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Herding behavior in supplier innovation crowdfunding: Evidence from Kickstarter
Journal article   Peer reviewed

Herding behavior in supplier innovation crowdfunding: Evidence from Kickstarter

Xin Tian, Yan Song, Chunlin Luo, Xiaoyang Zhou and Benjamin Lev
International journal of production economics, v 239, p108184
01 Sep 2021

Abstract

Engineering Engineering, Industrial Engineering, Manufacturing Operations Research & Management Science Science & Technology Technology
Despite a growing body of research that has investigated the impacts of social effect on the amount pledged in crowdfunding, some questions remain unclear. How does herding behavior influence the performance in supplier innovation crowdfunding, and is such behavior rational? What are the primary mechanisms of herding behavior? Based on a panel data set from Kickstarter, we find that it is rational herding rather than information cascade that has a positive effect on the performance in supplier innovation crowdfunding, that is, later backers will combine their private information about projects with others' contributions to make decisions. Prior contribution acts as the quality signal and affects the later crowdfunding performance. The empirical studies also testify that information asymmetries, word of mouth effect, network effect, and rational behavior are the primary mechanisms of herding in supplier innovation crowdfunding.

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48 citations in Scopus

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#9 Industry, Innovation and Infrastructure
#1 No Poverty
#5 Gender Equality

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Engineering, Industrial
Engineering, Manufacturing
Operations Research & Management Science
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