for a Circular Economy: The Route to Decoupling Economic Growth from Resource Consumption?," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 22-35, February.
    9. Alexa Böckel & Jacob Hörisch & Isabell Tenner, 2021. "A systematic literature review of crowdfunding and sustainability: highlighting what really matters," Management Review Quarterly, Springer, vol. 71(2), pages 433-453, April.
    10. Swati Gupta & Sahil Raj & Sanjay Gupta & Ajay Sharma, 2023. "Prioritising crowdfunding benefits: a fuzzy-AHP approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 379-403, February.
    11. Junge, Louise Bech & Laursen, Iben Cleveland & Nielsen, Kristian Roed, 2022. "Choosing crowdfunding: Why do entrepreneurs choose to engage in crowdfunding?," Technovation, Elsevier, vol. 111(C).
    12. Vivian S. C. Tunn & Ellis A. Van den Hende & Nancy M. P. Bocken & Jan P. L. Schoormans, 2021. "Consumer adoption of access‐based product‐service systems: The influence of duration of use and type of product," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2796-2813, September.
    13. Andrea Caputo & Elisa Schiocchet & Ciro Troise, 2022. "Sustainable business models as successful drivers in equity crowdfunding," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3509-3522, November.
    14. Appio, Francesco Paolo & Leone, Daniele & Platania, Federico & Schiavone, Francesco, 2020. "Why are rewards not delivered on time in rewards-based crowdfunding campaigns? An empirical exploration," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    15. Tuo Gladys & Yi Feng & Wang Wenxin & Sarpong Solomon, 2020. "The Second Round Resource Acquisition of Entrepreneurial Crowdfunded Ventures: The Relevance of Campaign and Project Implementation Performance Outcomes," Entrepreneurship Research Journal, De Gruyter, vol. 10(3), pages 1-21, July.
    16. Peter Konhäusner, 2021. "Crowdsourcing in Sustainable Retail—A Theoretical Framework of Success Criteria," JRFM, MDPI, vol. 14(2), pages 1-21, February.
    17. Carolin Bock & Sven Siebeneicher & Jens Rockel, 2022. "The “C” in crowdfunding is for co-financing: exploring participative co-financing, a complement of novel and traditional bank financing," Journal of Business Economics, Springer, vol. 92(9), pages 1559-1602, November.
    18. Andreas Wald & Merete Holmesland & Kalanit Efrat, 2019. "It Is Not All About Money: Obtaining Additional Benefits Through Equity Crowdfunding," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 28(2), pages 270-294, September.
    19. Antonello Cammarano & Vincenzo Varriale & Francesca Michelino & Mauro Caputo, 2022. "Open and Crowd-Based Platforms: Impact on Organizational and Market Performance," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    20. Maria Kukurba & Aneta Ewa Waszkiewicz & Mariusz Salwin & Andrzej Kraslawski, 2021. "Co-Created Values in Crowdfunding for Sustainable Development of Enterprises," Sustainability, MDPI, vol. 13(16), pages 1-21, August.

    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:157:y:2023:i:c:s014829632201027x. 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.