The Kindness of Strangers? An Investigation into the Interaction of Funder Motivations in Online Crowdfunding Campaigns

26 Pages Posted: 23 Apr 2018

See all articles by Joe Cox

Joe Cox

University of Portsmouth

Thang Nguyen

Portsmouth Business School

Soong Moon Kang

University College London - School of Management

Date Written: May 2018

Abstract

This study investigates the interaction of motivations among contributors to online crowdfunding campaigns. Based on evidence from the literature on philanthropic behaviour, we argue that funder behaviour is likely to be driven by a combination of intrinsic, extrinsic and image enhancement motivations. We undertake an empirical investigation into the relationships between these factors by analysing data from an online rewards‐based crowdfunding platform. These data not only reveal the monetary values of individual contributions to fundraising campaigns but also indicate particular combinations of motivations based on the material reward selected (if any) and the decision as to whether or not to contribute anonymously. We find that extrinsically motivated funders generally make larger contributions than intrinsically motivated funders, which does not suggest the presence of a ‘crowding‐out’ effect given the presence of material incentives. We further show that named funders with intrinsic motivations contribute more than anonymous funders with intrinsic motivations, whereas the same pattern of behaviour is not observed among extrinsically motivated funders. The evidence from our study therefore suggests that image concerns interact with intrinsic and extrinsic motivations in different ways.

Suggested Citation

Cox, Joe and Nguyen, Thang and Kang, Soong Moon, The Kindness of Strangers? An Investigation into the Interaction of Funder Motivations in Online Crowdfunding Campaigns (May 2018). Kyklos, Vol. 71, Issue 2, pp. 187-212, 2018, Available at SSRN: https://ssrn.com/abstract=3166347 or http://dx.doi.org/10.1111/kykl.12167

Joe Cox (Contact Author)

University of Portsmouth ( email )

University House
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HOME PAGE: http://tinyurl.com/drjcox

Thang Nguyen

Portsmouth Business School ( email )

Portsmouth, PO1 3DE
United Kingdom

Soong Moon Kang

University College London - School of Management

Gower Street
London, WC1E 6BT
United Kingdom

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