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To what extent does temporal focus in idea formulation affect crowdfunding project success?

Schwepkes, L. (2022) To what extent does temporal focus in idea formulation affect crowdfunding project success?

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Abstract:This paper studies the relationship between temporal focus in idea formulations and the evaluation of those ideas. The temporal focus construct consists of three different foci: past, present and future focus. Another expression for temporal focus is subjective time, which means that individuals have different perceptions of the past, present and future. Since prior literature increasingly agreed upon temporal focus having an essential influence on an individual’s life, the different perceptions of the past, present and future lead to different decisions and behaviours by individuals in different situations. This study follows the deductive approach. Based on the literature review and the current state of the research domains of idea evaluation and biases we expect the present and future focus to have a positive effect on idea evaluation and the past focus to have a negative effect. We entered the crowdfunding context to study the effects. A dataset with 20,632 Kickstarter campaign ideas drawn from Kickstarter was chosen. The Linguistic Inquiry and Word Count program analyzed the degree of the three temporal foci used in the idea descriptions. Then, the file was analyzed in SPSS and the resulting regressions showed the effects. The first regression we conducted was a binary logistic regression with the dichotomy variable if the campaign was successful or failed as the outcome variable. Secondly, a linear multiple regression with the amount of money pledged as the dependent variable and thirdly, a negative binomial regression with the number of backers as the dependent variable were conducted. Overall, the present focus has the most beneficial effect although the temporal focus construct in general has a negative effect on idea evaluation. The present focus consistently has the least negative effect. Additionally, we found that the exposure boost granted by Kickstarter employees to some campaigns significantly affects the project’s success. The majority of the boosted campaigns have the present focus as the dominant focus. This research adds to the existing literature in that it analyses the effect of temporal focus in idea formulations on idea evaluation, and, expands the list of studied cognitive biases in the crowdfunding context.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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