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Integrating FMEA and fuzzy super-efficiency SBM for risk assessment of crowdfunding project investment

  • Application of soft computing
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Abstract

Crowdfunding based on the network platform has become a valuable paradigm for entrepreneurs to seek funding for their initiatives or businesses. Given the issue of information asymmetry, high financing failure rates, and high market risk in crowdfunding project investment, prompt risk identification and assessment can help to lessen the detrimental impact on backers. Therefore, this study presents a risk assessment approach for the risk assessment of crowdfunding project investment by integrating failure mode and effect analysis (FMEA) and the fuzzy super-efficiency slacks-based measure (SBM). Firstly, in addition to the existing parameters of severity, occurrence, and detection, two parameters called the probability of losing control, and the expected costs are attached to the FMEA model for the characteristics of crowdfunding projects. Then, considering the vagueness and uncertainty of FMEA team members in their assessments, the fuzzy super-efficiency SBM method is utilized to prioritize risks and identify critical failure modes. Finally, the effectiveness and applicability of the proposed approach are demonstrated through a case study, further comparative analysis, and agglomerative hierarchical cluster analysis. Consequently, the results of this study provide important references and recommendations for crowdfunding project backers to make rational decisions and optimize resource allocation.

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Funding

This work was supported by the National Natural Science Foundation of China (No. 72171170), the Fundamental Research Funds of the Central Universities (No. 22120210535), and the Shanghai Pujiang Program (Grant No. 20PJ1413700).

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Authors and Affiliations

  1. School of Economics and Management, Tongji University, Shanghai, 200092, China

    Mengshan Zhu & Wenyong Zhou

  2. School of Mechanical Engineering, Tongji University, Shanghai, 201804, China

    Chunyan Duan

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  1. Mengshan Zhu
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  2. Wenyong Zhou
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  3. Chunyan Duan
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Contributions

MZ prepared the methodology and wrote the original manuscript; WZ assisted with data curation, investigation, and analyses; CD was in charge of the whole trial, writing—reviewing, and revision. All authors read and approved the final manuscript.

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Correspondence to Chunyan Duan.

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Zhu, M., Zhou, W. & Duan, C. Integrating FMEA and fuzzy super-efficiency SBM for risk assessment of crowdfunding project investment. Soft Comput 28, 2563–2575 (2024). https://doi.org/10.1007/s00500-023-08534-w

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