Advertisement

Factors Affecting the Performance of Tourism Crowdfunding Projects: An Empirical Study

  • Huiying LiEmail author
  • Zhisheng Wang
  • Bin Fang
  • Yu-Shan Liu
Conference paper

Abstract

This study illustrates those determinants affecting the performance of crowdfunding in the tourism field through an empirical study. Drawing on a dataset of 1701 projects from an online global tourism crowdfunding website, this study identifies a series of factors that influence fundraising performance. This study indicates that the information quality and charity orientation of the projects are associated with the performance of tourism crowdfunding, and that social networks established by backers or pledgers are related to the success of tourism crowdfunding projects. In addition, we find that all-or-nothing projects with a smaller goal, a greater trip rating, and more backers will have a better fundraising performance. These results offer insights into the frontiers of tourism crowdfunding and shed light on the general ways for project creators to obtain more funds in their crowdfunding projects for travel.

Keywords

Tourism crowdfunding Social network Quality of information Charitable funding 

References

  1. Agrawal, A., Catalini, C., & Goldfarb, A. (2010). The geography of crowdfunding. NET Institute Working Paper No. 10-08. Available at SSRN: http://ssrn.com/abstract=1692661
  2. Balboni, B., Kocollari, U., & Pais, I. (2014). How can social enterprises develop successful crowdfunding campaigns? An empirical analysis on Italian context. Available at SSRN: http://ssrn.com/abstract=2430463
  3. Beier, M., & Wagner, K. (2014). Crowdfunding success of tourism projects – evidence from Switzerland. e-Review of tourism research (eRTR), Forthcoming. Available at SSRN: http://ssrn.com/abstract=2520925
  4. Belleflamme, P., & Lambert, T. (2014). Crowdfunding: Some empirical findings and microeconomic underpinnings. Available at SSRN: http://ssrn.com/abstract=2437786
  5. Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the right crowd. [Article]. Journal of Business Venturing, 29(5), 585–609.CrossRefGoogle Scholar
  6. Boeuf, B., Darveau, J., & Legoux, R. (2014). Financing creativity: Crowdfunding as a new approach for theatre projects [Article]. International Journal of Arts Management, 16(3), 33–48.Google Scholar
  7. Burns, C. (2013). Crowdfunding far from niche in 2015. Retrieved Jan. 16, 2015, from http://kae.com/ideabank/crowdfunding-far-from-niche-in-2015-2/
  8. Cardon, M., Sudek, R., & Mitteness, C. (2009). The impact of perceived entrepreneurial passion on angel investing. Frontiers of Entrepreneurship Research, 29(2), 1–15.Google Scholar
  9. Cumming, D. J., Leboeuf, G., & Schwienbacher, A. (2014). Crowdfunding models: Keep-it-all vs. all-or-nothing. Paris December 2014 Finance meeting EUROFIDAI – AFFI Paper. Available at SSRN: http://ssrn.com/abstract=2447567
  10. Duan, W., Gu, B., & Whinston, A. B. (2009). Informational cascades and software adoption on the internet: An empirical investigation. Mis Quarterly, 33(1), 23–48.Google Scholar
  11. Flanagin, A. J., & Metzger, M. J. (2013). Trusting expert- versus user-generated ratings online: The role of information volume, valence, and consumer characteristics. Computers in Human Behavior, 29(4), 1626–1634.CrossRefGoogle Scholar
  12. Galuszka, P., & Bystrov, V. (2014). Crowdfunding: A case study of a new model of financing music production. Journal of Internet Commerce, 13(3-4), 233–252.CrossRefGoogle Scholar
  13. Greene, W. H., & Zhang, C. (2003). Econometric analysis. Upper Saddle River, NJ: Prentice Hall.Google Scholar
  14. Howe, J. (2008). Crowdsourcing. Why the power of the crowd is driving future of business. New York: Three Rivers Press.Google Scholar
  15. Hu, N., Bose, I., Koh, N. S., & Liu, L. (2012). Manipulation of online reviews: An analysis of ratings, readability, and sentiments. Decision Support Systems, 52(3), 674–684.CrossRefGoogle Scholar
  16. Hu, N., Koh, N. S., & Reddy, S. K. (2014). Ratings lead you to the product, reviews help you clinch it? The mediating role of online review sentiments on product sales. Decision Support Systems, 57, 42–53.CrossRefGoogle Scholar
  17. Ibrahim, N., & Verliyantina. (2012). The model of crowdfunding to support small and micro businesses in Indonesia through a web-based platform. [Proceedings Paper]. International conference on small and medium enterprises development with a theme ‘innovation and sustainability in SME development’ (Icsmed 2012), 4, 390–397.Google Scholar
  18. Inbar, Y., & Barzilay, O. (2014). Community impact on crowdfunding performance. Available at SSRN: http://ssrn.com/abstract=2524910
  19. Joenssen, D. W., Michaelis, A., & Müllerleile, T. (2014). A link to new product preannouncement: Success factors in crowdfunding. Available at SSRN: http://ssrn.com/abstract=2476841
  20. Kleemann, F., Voβ, G. G., & Rieder, K. (2008). Under paid innovators: The commercial utilization of consumer work through crowdsourcing. Science, Technology and Innovation Studies, 4(1), 5–26.Google Scholar
  21. Koning, R., & Model, J. (2013). Social influence mechanisms in crowdfunding cascades: When nothing is better than something. Available at SSRN: http://ssrn.com/abstract=2308161
  22. Kremer, S., & Nautz, D. (2013). Short-term herding of institutional traders: New evidence from the German stock market. European Financial Management, 19(4), 730–746.CrossRefGoogle Scholar
  23. Kuppuswamy, V., & Bayus, B. L. (2014). Crowdfunding creative ideas: The dynamics of project backers in Kickstarter. UNC Kenan-Flagler Research Paper No. 2013-15. Available at SSRN: http://ssrn.com/abstract=2234765
  24. Lehner, O. M. (2014). The formation and interplay of social capital in crowdfunded social ventures [Article]. Entrepreneurship and Regional Development, 26(5–6), 478–499.CrossRefGoogle Scholar
  25. Li, Z., & Duan, J. A. (2014). Dynamic strategies for successful online crowdfunding. NET Institute Working Paper No. 14-09. Available at SSRN: http://ssrn.com/abstract=2506352
  26. Lu, Q., Xiao, L., & Ye, Q. (2012). Investigating the impact of online word-of-mouth on hotel sales with panel data. In L. Hua (Ed.), 2012 International conference on management science and engineering (pp. 3–9).Google Scholar
  27. Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study [Article]. Journal of Business Venturing, 29(1), 1–16.CrossRefGoogle Scholar
  28. Noyes, K. (2014). Why investors are pouring millions into crowdfunding. Retrieved Jan. 16, 2015, from http://fortune.com/2014/04/17/why-investors-are-pouring-millions-into-crowdfunding/
  29. Parker, S. C. (2014). Crowdfunding, cascades and informed investors. IZA Discussion Paper No. 7994. Available at SSRN: http://ssrn.com/abstract=2403130
  30. Pierdzioch, C., & Rulke, J. C. (2012). Forecasting stock prices: Do forecasters herd? Economics Letters, 116(3), 326–329.CrossRefGoogle Scholar
  31. Qiu, C. (2013). Issues in crowdfunding: Theoretical and empirical investigation on kickstarter. Available at SSRN: http://ssrn.com/abstract=2345872
  32. Riedl, C., Blohm, I., Leimeister, J. M., & Krcmar, H. (2013). The effect of rating scales on decision quality and user attitudes in online innovation communities. International Journal of Electronic Commerce, 17(3), 7–36.CrossRefGoogle Scholar
  33. Trevolta. (2014). What is this all about, again? Retrieved October 20, 2014, from http://www.trevolta.com/faq
  34. Veall, M. R., & Zimmermann, K. F. (1996). Pseudo-R2 measures for some common limited dependent variable models. Journal of Economic Surveys, 10(3), 241–259.CrossRefGoogle Scholar
  35. Ye, Q., Cheng, Z., & Fang, B. (2013). Learning from other buyers: The effect of purchase history records in online marketplaces. Decision Support Systems, 56, 502–512.CrossRefGoogle Scholar
  36. Yum, H., Lee, B., & Chae, M. (2012). From the wisdom of crowds to my own judgment in microfinance through online peer-to-peer lending platforms. Electronic Commerce Research and Applications, 11(5), 469–483.CrossRefGoogle Scholar
  37. Zheng, H. C., Li, D. H., Wu, J., & Xu, Y. (2014). The role of multidimensional social capital in crowdfunding: A comparative study in China and US [Article]. Information and Management, 51(4), 488–496.CrossRefGoogle Scholar
  38. Zvilichovsky, D., Inbar, Y., & Barzilay, O. (2014). Playing both sides of the market: Success and reciprocity on crowdfunding platforms. Available at SSRN: http://ssrn.com/abstract=2304101

Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  • Huiying Li
    • 1
    Email author
  • Zhisheng Wang
    • 2
  • Bin Fang
    • 3
  • Yu-Shan Liu
    • 1
  1. 1.School of ManagementXiamen UniversityXiamenChina
  2. 2.College of Business AdministrationHuaqiao UniversityXiamenChina
  3. 3.School of ManagementHarbin Institute of TechnologyHarbinChina

Personalised recommendations