• Login
    View Item 
    •   Shocker Open Access Repository Home
    • Business
    • Management
    • MAN Research Publications
    • View Item
    •   Shocker Open Access Repository Home
    • Business
    • Management
    • MAN Research Publications
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Crowd reactions to entrepreneurial failure in rewards-based crowdfunding: A psychological contract theory perspective

    View/Open
    Open Access pdf (3.287Mb)
    Date
    2022-07-08
    Author
    Oberoi, Swati
    Srivastava, Smita
    Gupta, Vishal K.
    Joshi, Rohit
    Mehta, Atul
    Metadata
    Show full item record
    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.
    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/).
    URI
    https://doi.org/10.3390/jrfm15070300
    https://soar.wichita.edu/handle/10057/23613
    Collections
    • MAN Research Publications

    Browse

    All of Shocker Open Access RepositoryCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsBy TypeThis CollectionBy Issue DateAuthorsTitlesSubjectsBy Type

    My Account

    LoginRegister

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    DSpace software copyright © 2002-2022  DuraSpace
    DSpace Express is a service operated by 
    Atmire NV