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Social capital and the digital crowd: Involving backers to promote new product innovativeness

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  • Eiteneyer, Nils
  • Bendig, David
  • Brettel, Malte

Abstract

Involving customers is often considered a method to develop products in line with market needs. However, we still need to obtain more insights into the respective drivers and outcomes in the context of (a) the involvement of customers by entrepreneurial ventures and (b) business-to-consumer (B2C) relationships. This study suggests that reward-based crowdfunding can provide a digital opportunity for both areas. We explore how community-derived social capital influences ventures’ approach to engaging backers in new product development and how this, in turn, advances product innovativeness. Using structural equation modeling, we test a unique dataset that combines primary survey and secondary platform data from 710 crowdfunding ventures. Our results provide a nuanced picture of how social capital dimensions are associated with backers as an information source and as co-developers and, indirectly, with new product innovativeness. This study underscores that crowdfunding serves as a digital platform for market-oriented innovation. It contributes empirical insights into how nascent teams can engage the digital crowd in product development via crowdfunding. We also add to social capital literature by illuminating web-mediated mechanisms that transform knowledge into tangible innovation outcomes.

Suggested Citation

  • Eiteneyer, Nils & Bendig, David & Brettel, Malte, 2019. "Social capital and the digital crowd: Involving backers to promote new product innovativeness," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    • Handle: RePEc:eee:respol:v:48:y:2019:i:8:5
    DOI: 10.1016/j.respol.2019.01.017
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    20. 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).

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    More about this item

    Keywords

    Crowdfunding; Co-creation; Digitization; Open innovation; Social capital; Startups;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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