What influences contribution behavior in Crowdfunding?

Abstract

Crowdfunding has emerged as the popular medium of financing the project. It is the major source of potential capital. Many people are contributing to these types of crowdfunding projects. There is a research gap on crowdfunding which tries to identify why people contribute to certain projects and not in other projects. Research question for our research is factors influencing contribution behavior in crowdfunding. The primary aim of paper is to explore the relationship between various independent factors and contribution behavior. To explore the factors influencing contribution behavior this paper considers the academic literature, newspaper articles and interviews with participants who have contributed in such campaigns through qualitative case study research design approach. Based on the literature proposition were formed and analyzed. Data collection was carried out through semi-structured interviews with the people who had participated in crowdfunding projects. Analyzing each case, a conclusion was drawn based on findings to identify the factors influencing contribution behavior. The study concludes with recommendations for future campaigners to design their campaign considering the factors that can attract more contributors to contribute to their project. Keywords: crowdfunding, contribution factors, motivation, alternative finance