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Exploring embeddedness, centrality, and social influence on backer behavior: the role of backer networks in crowdfunding

Author

Listed:
  • Yuho Chung

    (Lingnan University)

  • Yiwei Li

    (Lingnan University)

  • Jianmin Jia

    (The Chinese University of Hong Kong
    Shenzhen Research Institute of Big Data)

Abstract

This research examines the influence of backers’ social networks on their backing behavior using data from a large social networking site and a reward-based crowdfunding platform. We distinguish the roles of nodes and ties in a backer’s social network and assess the combined and differential effects of these two types of social relationship on the backer’s pledge decisions. As backers have different motives for engaging in different crowdfunding campaigns, which range from commercially oriented technological innovation to community-based social development, we further examine how these effects differ between technology-oriented campaigns and social-oriented campaigns. We find that node-level factors (e.g., centrality) have a greater influence on technology-oriented campaigns than on social-oriented campaigns, while tie-level factors (e.g., embeddedness) have a stronger impact on social-oriented campaigns. Considering the two forms of embeddedness in tandem, we find that the effects of relational embeddedness on backers’ pledge decisions are not only moderated by structural embeddedness but also contingent on campaign type. These results offer important theoretical insights into the drivers of contribution, which should be considered by crowdfunding operators and campaign proponents seeking to stimulate contribution.

Suggested Citation

  • Yuho Chung & Yiwei Li & Jianmin Jia, 2021. "Exploring embeddedness, centrality, and social influence on backer behavior: the role of backer networks in crowdfunding," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 925-946, September.
    • Handle: RePEc:spr:joamsc:v:49:y:2021:i:5:d:10.1007_s11747-021-00779-x
    DOI: 10.1007/s11747-021-00779-x
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    2. Francisca Jiménez-Jiménez & Maria Virtudes Alba-Fernández & Cristina Martínez-Gómez, 2021. "Attracting the Right Crowd under Asymmetric Information: A Game Theory Application to Rewards-Based Crowdfunding," Mathematics, MDPI, vol. 9(21), pages 1-23, October.
    3. Fengjiao Zhang & Hong Zhang & Sumeet Gupta, 2023. "Investor participation in reward-based crowdfunding: impacts of entrepreneur efforts, platform characteristics, and perceived value," Information Technology and Management, Springer, vol. 24(1), pages 19-36, March.
    4. Chandler, Jeffrey A. & Anglin, Aaron H. & Kanwal, Fizza & Short, Jeremy C., 2024. "No politics in funding pitches: An expectancy violations theory perspective of entrepreneurs' political expressions in crowdfunding," Journal of Business Venturing, Elsevier, vol. 39(1).
    5. Zhao, Liang & Sun, Zhe & Chen, Si & Gugnani, Ritika & Sahore, Nidhi, 2024. "Social media opinion leaders and information diffusion of crowdfunding projects: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    6. Yoo, Jenny Jeongeun & Song, Sangyoung & Jhang, Jihoon, 2022. "Overhead aversion and facial expressions in crowdfunding," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    7. Sirine Zribi, 2022. "Effects of social influence on crowdfunding performance: implications of the covid-19 pandemic," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-8, December.

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