Motivating IT-Mediated Crowds: The Effect of Goal Setting on Project Performance in Online Crowdfunding

32 Pages Posted: 22 Oct 2015

See all articles by Zhuoxin Li

Zhuoxin Li

Boston College - Carroll School of Management

Sirkka Jarvenpaa

University of Texas at Austin - Red McCombs School of Business

Date Written: September 30, 2015

Abstract

In traditional organizations, stretch goals - difficult and seemingly unattainable goals - have been much debated for their paradoxical effects. Recently, their use as a managerial instrument in IT-mediated crowds has increased. Using online crowdfunding on Kickstarter as an example, we investigate how the use of stretch goals influences project performance. Empirical results show that the use of stretch goals is associated with better project funding performance. Such positive effect is even stronger for projects with higher levels of community engagement. However, stretch goals are less effective in project categories where stretch goals are less novel. Our empirical results also reveal that the use of stretch goals significantly increases a project’s likelihood of delivery delay. These results shed light on the potential dark side of using stretch goals in IT-mediated crowds.

Keywords: Goal setting, stretch goals, IT-mediated crowds, motivation, crowdfunding, online community, engagement

Suggested Citation

Li, Zhuoxin and Jarvenpaa, Sirkka, Motivating IT-Mediated Crowds: The Effect of Goal Setting on Project Performance in Online Crowdfunding (September 30, 2015). NET Institute Working Paper No. 15-07, Available at SSRN: https://ssrn.com/abstract=2672056 or http://dx.doi.org/10.2139/ssrn.2672056

Zhuoxin Li (Contact Author)

Boston College - Carroll School of Management ( email )

140 Commonwealth Ave
Chestnut Hill, MA Massachusetts 02467
United States

Sirkka Jarvenpaa

University of Texas at Austin - Red McCombs School of Business ( email )

Austin, TX 78712
United States

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