Abstract
The paper at hand deals with crowdfunding as a web 2.0 technology that has recently penetrated traditional finance. Crowdfunding promises to improve access to finance to larger numbers of citizens and businesses, by bringing together demand and supply of available funds on a digital platform outside the well-established regulated banking system. Crowdfunding depends on technology-related factors, but also on the regulatory framework in terms of traditional financial activity and crowdfunding legislation progress. Country-specific credit and financing conditions on the regulated financial market may explain the search for alternative financing methods. These factors are analyzed for four Central and Eastern European (CEE) countries, Bulgaria, Hungary, Poland and Romania. We also analyze the influence of increased well-being on crowdfunding development in the selected countries in order to explain that the former is a determinant of crowdfunding development even in the absence of specific crowdfunding regulations. Crowdfunding covers financing needs for personal and business projects, but also for civic projects in the context of smart city development. Therefore, it is an instrument to be considered by city managers, as well.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Alderete, M. V. (2017). The age of prosumerism: Some micro-economic analysis. Journal of Theoretical and Applied Electronic Commerce Research, 12(3), 1–12. https://doi.org/10.4067/S0718-18762017000300002
Borst, I., Moser, C., & Ferguson, J. (2018). From friendfunding to crowdfunding: Relevance of Relationships, social media, and platform activities to crowdfunding performance. New Media & Society, 20(4), 1396–1414. https://doi.org/10.1177/1461444817694599
Brent, D. A., & Lorah, K. (2019). The economic geography of civic crowdfunding. Cities, 90, 122–130. https://doi.org/10.1016/j.cities.2019.01.036
Burtch, G., Ghose, A., & Wattal, S. (2015). The hidden cost of accommodating crowdfunder privacy preferences: A randomized field experiment. Management Science, 61(5), 949–962. https://doi.org/10.1287/mnsc.2014.2069
Burtch, G., Ghose, A., & Wattal, S. (2016). Secret admirers: An empirical examination of information hiding and contribution dynamics in online crowdfunding. Information Systems Research, 27(3), 478–496. https://doi.org/10.1287/isre.2016.0642
Busse, V. (2018). Crowdfunding—An empirical study on the entrepreneurial viewpoint. In F. Xhafa, L. Barolli, & M. Gregus (Eds.), Advances in Intelligent Networking and Collaborative Systems: The 10th International Conference on Intelligent Networking and Collaborative Systems (INCoS-2018) (pp. 306–318). Bratislava.
Care, S., Trotta, A., Care, R., & Rizzello, A. (2018). Crowdfunding for the development of smart cities. Business Horizons, 61(4), 501–509. https://doi.org/10.1016/j.bushor.2017.12.001
Cicchiello, A. F., Battaglia, F., & Monferra, S. (2019). Crowdfunding tax incentives in Europe: A comparative analysis. European Journal of Finance. https://doi.org/10.1080/1351847X.2019.1610783
Dai, H., Yin, J. L., Wang, K., Tsai, S. B., Zhou, B. W., & Lin, W. P. (2018). Trust building in dynamic process of internet entrepreneurial social network. IEEE Access, 6, 79138–79150. https://doi.org/10.1109/ACCESS.2018.2883755
Davies, W. E., & Giovannetti, E. (2018). Signalling experience & reciprocity to temper asymmetric information in crowdfunding evidence from 10,000 projects. Technological Forecasting and Social Change, 133, 118–131. https://doi.org/10.1016/j.techfore.2018.03.011
Eiteneyer, N., Bendig, D., & Brettel, M. (2019). Social capital and the digital crowd: Involving backers to promote new product innovativeness. Research Policy, 48(8). https://doi.org/10.1016/j.respol.2019.01.017
European Commission. (2016). Crowdfunding in the EU capital markets Union. Retrieved October 31, 2019, from https://ec.europa.eu/info/publications/crowdfunding-eu-capital-markets-union_en
European Commission. (2017). Identifying market and regulatory obstacles to cross-border development of crowdfunding in the EU. Retrieved October 31, 2019, from https://ec.europa.eu/info/publications/171216-crowdfunding-regulatory-obstacles-crossborder-development_en
European Commission. (2019a). The digital economy and society index (DESI). DESI 2019. Retrieved October 31, 2019, from https://ec.europa.eu/digital-single-market/en/desi
European Commission. (2019b). Digital single market. Digital scoreboard. Visualisations. Digital agenda scoreboard key indicators. Retrieved October 31, 2019, from https://digital-agenda-data.eu/datasets/digital_agenda_scoreboard_key_indicators/visualizations
European Commission. Crowdfunding. Retrieved October 31, 2019, from https://ec.europa.eu/info/business-economy-euro/growth-and-investment/financing-investment/crowdfunding_en
European Crowdfunding Network. (2017). Review of Crowdfunding Regulation 2017. Interpretations of existing regulation concerning crowdfunding in Europe, North America and Israel. Brussels, Belgium, 2017. Retrieved from European Crowdfunding Network website https://eurocrowd.org/wp-content/blogs.dir/sites/85/2017/10/ECN_Review_of_Crowdfunding_Regulation_2017.pdf
Eurostat. (2019a). Mean and median income by household type—EU-SILC and ECHP surveys. Retrieved October 31, 2019, from http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_di04
Eurostat. (2019b). Employment and activity by sex and age—Annual data. Retrieved October 31, 2019, from https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=lfsi_emp_a&lang=en
Eurostat. (2019c). At least upper secondary educational attainment, age group 25–64 by sex. Retrieved October 31, 2019, from https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tps00065&plugin=1
Fanea-Ivanovici, M. (2019). Crowdfunding—Metodă inovativă de finanţare pentru industriile creativ-culturale. Editura ASE.
Feller, J., Gleasure, R., & Treacy, S. (2017). Information sharing and user behavior in internet-enabled peer-to-peer lending systems: An empirical study. Journal of Information Technology, 32(2), 127–146. https://doi.org/10.1057/jit.2016.1
Gallemore, C., Nielsen, K. R., & Jespersen, K. (2019). The uneven geography of crowdfunding success: Spatial capital on Indiegogo. Environment and Planning A, 51(6), 1389–1406. https://doi.org/10.1177/0308518X1984392
Gleasure, R., & Morgan, L. (2018). The pastoral crowd: Exploring self-hosted crowdfunding using activity theory and social capital. Information Systems Journal, 28(3), 489–515. https://doi.org/10.1111/isj.12143
Gleasure, R., O’Reilly, P., & Cahalane, M. (2017). Inclusive technologies, selective traditions: A socio-material case study of crowdfunded book publishing. Journal of Information Technology, 32(4), 326–343. https://doi.org/10.1057/s41265-017-0041-y
Gleasure, R., Conboy, K., & Morgan, L. (2019). Talking up a storm: How backers use public discourse to exert control in crowdfunded systems development projects. Information Systems Research, 30(2), 447–465. https://doi.org/10.1287/isre.2019.0840
Hong, Y. L., Hu, Y. H., & Burtch, G. (2018). Embeddedness, prosociality, and social influence: Evidence from online crowdfunding. MIS Quarterly, 42(4), 1211–+. https://doi.org/10.25300/MISQ/2018/14105
Hornuf, L., & Schwienbache, A. (2017). Should securities regulation promote equity crowdfunding. Small Business Economics, 49(3), 579–593. https://doi.org/10.1007/s11187-017-9839-9
International Monetary Fund. (2019a). IMF policy paper. FinTech: The experience so far. Retrieved October 31, 2019, from https://www.imf.org/en/Publications/Policy-Papers/Issues/2019/06/27/Fintech-The-Experience-So-Far-47056
International Monetary Fund. (2019b). Interest rates selected indicators. Financial, interest rates, monetary policy-related interest rate, percent per annum. Retrieved October 31, 2019, from http://data.imf.org/regular.aspx?key=61545867
International Monetary Fund. (2019c). Financial development. Financial institutions efficiency index. Financial markets efficiency index. Retrieved October 31, 2019, from https://data.imf.org/?sk=F8032E80-B36C-43B1-AC26-493C5B1CD33B&sId=1481126573525
Jenik, I., Lyman, T., & Nava, A. (2017). Crowdfunding and financial inclusion. Retrieved from https://www.cgap.org/sites/default/files/Working-Paper-Crowdfunding-and-Financial-Inclusion-Mar-2017.pdf
Kang, L. L., Jiang, Q. Q., & Tan, C. H. (2017). Remarkable advocates: An investigation of geographic distance and social capital for crowdfunding. Information & Management, 54(3), 336–348. https://doi.org/10.1016/j.im.2016.09.001
Kindler, A., Golosovski, M., & Solomon, S. (2019). Early prediction of the outcome of kickstarter campaigns: Is the success due to virality. Palgrave Communications, 5. https://doi.org/10.1057/s41599-019-0261-6
Kromidha, E., & Robson, P. (2016). Social identity and signalling success factors in online crowdfunding. Entrepreneurship and Regional Development, 28(9–10), 605–629. https://doi.org/10.1080/08985626.2016.1198425
Lagazio, C., & Querci, F. (2018). Exploring the multi-sided nature of crowdfunding campaign success. Journal of Business Research, 90, 318–324. https://doi.org/10.1016/j.jbusres.2018.05.031
Laurell, C., Sandstorm, C., & Suseno, Y. (2019). Assessing the interplay between crowdfunding and sustainability in social media. Technological Forecasting and Social Change, 141, 117–127. https://doi.org/10.1016/j.techfore.2018.07.015
Liu, L. L., Suh, A., & Wagner, C. (2019). Empathy or perceived credibility? An empirical study on individual donation behaviour in charitable crowdfunding. Internet Research, 28(3), 623–651. https://doi.org/10.1108/IntR-06-2017-0240
Lytras, M. D., & Visvizi, A. (2019). Big data and their social impact: Preliminary study. Sustainability, 11(18), 1–18. https://doi.org/10.3390/su11185067
Lytras, M., & Visvizi, A. (2020). Information management as a dual-purpose process in the smart city: Collecting, managing and utilizing information. International Journal of Information Management, 102224. https://doi.org/10.1016/j.ijinfomgt.2020.102224
Lytras, M., Visvizi, A., Chopdar, P., Sarirete, A., & Alhalabi, W. (2020). Information management in smart cities: Turning end users’ views into multi-item scale development, validation, and policy-making recommendations. International Journal of Information Management, 102146. https://doi.org/10.1016/j.ijinfomgt.2020.102146
Madrazo-Lamarroy, P., Barajas-Portas, K., & Tovar, M. E. L. (2019). Analyzing campaign’s outcome in reward-based crowdfunding. Social capital as a determinant factor. Internet Research, 29(5), 1171–1189. https://doi.org/10.1108/INTR-03-2018-0115
Mendoza-Tello, J. C., Mora, H., Pujol-López, F. A., & Lytras, M. D. (2018). Social commerce as a driver to enhance trust and intention to use cryptocurrencies for electronic payments. IEEE Access, 6, 50737–50751. https://doi.org/10.1109/ACCESS.2018.2869359
Mendoza-Tello, J. C., Mora, H., Pujol-López, F. A., & Lytras, M. D. (2019). Disruptive innovation of cryptocurrencies in consumer acceptance and trust. Information Systems and E-Business Management, 17(2–4), 195–222. https://doi.org/10.1007/s10257-019-00415-w
Morschheuser, B., Hamari, J., & Maedche, A. (2019). Cooperation or competition–when do people contribute more? A field experiment on gamification of crowdsourcing. International Journal of Human-Computer Studies, 127(SI), 7–24. https://doi.org/10.1016/j.ijhcs.2018.10.001
Narodowy Bank Polski. (2019). Statistics. Monetary and financial statistics. Interest rate statistics. Retrieved October 31, 2019, from https://www.nbp.pl/homen.aspx?f=/en/statystyka/oproc/oproc.html
Omarova, S. T. (2019). New tech v. new deal: Fintech as a systemic phenomenon. Yale Journal on Regulation, 36(2), 735–793. https://www.yalejreg.com/print/page/2/
Organisation for Economic Co-operation and Development. (2019a). The economy of well-being. Creating opportunities for people’s well-being and economic growth. Retrieved October 31, 2019, from https://www.oecd-ilibrary.org/docserver/498e9bc7-en.pdf?expires=1576750178&id=id&accname=guest&checksum=B0193C71D48ECC56E39825E138AECD52
Organisation for Economic Co-operation and Development. (2019b). Better life index. Retrieved October 31, 2019, from https://stats.oecd.org/Index.aspx?DataSetCode=BLI
Ozden, U., Adil Sepici, A., & Karadağ, B. (2019). Increasing the use of digital banking applications for the baby boomer generation by easy interface. In O. Findik, E. Sonuc, & Y. Y. Baydilli (Eds.), Proceeding Book of the International Conference on Advanced Technologies, Computer Engineering and Science (ICATCES 2019) (pp. 219–222). Alanya.
Paredes, H., Barrosso, J., & Bigham, J. P. (2018). All (of us) can help: Inclusive crowdfunding research trends and future challenges. In W. Shen, J. Luo, J. P. Barthès, F. Dong, J. Zhang, & H. Zhu (Eds.), Proceedings of the IEEE 22nd International Conference on CSCWD. Nanjing, China. https://ieeexplore.ieee.org/xpl/conhome/8455506/proceeding
Planells, A. J. (2017). Video games and the crowdfunding ideology: From the gamer-buyer to the prosumer-investor. Journal of Consumer Culture, 17(3), 620–638. https://doi.org/10.1177/1469540515611200
Ritzer, G. (2015). The ‘new’ world of prosumption: Evolution, ‘return of the same’, or revolution. Sociological Forum, 30(1), 1–17. https://doi.org/10.1111/socf.12142
Ritzer, G., & Jurgenson, N. (2010). Production, consumption, prosumption. The nature of capitalism in the age of the digital ‘prosumer’. Journal of Consumer Culture, 10(1), 13–36. https://doi.org/10.1177/1469540509354673
Saxton, G. D., & Wang, L. L. (2014). The social network effect: The determinants of giving through social media. Nonprofit and Voluntary Sector Quarterly, 43(5), 850–868. https://doi.org/10.1177/0899764013485159
Siuda, P., & Troszynski, M. (2017). Natives and tourists of prosumer capitalism: On the varied pro-prosumer activities of producers exemplified in the polish pop culture industry. International Journal of Cultural Studies, 20(5), 545–563. https://doi.org/10.1177/1367877916666117
Soon, J. M., & Saguy, I. S. (2017). Crowdsourcing: A new conceptual view for food safety and quality. Trends in Food Science & Technology, 66, 63–72. https://doi.org/10.1016/j.tifs.2017.05.013
Stemler, A. R. (2013). The JOBS act and crowdfunding: Harnessing the power- and money-of the masses. Business Horizons, 56(3), 271–275. https://doi.org/10.1016/j.bushor.2013.01.007
Torres-Ruiz, M. J., & Lytras, M. D. (2019). Urban computing and smart cities applications for the knowledge society. International Journal of Knowledge Society Research, 7(1), 113–119. https://doi.org/10.4018/IJKSR.2016010108
Vealey, K. P., & Gerding, J. M. (2016). Rhetorical work in crowd-based entrepreneurship: Lessons learned from teaching crowdfunding as an emerging site of professional and technical communication. IEEE Transactions on Professional Communication, 59(4), 407–427. https://doi.org/10.1109/TPC.2016.2614742
de la Vina, L. Y., & Black, S. L. (2018). US equity crowdfunding: A review of current legislation and a conceptual model of the implications for equity funding. Journal of Entrepreneurship, 27(1), 83–110. https://doi.org/10.1177/0971355717738600
Vismara, S. (2016). Equity retention and social network theory in equity crowdfunding. Small Business Economics, 46(4), 579–590. https://doi.org/10.1007/s11187-016-9710-4
Vismara, S. (2018). Information cascades among investors in equity crowdfunding. Entrepreneurship Theory and Practice, 42(3), 467–497. https://doi.org/10.1111/etap.12261
Visvizi, A., Mazzucelli, C. G., & Lytras, M. (2017). Irregular migratory flows: Towards an ICTs’ enabled integrated framework for resilient urban systems. Journal of Science and Technology Policy Management, 8(2), 227–242. https://doi.org/10.1108/JSTPM-05-2017-0020
Visvizi, A., Lytras, M. D., Damiani, E., & Mathkour, H. (2018). Policy making for smart cities: Innovation and social inclusive economic growth for sustainability. Journal of Science and Technology Policy Management, 9(2), 126–133. https://doi.org/10.1108/JSTPM-07-2018-079
Wang, Z. Y., Liu, Y. Q., Tsai, S. B., Fei, S. Q., Hsu, C. F., He, H. D., & Shi, Y. F. (2019). A research on effect of response to internet financing reputation evaluation on achievement—From the perspective of social network theory. IEEE Access, 7, 39352–39361. https://doi.org/10.1109/ACCESS.2019.2903681
Wessel, M., Thies, F., & Benlian, A. (2017). Opening the floodgates: The implications of increasing platform openness in crowdfunding. Journal of Information Technology, 32(4), 344–360. https://doi.org/10.1057/s41265-017-0040-z
World Urban Campaign. Retrieved October 31, 2019, from https://www.worldurbancampaign.org/civic-crowdfunding-collective-option-urban-sustainable-development
Yang, D., Chen, P., Shi, F. Y., & Wen, G. C. (2018). Internet finance: Its uncertain legal foundations and the role of big data in its development. Emerging Markets Finance and Trade, 54(4), 721–732. https://doi.org/10.1080/1540496X.2016.1278528
Yang, Y., Wang, H. J., & Wang, G. (2016). Understanding crowdfunding processes: A dynamic evaluation and simulation approach. Journal of Electronic Commerce Research, 17(1), 47–64. http://www.jecr.org/node/486
Zenone, M., & Snyder, J. (2019). Fraud in medical crowdfunding: A typology of publicized cases and policy recommendations. Policy and Internet, 11(2), 215–234. https://doi.org/10.1002/poi3.188
Zetzsche, D., & Preiner, C. (2018). Cross-border crowdfunding: Towards a single crowdlending and crowdinvesting markets for Europe. European Business Organization Law Review, 19(2), 217–251. https://doi.org/10.1007/s40804-018-0110-x
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Fanea-Ivanovici, M., Pană, MC. (2022). Crowdfunding as a Smart Finance and Management Tool: Institutional Determinants and Well-Being Considerations. Evidence from Four Central and Eastern European Countries. In: Visvizi, A., Troisi, O. (eds) Managing Smart Cities. Springer, Cham. https://doi.org/10.1007/978-3-030-93585-6_7
Download citation
DOI: https://doi.org/10.1007/978-3-030-93585-6_7
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-93584-9
Online ISBN: 978-3-030-93585-6
eBook Packages: Physics and AstronomyPhysics and Astronomy (R0)