Swapping the underlying technology of crowdfunding contracts for blockchain – the perspective of Roger's five perceived attributes of innovation

ABSTRACT

Blockchain is projected to become essential in crowdfunding. However, diffusing this innovation in crowdfunding contracts raises practical concerns. Consequently, using data from a semi-systematic review, we develop a framework focusing on crowdfunding parties and the five perceived attributes of innovation diffusion to evaluate the possibility of diffusion in crowdfunding. Employing thematic analysis, we identify two possible modes for blockchain application in crowdfunding. Results indicate the technology offers superior relative advantage and compatibility for contracting parties. Nonetheless, fundraisers and investors could have potential diffusion complexities because of limited knowledge. Platforms face uncertainties over the degree of mediation and regulatory compliance. Further, trialability and observability issues cast doubts on the potential switch. Therefore, advanced stakeholder engagement and blockchain regulatory reform is required to expedite this switch.

KEYWORDS:

• Blockchain
• crowdfunding
• innovation
• fundraisers
• investors
• platforms

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 https://www.fundera.com/resources/crowdfunding-statistics.

2 https://www.fundera.com/resources/ico-statistics.

Additional information

Funding

This work was supported by The Science & Technology Department of Sichuan Province International Technology Cooperation Project/ Hong Kong Macao Taiwan Technology Cooperation Project [Grant Number 2019YFH0004].

Notes on contributors

Cephas Paa Kwasi Coffie

Cephas Paa Kwasi Coffie has lectured at the All-Nations School of Business, All Nations University College Koforidua-Ghana from 2009 to 2017. He tutors strategic management, business information system, accounting information system, and financial management. He is currently a PhD candidate at the School of Management and Economics, University of Electronic Science and Technology of China. He majors in Financial Technology. His research interest focuses on Blockchain, FinTech and Small Business Finance. He has published articles in high ranked peer-reviewed journals.

Hongjiang Zhao

Hongjiang Zhao is an associate professor of Finance at the School of Management and Economics, University of Electronic Science and Technology of China (UESTC). His main research interests focus on entrepreneurial finance and FinTech. He has two years of engineering work experience and four years of investment banking experience. He has published more than thirty papers including quite a few top journal papers and chaired six research grants at national or provincial level in China.