Laffey, Desmond, Durkin, Mark, Cummins, Darryl, Gandy, Anthony (2021) A shift in power? Value co-creation through successful crowdfunding. Technological Forecasting and Social Change, 172 . Article Number 121035. ISSN 0040-1625. (doi:10.1016/j.techfore.2021.121035) (Access to this publication is currently restricted. You may be able to access a copy if URLs are provided) (KAR id:89820)
PDF
Author's Accepted Manuscript
Language: English Restricted to Repository staff only until 2 August 2023.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
|
|
Contact us about this Publication
|
![]() |
XML Word Processing Document (DOCX) (Final accepted paper)
Author's Accepted Manuscript
Language: English Restricted to Repository staff only until 2 August 2023.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
|
|
Contact us about this Publication
|
![]() |
Official URL https://doi.org/10.1016/j.techfore.2021.121035 |
Abstract
Crowdfunding has emerged as an alternative to traditional sources of finance such as bank loans and angel funding. In the post COVID-19 era where finance will be likely to become more difficult for small firms to access, crowdfunding has the potential to be an even more important part of entrepreneurial funding, and enable firms previously denied opportunities the chance to grow. This makes understanding crowdfunding important from a social as well as financial perspective.
The paper explores how crowdfunding enables value co-creation. It does so by analysing interview data with start-ups who raised money through crowdfunding and then compares these findings with the views of traditional funders.
The findings from the study highlight the speed of raising finance and the avoidance of financial monitoring controls as key sources of value co-creation, along with the increased negotiating power with traditional funders and retail partners that comes from achieving validation, i.e., providing evidence that there is demand for the start-up's products. The validation enables the entrepreneur to increase value capture from their interactions with further funders and business partners. The temporal dimension is crucial as a successful crowdfund can shift power towards the crowdfunded firm and away from other participants.
Item Type: | Article |
---|---|
DOI/Identification number: | 10.1016/j.techfore.2021.121035 |
Uncontrolled keywords: | Crowdfunding; value co-creation; value capture; negotiating power |
Subjects: |
H Social Sciences > HF Commerce > HF5351 Business H Social Sciences > HF Commerce > HF5415 Marketing H Social Sciences > HF Commerce > HF5548.32 E-commerce |
Divisions: | Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business |
Signature Themes: | Future Human |
Depositing User: | Desmond Laffey |
Date Deposited: | 17 Aug 2021 11:17 UTC |
Last Modified: | 02 Dec 2021 09:59 UTC |
Resource URI: | https://kar.kent.ac.uk/id/eprint/89820 (The current URI for this page, for reference purposes) |
Laffey, Desmond: | ![]() |
Durkin, Mark: | ![]() |
- Export to:
- RefWorks
- EPrints3 XML
- BibTeX
- CSV
- Depositors only (login required):