Abstract
The charitable crowdfunding platforms, as a new model for donation, enable fund seekers to solicit funds from the public over the Internet. Despite of the rapid development of crowdfunding platforms, knowledge about charitable crowdfunding remains obscure. Few studies have investigated the determinants of charitable crowdfunding projects’ success. In this paper, we adopt data mining techniques to collect data from ZhongChou platform, an important crowdfunding website in China. The theoretical foundation of our research model is social capital theory. Our question is what factors can affect the success of charitable crowdfunding projects. The findings show that the more structural social capital the fundraisers have, the high success rate the project will achieve. Besides, frequent updates on project progress can attract more supporters and more donation. More comments and more followers can attract more supporters, but have no significant impact on attracting more donation.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Zvilichovsky, D., Inbar, Y., Barzilay, O.: Playing both sides of the market: success and reciprocity on crowdfunding platforms (2015)
Kleemann, F., VoĂź, G.G., Rieder, K.: Un (der) paid innovators: the commercial utilization of consumer work through crowdsourcing. Sci. Technol. Innov. Stud. 4(1), 5 (2008)
Giudici, G., Nava, R., Rossi Lamastra, C., Verecondo, C.: Crowdfunding: the new frontier for financing entrepreneurship? (2012)
Belleflamme, P., Lambert, T., Schwienbacher, A.: Individual crowdfunding practices. Venture Cap. 15(4), 313–333 (2013)
Choy, K., Schlagwein, D.: Crowdsourcing for a better world: on the relation between IT affordances and donor motivations in charitable crowdfunding. Inf. Technol. People 29(1), 221–247 (2016)
Information. http://www.zhongchoujia.com/data/30373.html
Guiso, L., Sapienza, P., Zingales, L.: The role of social capital in financial development. Am. Econ. Rev. 94(3), 526–556 (2004)
Zheng, H., Li, D., Wu, J., Xu, Y.: The role of multidimensional social capital in crowdfunding: a comparative study in China and US. Inf. Manag. 51(4), 488–496 (2014)
Kuppuswamy, V., Bayus, B.L.: Crowdfunding creative ideas: the dynamics of project backers. In: Cumming, D., Hornuf, L. (eds.) The Economics of Crowdfunding, pp. 151–182. Springer, Cham (2018). https://doi.org/10.1007/978-3-319-66119-3_8
Mollick, E.: The dynamics of crowdfunding: an exploratory study. J. Bus. Ventur. 29(1), 1–16 (2014)
Giudici, G., Guerini, M., Rossi Lamastra, C.: Why crowdfunding projects can succeed: the role of proponents’ individual and territorial social capital (2013)
Smith, S., Windmeijer, F., Wright, E.: Peer effects in charitable giving: evidence from the (running) field. Econ. J. 125(585), 1053–1071 (2015)
Koning, R., Model, J.: Experimental study of crowdfunding cascades: when nothing is better than something (2013)
Choy, K., Schlagwein, D.: IT affordances and donor motivations in charitable crowdfunding: the “earthship kapita” case. In: ECIS (2015)
Coleman, J.S.: Social capital in the creation of human capital. Am. J. Sociol. 94, S95–S120 (1988)
Agrawal, A.K., Catalini, C., Goldfarb, A.: The geography of crowdfunding. National Bureau of Economic Research, No. w16820 (2011)
Nahapiet, J., Ghoshal, S.: Social capital, intellectual capital, and the organizational advantage. In: Knowledge and Social Capital, pp. 119–157 (2000)
Burt, R.S.: Structural Holes: The Social Structure of Competition. Harvard University Press, Cambridge (2009)
Everett, C.R.: Group membership, relationship banking and loan default risk: the case of online social lending. Bank. Finance Rev. 7(2) (2015)
Beier, M., Wagner, K.: Crowdfunding success: a perspective from social media and e-commerce (2015)
Koch, J.-A., Siering, M.: Crowdfunding success factors: the characteristics of successfully funded projects on crowdfunding platforms (2015)
De Choudhury, M., Sundaram, H., John, A., Seligmann, D.D.: Can blog communication dynamics be correlated with stock market activity? In: Proceedings of the Nineteenth ACM Conference on Hypertext and Hypermedia, pp. 55–60. ACM (2008)
Evers, M.W., Lourenço, C., Beije, P.: Main Drivers of Crowdfunding Success: A Conceptual Framework and Empirical Analysis. Erasmus Universiteit, Rotterdam (2012)
Ahlers, G.K.C., Cumming, D., Günther, C., Schweizer, D.: Signaling in equity crowdfunding. Entrepreneurship Theory Pract. 39(4), 955–980 (2015)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Wang, X., Wang, L. (2019). What Makes Charitable Crowdfunding Projects Successful: A Research Based on Data Mining and Social Capital Theory. In: Park, J., Shen, H., Sung, Y., Tian, H. (eds) Parallel and Distributed Computing, Applications and Technologies. PDCAT 2018. Communications in Computer and Information Science, vol 931. Springer, Singapore. https://doi.org/10.1007/978-981-13-5907-1_26
Download citation
DOI: https://doi.org/10.1007/978-981-13-5907-1_26
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-13-5906-4
Online ISBN: 978-981-13-5907-1
eBook Packages: Computer ScienceComputer Science (R0)