Impact of Campaign Bundling on the Success of Donation-Based Crowdfunding
Bright Frimpong, Emmanuel Ayaburi, Francis Kofi Andoh-Baidoo, Xuan Wang, and Nan Xiao
International Journal of Electronic Commerce,
Volume 28, Number 2, 2024, pp. 217-246
Abstract:
Project success is a major challenge to the sustenance of crowdfunding platforms constituted for donation. While previous studies have recognized the importance of source reputation, establishing a credible reputation remains a formidable task for project founders. This study proposes a novel idea of achieving credibility through bundling, in which crowdfunding campaigns collaborate with similar projects (project bundling) or external entities (ideological bundling). This study examines how these two bundling strategies affect crowdfunding outcomes. Further, the study explores how sources of reputation and size establish boundaries of bundling. Using data from Mchanga.com, our analysis reveals a diverse effect of collaborative fundraising on the success of donation crowdfunding. Specifically, our findings indicate that project bundling positively impacts campaign success, whereas ideological bundling has a negative effect. The study contributes to the literature on bundling, credible reputation, and collaborative fundraising on digital platforms. This research also provides insights for practitioners to successfully manage donation-based crowdfunding campaigns.