fbpx

Dominika P. Gałkiewicz – University of Applied Sciences Kufstein Tirol, Finance, Accounting & Auditing, Andreas Hofer-Str. 7, 6330 Kufstein, Austria
Sarinya Jantapan – University of Applied Sciences Kufstein Tirol, Finance, Accounting & Auditing, Andreas Hofer-Str. 7, 6330 Kufstein, Austria

 

DOI: https://doi.org/10.31410/ITEMA.S.P.2021.73

 

5th International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2021, Online/virtual, October 21, 2021, SELECTED PAPERS published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-50-9, ISSN 2683-5991, DOI: https://doi.org/10.31410/ITEMA.S.P.2021

 

Abstract

Crowdfunding is widely recognized as an innovative financing form. It is highly popular with companies and individuals who seek financial support from local and global sources with Kickstarter.com being the most popular reward-based crowdfunding platform. In 2017, with 26 percent most of the crowdfunding money was obtained by projects from the game category (where ca. 45 percent of all campaigns were funded). The objective of this study is to determine factors influencing the success of European pro­jects from the game category on the reward-based crowdfunding platform Kickstarter.com in 2017. The findings show that setting a lower, rather than a higher, funding goal increases the probability to receive more funds. Sim­ilarly, fundraisers who communicate interactively with the crowd and keep their supporters updated, e.g. about the progress of their campaigns, new developed game features and rewards, face a higher probability to reach the pre-specified funding goal. The most important determinant is, how­ever, represented by (pre-)selling and offering products such as tabletop games, playing cards or video games as rewards. Such initiatives increase the chances for success by up to 18 percent. Our results are relevant for in­dividuals, founders, and innovative companies intending to initiate a game campaign on Kickstarter.com in Europe.

 

Keywords

Crowdfunding; Game; Kickstarter; Reward; Product

 

References

Barbi, M., & Bigelli, M. (2017). Crowdfunding practices in and outside the US. Journal of In­ternational Business and Finance, 42, 208–233. https://doi.org/10.1016/j.ribaf.2017.05.013

Bidaux, T. (2018). Crowdfunding Kickstarter in 2017 – year in review. Available at: https://ico­partners.com/2018/01/kickstarter-2017-year-review/ (25 February 2021)

Brüntje, D., & Gajda, O. (2016). Crowdfunding in Europe: state of the art in theory and practice, FGF Studies in Small Business and Entrepreneurship, Cham: Springer.

Burtch, G., Ghose, A., & Wattal, S. (2014). An empirical examination of peer referrals in online crowdfunding. Available at: https://www.researchgate.net/publication/286295879_An_em­pirical_examination_of_peer_referrals_in_online_crowdfunding (Accessed: 03 April 2021)

Cha, J. (2017). Crowdfunding for video games: Factors that influence the success of and capi­tal pledged for campaigns. International Journal on Media Management, 19(3), 240–259. https://doi.org/10.1080/14241277.2017.1331236

Chitsazan, H., & Bagheri, A. (2019). Factors affecting crowdfunding success: A systemat­ic analysis of the empirical studies. Journal of International Conference on Computa­ tional Intelligence and Knowledge Economy, (11-12), 20–24. https://doi.org/10.1109/IC­CIKE47802.2019.9004279

Colombo, M. G., Franzoni, C., & Rossi-Lamantra, C. (2015). International social capital and the attraction of early contributions in crowdfunding. Journal of Entrepreneurship and Practice, 39(1), 75–100. https://doi.org/10.1111/etap.12118

Cordova, A., Dolci, J., & Gianfrate, G. (2015). The Determinants of Crowdfunding Success: Ev­idence from Technology Projects. Journal of Social and Behavior Sciences, 181, 115–124.

Cosh, A., Cumming, D., & Hughes, A. (2009). Outside Entrepreneurial Capital. Journal of Eco­nomic, 119(540), 1494–1533. https://doi.org/10.1111/j.1468-0297.2009.02270.x

Crosetto, P., & Regner, T. (2014). Crowdfunding: Determinants of success and funding dynam­ics, Article Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena Economic Research Papers No. 2014-035.

Forbes, H., & Schaefer, D. (2017). Guidelines for successful crowdfunding. Journal of Procedia CIRP, 60, 398–403. https://doi.org/10.1016/j.procir.2017.02.021

Frydrych, D., Bock, A. J., Kinder, T., & Koeck, B. (2014). Exploring entrepreneurial legitima­cy in reward-based crowdfunding. Journal of Entrepreneurial Finance, 16(3), 247–269. https://doi.org/10.1080/13691066.2014.916512

Galkiewicz, D., & Galkiewicz, M. (2018). Crowdfunding Monitor, Bermag: Szczecin

Jensen, L. S., & Özkil, A. G. (2018). Identifying challenges in crowdfunded product development: A review of Kickstarter projects. Design Science, 4. https://doi.org/10.1017/dsj.2018.14

Kickstarter.com (2021). What are the basics? Available at: https://help.kickstarter.com/hc/en-us/ articles/115005028514-What-are-the-basics- (Accessed: 02 May 2021)

Koch, J.‑A., & Siering, M. (2015). Crowdfunding success factors: The characteristics of suc­cessfully funded projects on crowdfunding platforms. Twenty-Third European Confer­ence on Information Systems, 106.

Kromidha, E., & Robson, P. (2016). Social identity and signaling success factors in online crowdfunding. Journal of Entrepreneurship & Regional Development, 28(9-10), 605–629. https://doi.org/10.1080/08985626.2016.1198425

Kuppuswamy, V., & Bayus, B. (2013). Crowdfunding Creative Ideas: The Dynamics of Project Backers in Kickstarter, Article The Economics of Crowdfunding: Startups, Portals, and Investor Behavior paper.

Kuti, M., & Madarász, G. (2014). Crowdfunding. Journal of Public Finance Quarterly, 59(3), 355–366.

Lolli, D. (2019). ‘The fate of Shenmue is in your hands now!’: Kickstarter, video games and the financialization of crowdfunding. Convergence: The International Journal of Research into New Media Technologies, 25(5-6), 985–999. https://doi.org/10.1177/1354856518780478

Mclaughlin, M. (2016). How to crowdfund without going broke and irking your backers. Avail­able at: https://uk.pcmag.com/software/85528/how-to-crowdfund-without-going-broke-and-irking-your-backers (Accessed: 03 April 2021)

Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16. https://doi.org/10.1016/j.jbusvent.2013.06.005

Nucciarelli, A., Li, F., Fernandes, K. J., Goumagias, N., Cabras, I., Devlin, S., Kudenko, D., & Cowling, P. (2017). From value chains to technological platforms: The effects of crowd­funding in the digital game industry. Journal of Business Research, 78, 341–352. https:// doi.org/10.1016/j.jbusres.2016.12.030

Patel, P., & Devaraj, S. (2016). Influence of number of backers, goal amount, and project dura­tion on meeting funding goals of crowdfunding projects. Journal of Economics Bulletin, 2(36), 1242–1249.

Pearson, K. (1985). Vii. Mathematical contributions to the theory of evolution.—iii. Regression, heredity, and panmixia. Philosophical Transactions of the Royal Society, 187, 253–318.

Rossi, A., & Vismara, S. (2018). What do crowdfunding platforms do? A comparison between investment-based platforms in Europe. Eurasian Business Review, 8, 93–118.

Szopik-Depczyńska, K., Kędzierska-Szczepaniak, A., & Szczepaniak, K. (2020). Application of crowdfunding to video game projects financing. Journal of Procedia Computer Science, 176, 2714–2724. https://doi.org/10.1016/j.procs.2020.09.289

Tyni, H. (2020). Double Duty: Crowdfunding and the Evolving Game Production Network. Journal of Games and Culture, 15(2), 114–137. https://doi.org/10.1177/1555412017748108

Wooldridge, J. M. (2013). Introductory econometrics: A modern approach, 5th Edition, Ma­son OH: South Western Cengage Learning. Available at: https://economics.ut.ac.ir/docu­ments/3030266/14100645/Jeffrey_M._Wooldridge_Introductory_Econometrics_A_Mod­ern_Approach__2012.pdf (Accessed: 26 April 2021)

Xu, A., Yang, X., Rao, H., Fu, W.‑T., Huang, S.‑W., & Bailey, B. P. (2014). Show me the money! Journal of and Crowd Storage, 591–600. https://doi.org/10.1145/2556288.2557045

Zvilichovsky, D., Inbar, Y., & Barzilay, O. (2015). Playing both sides of the market: success and reciprocity on crowdfunding platforms. SSRN Electronic Journal, 3-42. https://doi. org/10.2139/ssrn.2304101

 

Download Full Paper

Connect with us

Association of Economists and Managers of the Balkans – UdEkoM Balkan
179 Ustanicka St, 11000 Belgrade, Serbia

https://www.udekom.org.rs/home

Udekom Balkans is a dynamic non-governmental and non-profit organization, established in 2014 with a mission to foster the growth of scientific knowledge within the Balkan region and beyond. Our primary objectives include advancing the fields of management and economics, as well as providing educational resources to our members and the wider public.

Who We Are: Our members include esteemed university professors from various scientific disciplines, postgraduate students, and experts from ministries, public administrations, private and public enterprises, multinational corporations, associations, and similar organizations.

Building Bridges Together: Over the course of ten years since our establishment, the Association of Economists and Managers of the Balkans has established impactful partnerships with more than 1,000 diverse institutions across the Balkans region and worldwide.

ITEMA conference publications are licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.