The Impact of Social Capital on Crowdfunding Performance

Abstract

This study aims to analyze the effects of social capitalmnamely structural,relational, and cognitive dimensionsmon crowdfunding performance usingKitabisa.com as a case study for 2013-2015. Using robust ordinary leastnsquares methods, we find two important results. Structural dimension, which isnmeasured by Facebook friends owned by an entrepreneur, affects crowdfundingsuccess. The cognitive dimension, which is measured by the number of wordsthat are written by entrepreneurs in the platform, also affects crowdfundingopportunities in order to wage a successful campaign. Using logistic regressiontechnique, this study finds the same result, namely that the structural dimensionand cognitive dimension have a positive relationship to the performance ofcrowdfunding. From a logistic regression, we can conclude that the number ofFacebook friends and the amount of words to describe the project significantlypositively influence the chances of success of the project; the more the number offriends and the number of words on a project, the greater chance of a project toachieve success. This study concludes Facebook friends owned by entrepreneurand number of words affect positively crowdfunding opportunities toward asuccessful campaign.