Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307387 
Year of Publication: 
2022
Citation: 
[Journal:] Electronic Markets [ISSN:] 1422-8890 [Volume:] 32 [Issue:] 3 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2022 [Pages:] 1127-1144
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
Reward-based crowdfunding broadens the scope of e-commerce transactions, as prototypical products are pre-sold under conditions of considerable uncertainty. To date, we know little about the mechanisms that underlie decisions to back reward-based crowdfunding campaigns. However, it is likely that startup founders' possibility of showcasing their personalities in video pitches signals their trustworthiness, particularly, as other features, such as quality seals and customer testimonials, are often unavailable. We use signaling theory to reinforce the move from a feature-oriented perspective to a signaling perspective, as signals can transmit information about startup founders' otherwise imperceptible qualities and abilities. Based on a survey ( N  = 108), we investigate how perceived hubris – proven to be particularly salient in startup contexts – influences the funding decision of potential backers. We find that abilities and legitimacy of a startup founder are rated positively when s/he is perceived as hubristic. These results have implications for crowdfunding campaigns and highlight the relevance of personality traits in electronic markets.
Subjects: 
Reward-based crowdfunding
Personality traits
Hubris
Survey
Intuitive information processing
JEL: 
D81
M13
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article
Document Version: 
Published Version

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