Introduction to the special issue

Purpose – The purpose of this paper is to set the papers included in the special issue into their unique contextual stage of entrepreneurial eco-systems in Nordic and Baltic countries. Design/methodology/approach – The editorial first presents the current status of entrepreneurship in the Nordic and Baltic regions. It then provides an overview of the papers included in this special issue, while highlighting their contributions. Finally, it concludes with suggestions for further research, while pointing out promising areas for future investigations. Findings – The papers included in this special issue help advance the understanding of important aspects of entrepreneurship in general, and wi…

The Global Alternative Finance Market Benchmarking Report

For the first time, the Cambridge Centre for Alternative Finance has consolidated its annual regional reports to produce one global benchmarking report, with the intention of presenting world-wide online alternative finance data for 2018.This report presents the key findings from the CCAF annual global survey of online alternative finance. In all, 1,227 unique firms contributed to this study, providing 2,322 firm-level observations globally. Investigating in crowdfunding, P2P/marketplace lending or related capital raising activities, the study shows that 47 per cent of the firms were operating in two or more countries or jurisdictions. Highlights from the report In 2018, the global alternat…

Ethical Considerations in Crowdfunding

AbstractThe current chapter addresses ethical issues in crowdfunding practice from a multiple stakeholder perspective. It draws on ethical principles outlined in both classical and business-specific approaches. The discussion first presents classical approaches to ethical decision making. It then discusses whether crowdfunding presents an ethical solution or a source of ethical problems. Later, it suggests a framework presenting a classification of potential ethical dilemmas and pitfalls in crowdfunding practice, as well as potential means for addressing them. The discussion concludes with concrete implications for crowdfunding ethics research and practice.

Influences of culture, geography and infrastructure on website localization decisions

PurposeThe purpose of this paper is to examine the role played by culture, geography and infrastructure on European airline's decision to launch market‐specific websites.Design/methodology/approachLogistic regression analysis based on 440 observations of home‐target country dyads collected from websites of nine European airlines, and supplemented by additional sources of macro level indicators. The unit of analysis is the country dyad.FindingsCultural distance between home and target country, geographical distance between home and target country, website traffic volumes originating from target country, demand conditions in target country, and competition intensity in target country all infl…

Expanding Horizons: The 3rd European Alternative Finance Industry Report

The 3rd Annual European Alternative Finance Report presents the most comprehensive analysis of the status of alternative finance industry in Europe, covering more countries, alternative finance models, as well as industry trends and developments than was available in its predecessors. Much effort has been placed on data quality verifications and clarifications in an ongoing productive and collaborative dialogue with all platform informants and research partners. Here, we wish to acknowledge their invaluable contributions, without which this report could not have been written. Overall, the data collected shows that 2016 saw European alternative finance doubling its volumes from 2015, and con…

On congruence between brand and human personalities

PurposeThe purpose of this research paper is to uncover the relations between brand and human personality by identifying brand preferences of consumers with different personality types.Design/methodology/approachBased on the existing literature, 15 propositions are suggested linking Ekelund's DI types as parsimonious proxies of human personality and brand personality dimensions as suggested by Aaker. Propositions were tested through statistical analysis of survey data collected in two stages.FindingsIt was found that consumers prefer brands with personalities that match their own. For example, consumers with Blue DI type exhibit clear aversion from the excitement dimension of brand personal…

Individualism, collectivism and reward crowdfunding contribution intention and behavior

Abstract The study examines the role of the individualism-collectivism (IDV) cultural dimension in reward crowdfunding contribution intentionality and behavior. An extended Theory of Planned Behavior framework is used for comparative analysis using survey data collected from users of national platforms from opposing cultures along the IDV dimension – China and Finland. Main findings suggest that: attitudes are positively associated with information sharing and financial contribution intentions in both cultures; collectivism enhances the effects of subjective norms on both intentions; behavior control is more strongly observed in individualistic cultures; and information sharing intentions a…

Expanding horizons : The 3rd European alternative finance industry report

This report presents the research findings from the 3rd Annual European Alternative Finance Industry Survey, which systematically records the development of this industry during 2016. This research was carried out by the Cambridge Center for Alternative Finance at the University of Cambridge Judge Business School, with the support of 29 major European industry associations and research partners, in partnership with BBVA.

Crowdfunding success: a systematic literature review 2010–2017

PurposeThe paper takes stock of accumulated knowledge on factors impacting the success of online crowdfunding (CF) campaigns while suggesting opportunities for future research development.Design/methodology/approachA Systematic Literature Review of 88 academic papers published between 2010 and 2017. Papers were collected from four academic databases and published in 65 different journals. The review addresses issues related to theory, methods, context, findings and gaps. Overall, the paper presents an analysis of 1,718 associations between 111 aggregated independent variables (from 927 variables) with six main aggregated success indicators.FindingsMost research involves quantitative analyse…

Growing pains and blessings: Manifestations and implications of equity crowdfunding industry maturation

The equity crowdfunding industry has grown significantly in the past decade. Industry life cycle theory suggests that growth dynamics and relations between stakeholders change as industries mature. The present study examines the characteristics and implications of maturation in the equity crowdfunding industry via the lens of industry life cycle theory. Specifically, we explore whether the industry is reverting to traditional entrepreneurial finance practice, or whether it retains its original distinguishing characteristics. Accordingly, we first assess changes with respect to users (investors) and products (campaigns and investment objects). Second, we assess the implications of these chan…

The Global Status of the Crowdfunding Industry

AbstractThe chapter presents key international trends relating to crowdfunding market development, and also provides insights into the current research available attempting to explain such developments. Facts and figures from leading national and regional markets are presented in a comparative manner, with specific focus on the diversity of crowdfunding models, growth trajectories, and geographical variations. The chapter shows that crowdfunding is no longer a fringe activity but gradually moving mainstream with substantial volumes recorded nationally, regionally, and globally. Furthermore, we illustrate the dominance of crowd-lending models across regions, as well as their sub-model variat…

Crowdfunding in the Cultural Industries

AbstractCultural production has stood at the forefront of crowdfunding adoption representing some of the first crowdfunding campaigns on record. This development emerged as part of comprehensive value chain reconfigurations in the cultural sector, which were triggered by the advent of digitalization on the one hand and the downsizing in public funds on the other. As a result, the emerging phenomenon here labelled as ‘cultural crowdfunding’ (CCF) has captured the imagination of researchers and practitioners. The study of CCF is of high relevance, as it presses creators to strike a balance between the commercial and the non-commercial, the economic and the cultural outcomes, as well as the au…

Crowdfunding in Europe: Between Fragmentation and Harmonization

AbstractThe European crowdfunding market is growing rapidly, especially in continental Europe. At the same time, cross-border activities are still constrained. Fragmented markets, especially caused by differences in regulation, are an obstacle to growth of crowdfunding platforms. The European Union introduced the European Crowdfunding Service Provider (ECSP) Regime in 2019. This harmonized regime applies to crowdfunding platforms intermediating equity and debt investments between businesses and retail investors. This chapter discusses evidence on the fragmented nature of the European crowdfunding market, while presenting the ECSP directive, as a critical regulatory initiative towards harmon…

Born Global Firms, Internet, and New Forms of Internationalization

Although Internet is widely acknowledged to facilitate the rapid internationalization of born global firms (BGs), it is less known how such firms actually go about it. The current chapter specifically explores Internet-enabled internationalization (IEI) in the context of BGs. Based on e-adoption, international marketing and internationalization literatures, a conceptualization of IEI modes is suggested along three key dilemmas, assumed to underlie IEI mode configurations, including - functionality, localization and service directness. Three cases of Internet-enabled internationalizing born global firms (IEI BGs) from small open economies are then presented, as part of an effort towards conc…

Crowdfunding in Africa: Opportunities and Challenges

AbstractThe chapter presents the current state of crowdfunding research and practice in Africa while outlining opportunities and challenges associated with them. Conditions of growing popularity of digital and mobile finance, low penetration of traditional financial institutions, and a long cultural heritage of communal mutual support may enhance crowdfunding uptake. On the other hand, conditions of unclear regulation, relatively low levels of internet access, and societies characterized by low social trust may all hinder crowdfunding uptake. Accordingly, African crowdfunding is at its infancy and involves transitory hybrid practices of early adoption, often involving reliance on foreign co…

The role of social trust in reward crowdfunding campaigns’ design and success

AbstractTrust is critical for successful participation in online marketplaces. In crowdfunding, fundraisers seek to win the trust of potential supporters towards contributing to their projects despite risks of non-delivery or deviations from campaign promises. This study explores how cultural differences in social trust proclivities influence reward crowdfunding campaign design and success. Specifically, we analyze data about 700 campaigns from a relatively high social trust society (HTS) – Finland, and 700 campaigns from a relatively low social trust society (LTS) – Poland. We find that sharing campaign information via social media is positively associated with campaign success in both con…

The interaction between culture and sex in the formation of entrepreneurial intentions

This study aims to reveal the effect of an interaction between culture and sex on the formation of entrepreneurial intentions, while building on notions of a cultural construction of gender. The study adopts the theory of planned behaviour as the setting for such exploration, as it has been proven to be robust across national contexts. The analysis is based on survey data collected from business students in Norway and Turkey. Both countries were selected as two distinct and opposite cultural constellations in accordance with the dissatisfaction approach to entrepreneurship. Turkey representing a relatively masculine, high power distance, uncertainty avoiding and collectivistic society; whil…

Lending Crowdfunding : Principles and Market Development

AbstractCrowdlending has emerged as the leading form of crowdfunding in terms of scope and scale. For lenders, it offers new investment opportunities, often offering better returns than some alternative investment channels, as well as opening to incorporate new small-scale investors that have not enjoyed such opportunities before. For borrowers, it offers new channels to access credit, often either offered at better terms or by including groups that have previously been marginalized and underserved by traditional credit service providers. In the current chapter we present the brief history of crowdlending, its diversity of models, the current state or the industry, as well as the underlying…

On relationship types, their strength, and reward crowdfunding backer behavior

ispartof: JOURNAL OF BUSINESS RESEARCH vol:154 status: published

Analyzing the Impact of Culture on Average Time Spent on Social Networking Sites

The study examines the influence of national culture on national averages of time spent (ATS) visiting the largest social networking sites (SNSs): Facebook, Twitter, and LinkedIn. The analysis uses cultural dimensions adopted from both the works of Hofstede and Schwartz, while controlling for country e-readiness and median population age. The findings suggest that culture's influence may be moderated by the media richness and type of network focus of each SNS. Overall, in rich-media SNSs, egalitarianism positively impacts ATS. Individualism and masculinity only impact ATS on friendship-oriented SNSs. Additionally, uncertainty avoidance and intellectual autonomy only impact ATS on profession…

Reward crowdfunding contribution as planned behaviour: An extended framework

Published by Elsevier Inc. This is an open access article under the CC BY license. Reward crowdfunding is a popular channel for entrepreneurial fundraising, whereby backers receive non-monetary benefits in return for monetary contributions while accepting risks of non-delivery on campaign pitch promises. To understand contribution behavior in this context, we apply the Theory of Planned Behavior (TPB) for analyzing contribution intentionality and behavior, as well as their antecedents. We use survey data from 560 users of Finland's leading reward crowdfunding platform– Mesenaatti. Our findings show that an extended TPB model holds for reward crowdfunding and that both financial-contribution…

Crowdfunding Education: Objectives, Content, Pedagogy, and Assessment

AbstractDespite its rapid growth, little attention has been given to education and training in crowdfunding. Such training is important for ensuring the healthy and ethical development of the crowdfunding industry by educating the public about the challenges and risks as well as the merits and benefits of crowdfunding. While many may have heard the term ‘crowdfunding’, it often remains poorly understood by the larger public. Hence, this chapter argues the need for crowdfunding dedicated education programmes, while presenting a concrete course programme based on the Crowdfunding Lab developed at the University of Agder in Norway. The Crowdfunding Lab is to our knowledge one of the first univ…

The 4th European Alternative Finance Benchmarking Report

This year’s report is titled ‘Shifting Paradigms’ to, in part, emphasise the continued growth and development of the European Alternative Finance Industry, but also underscore that these patterns of growth can develop and change as the sector continues to develop and mature. Throughout the region, platforms have continued to grow, respond to regulation, and expand operations internationally. In some regions, model prominence has shifted, allowing for others to grow. At times, this has been a response to the development or lack of regulation, or simply a result of competing market forces. Last year’s report, ‘Expanding Horizons’, sought to exemplify the positive developments in European Alte…

Introduction : From Fundamentals to Advances in Crowdfunding Research and Practice

AbstractThe chapter introduces the phenomenon of crowdfunding while presenting its definition and main manifestations in recent years. It then discusses the roles played by the various parties to a crowdfunding transaction, as well as the benefits each may gain from such engagement. Overall, it argues for a win-win situation, where all parties become better off from involvement in a responsible crowdfunding engagement. Furthermore, the chapter highlights the process dimension of crowdfunding, as represented through a series of three main stages, which are further specified into a seven sub-stage model. Each stage in the process depends on successful completion of the stage preceding it and …

A Trust-Based Crowdfunding Campaign Marketing Framework: Theoretical Underpinnings and Big-Data Analytics Practice

The Future of Crowdfunding Research and Practice

AbstractThis chapter critically reflects on current crowdfunding research and practice while highlighting eight dilemmas that are expected to shape the future of crowdfunding. Each dilemma is critically discussed and is followed by relevant suggestions for future research. These dilemmas include: (1) the balance between idealism and pragmatism; (2) the extent of cooperation between crowdfunding platforms and traditional financial institutions; (3) measurement of crowdfunding success and performance in financial and socio-economic terms; (4) the balance between quantity and quality in campaigns approved for publication by platforms; (5) domestic versus international growth of crowdfunding pl…

Skin in the game: Self-funding and reward crowdfunding success

Abstract This article focuses on entrepreneurs’ self-funding behavior in the reward crowdfunding context and its relation to crowdfunding success. Theoretically anchoring our discussion in signaling theory, we argue that self-funding sends similar information to that conveyed by quick-fix bootstrapping efforts. Accordingly, we hypothesize that self-funding behavior is positively associated with crowdfunding success as it can help alleviate uncertainties around a fundraiser’s intent and quality as perceived by prospective backers. To show this, we use a sample of 1,583 campaigns collected from Zhongchou, the largest Chinese reward-based crowdfunding platform, to test our hypotheses. Our resu…

The Differential Impact of Entrepreneurship Education on the Entrepreneurial Intentions of Segments of Students

Inconclusive prior research on the effects of entrepreneurship education may be an aggregation artefact because student subjects were assumed to be homogenous. Accordingly, we examine the impact of entrepreneurship education on student intention, entrepreneurial self-efficacy and attitude towards entrepreneurship among theoretically relevant sub-groups of Norwegian business students. We find that at aggregate level, self-efficacy increases while attitude towards entrepreneurship and intentions remain unchanged. However, on closer examination we find that entrepreneurial self-efficacy and attitude towards entrepreneurship increase for some subgroups of students, decrease for other subgroups…

sj-pdf-1-eex-10.1177_2515127420936240 - Supplemental material for The Differential Impact of Entrepreneurship Education on the Entrepreneurial Intentions of Segments of Students

Supplemental material, sj-pdf-1-eex-10.1177_2515127420936240 for The Differential Impact of Entrepreneurship Education on the Entrepreneurial Intentions of Segments of Students by Rotem Shneor, J. Brock Smith, Claudia G. Smith and Jann Fabian Michael Goedecke in Entrepreneurship Education and Pedagogy

Gender and entrepreneurial intentions

Author's version of a chapter in the book: L. Kelley (Ed.), Entrepreneurial women : new management and leadership models. The paper identifies commonalities and differences between women and men in terms of eleven key factors’ impact on the formation of entrepreneurial intentions (EIs) among Norwegian students. The analysis is based on a sample of 1,782 Norwegian students from a variety of faculties and degree programs. A path analysis methodological approach is used, while being based on multiple regressions so as to gradually refine model complexities. Findings show that common to both sexes are the effects of entrepreneurial experience, social norms, self-efficacy, and age. The direct ef…

Donation Crowdfunding : Principles and Donor Behaviour

AbstractDonation crowdfunding is a form of internet-enabled fundraising where backers provide funding based on philanthropic motivations without expectation of monetary or material rewards. Despite accounting for only a marginal share of global crowdfunding volumes, donation crowdfunding is a unique model for supporting a wide range of prosocial and charitable causes, while allowing fundraisers to leverage benefits afforded by ICT solutions for more effective and efficient fundraising. The chapter provides an overview of the limited research on donation crowdfunding while highlighting donor motivations and behaviour, as well as drivers of success in donation campaigns. We find that current …

Crowdfunding Models, Strategies, and Choices Between Them

AbstractThe growing popularity of crowdfunding is manifested through the proliferation of thousands of platforms globally. The current chapter presents an elaborate, up-to-date, and detailed typology of crowdfunding models currently in use, as well as their main characteristics. Furthermore, it suggests some of the first frameworks developed for guiding prospective fundraisers in choosing between models. Each of the frameworks is designed for a different type of fundraiser, including model choice heuristics for organizations and consumers. The chapter concludes with some suggestions for further research and implications for practice.