Communication of post-release plans in crowdfunding development initiatives: A signaling perspective. (April 2023)

• Record Type: Journal Article
• Authors: Ghobadi, Shahla
• Is Part Of: International journal of information management. Volume 69(2023)
• Publication Date: 2023-04
• Subjects: Crowdfunding -- Software -- Post-release -- Digital -- Communication -- Information sharing -- Entrepreneurship -- Case study -- Grounded theory -- sustainable development -- Crowd; Social sciences -- Information services -- Periodicals; Social sciences -- Research -- Periodicals; Information science -- Periodicals; Management information systems -- Periodicals; Knowledge management -- Periodicals; Sciences sociales -- Documentation, Services de -- Périodiques; Sciences sociales -- Recherche -- Périodiques; Sciences de l'information -- Périodiques; Systèmes d'information de gestion -- Périodiques; Information science; Management information systems; Social sciences -- Information services; Social sciences -- Research; Periodicals; Electronic journals; 025.52068
• DOI: 10.1016/j.ijinfomgt.2022.102592
• Languages: English
• ISSNs: 0268-4012

Abstract

Abstract: Significant research explores how developers leverage crowdfunding to attract finance for releasing digital goods. However, researchers seldom study "post-release activities" that are crucial for maintaining and advancing those goods. This article elaborates on the challenging nature of post-release activities for crowdfunding initiatives, asking how developers communicate their post-release plans to effectively prepare backers for possible changes. Using a grounded approach that connects the longitudinal history of fundraising to development to post-release, I examine initiatives that achieved impressive fundraising and development results yet varied significantly in their post-release outcomes. While they consistently signaled post-release plans, the differences are the signals' costs, backers' reactions, and the post-release activities and outcomes. I present theoretical propositions that (1) developers benefit in the long run by combining high-cost signaling with engaging backers in follow-up conversations about post-release issues and (2) prospective backers can utilize developers' communication to identify their post-release signals. Unlike dominant research findings about signals' impacts on mobilizing resources during fundraising, the findings emphasize signals' post-release consequences for stakeholders. While different signaling approaches can enhance short-term performance, they also seed contrasting longer-term outcomes for developers, backers, and the industry. These findings advance knowledge on effective strategies for engaging society to build sustainable digital goods. Highlights: Crowdfunding development initiatives rely on post-release activities. This study examines polar cases that pursued different post-release paths. I ask how developers can communicate post-release plans. Communicating post-release plans helps achieve positive outcomes. High-cost signals are beneficial if they lead to effective conversations with backers. Communicating post-release plans enhances trust in the crowdfunding industry.