Loading...
Crowd reactions to entrepreneurial failure in rewards-based crowdfunding: A psychological contract theory perspective
Oberoi, Swati Srivastava, Smita Gupta, Vishal K. Joshi, Rohit Mehta, Atul
Oberoi, Swati
Srivastava, Smita
Gupta, Vishal K.
Joshi, Rohit
Mehta, Atul
Citations
Altmetric:
Files
Loading...
Open Access pdf
Adobe PDF, 3.29 MB
Other Names
Location
Time Period
Advisors
Original Date
Digitization Date
Issue Date
2022-07-08
Type
Article
Genre
Keywords
Crowdfunding,Emotional valence,Entrepreneurial failure,Failure to deliver rewards,Kickstarter.com,Psychological contract theory,Rewards-based crowdfunding
Subjects (LCSH)
Citation
Oberoi S, Srivastava S, Gupta VK, Joshi R, Mehta A. Crowd Reactions to Entrepreneurial Failure in Rewards-Based Crowdfunding: A Psychological Contract Theory Perspective. Journal of Risk and Financial Management. 2022; 15(7):300. https://doi.org/10.3390/jrfm15070300
Abstract
Rewards-based crowdfunding (RBC) has recently gained popularity as an alternative means of finance to help entrepreneurs bring novel projects to life. We theorize that crowdfunding backers perceive an implicit psychological contract with campaign creators. When promised rewards fail to materialize post fundraising, backers may perceive entrepreneurs’ failure to deliver rewards as a violation of their psychological contract with him or her. Drawing on psychological contract theory and using Eisenhardt’s comparative case methodology, we generate insights about crowd reactions to creators’ failure to deliver rewards to backers. Our research generates the novel insight that in the event of delivery failure, backers who perceive a transactional psychological contract with creators are more likely to display negative emotional reactions, while backers who perceive a relational psychological contract are more likely to display positive emotional reactions. Furthermore, we identify three progressive stages of backers’ interaction with creators in failed RBC campaigns, ‘committing’, ‘crisis handling’, and ‘coping-up’ and highlight the crowds’ emotional valence associated with each stage. Our analyses of the campaign comments reveal insights of interest to RBC players and hold implications for the future development of crowdfunding.
Table of Contents
Description
This article is an open access article distributed under the terms and conditions of the Creative Commons
Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
Publisher
MDPI
Journal
Book Title
Series
Journal of Risk and Financial Management
Vol. 15, No. 7
Vol. 15, No. 7
Digital Collection
Finding Aid URL
Use and Reproduction
Archival Collection
PubMed ID
DOI
ISSN
1911-8074