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Innovation and knowledge sharing in crowdfunding: how social dynamics affect project success

ABSTRACT The aim of this study is to contribute to the existing literature on innovation and knowledge sharing in crowdfunding, by exploring the importance of internal social capital, and how the previous failure of a campaign may lead to the success of a second one from the same project creator. Thus, the research question of the study is: how do social dynamics affect project success in a crowdfunding context? The paper reports an illustrative case study which has been promoted on the Kickstarter platform. The authors analysed data, documentation and physical artefacts, especially regarding the network size during the funding period. The results show that the self-learning which project creators gain from previous failure supports them in relaunching their crowdfunding campaign. However, various revisions take place during the second campaign (e.g. social capital size, product redesign and knowledge sharing) to achieve success.