The role of prototype fidelity in technology crowdfunding

Wessel, Michael; Thies, Ferdinand; Benlian, Alexander (2022). The role of prototype fidelity in technology crowdfunding Journal of Business Venturing, 37(4), pp. 1-24. Elsevier 10.1016/j.jbusvent.2022.106220

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The presentation of a prototype is pervasive when technology entrepreneurs pitch to potential resource providers. Yet, we know little about how the fidelity of a prototype—the degree to which it approximates the final product—can affect funding decisions. We study the relationship between prototype fidelity and resource acquisition of nascent technology ventures in online crowdfunding. Based on the community logic under which crowdfunding operates and the diverse motivations of funders to participate, we develop the seemingly counterintuitive idea that moderate prototype fidelity is more effective in gaining support from funders than high prototype fidelity. Across our three empirical studies, we find support for the hypothesis that prototype fidelity has an inverted U-shaped relationship with crowdfunding performance. This relationship is moderated by the materiality of the offered rewards and the quality of the prototype presentation delivered through the online interface.

Item Type:	Journal Article (Original Article)
Division/Institute:	Business School > Institute for Digital Technology Management Business School
Name:	Wessel, Michael; Thies, Ferdinand0000-0003-3379-302X and Benlian, Alexander
Subjects:	H Social Sciences > H Social Sciences (General) T Technology > T Technology (General)
ISSN:	0883-9026
Publisher:	Elsevier
Language:	English
Submitter:	Ferdinand Thies
Date Deposited:	16 May 2022 11:37
Last Modified:	16 May 2022 11:37
Publisher DOI:	10.1016/j.jbusvent.2022.106220
Uncontrolled Keywords:	Prototype fidelity, Technology ventures, Crowdfunding, Resource acquisition, Institutional logics
ARBOR DOI:	10.24451/arbor.16965
URI:	https://arbor.bfh.ch/id/eprint/16965