Business Strategy on the Success of Sharia Securities Crowdfunding: Indonesian Sharia Crowdfunding Pioneer
Article Sidebar
Published
Jan 31, 2022
Main Article Content
Abstract
Purpose: Internet-based fundraising or commonly known as crowdfunding (CF) is currently a popular means for entrepreneurs to raise funds. The huge potential of the sharia economy encourages startup companies to establish sharia-based securities crowdfunding (SCF) companies. The purpose of this study is to provide an understanding of business strategies in order to achieve success in Islamic SCF companies in Indonesia.
Design/methodology/approach: This research employed a qualitative research design with a case study approach on the first sharia SCF company in Indonesia named Shafiq. The data were collected by conducting in-depth interviews with the board of directors at Shafiq.
Results: The research found that the success of Islamic SCF companies is triggered by the presence of teams, content, videos, platforms, use of social media, project quality, legality, business selection, and selection of sharia systems. In other words, this indicates that the factors of trust and security for both business actors and investors are the main factors that drive the success of sharia SCF companies. The novelty of this research is obtained by using a qualitative case study method to analyze the business strategy of Islamic securities crowdfunding, and there are no researchers who have investigated the strategy of Shafiq's company as the first sharia SCF company in Indonesia.
Paper type: Research paper
Downloads
Download data is not yet available.
Article Details
Section
Articles
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Babbie, E., Wagner, W. E., & Zaino, J. (2015). Adventures in Social Research: Data Analysis Using IBM SPSS Statistics (9th ed.). SAGE Publications Inc. https://us.sagepub.com/en-us/nam/adventures-in-social-research/book254654
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2010). Crowdfunding: An industrial organization perspective. Economics of Crowdfunding, 1–30. https://www.researchgate.net/publication/228468454_Crowdfunding_An_Industrial_Organization_Perspective
Biancone, P. Pietro, Secinaro, S., & Kamal, M. (2019). Crowdfunding and Fintech: business model sharia compliant. EJIF - European Journal of Islamic Finance, 12, 1–9. https://doi.org/10.13135/2421-2172/3260
Bogdan, R. C., & Biklen, S. K. (1982). Qualitative Research For Education; An Introduction to Theory and Method. Pearson.
Burtch, G., Ghose, A., & Wattal, S. (2013). An empirical examination of the antecedents and consequences of contribution patterns in crowd-funded markets. Information Systems Research, 24(3), 499–519. https://doi.org/https://doi.org/abs/10.1287/isre.1120.0468
Chakraborty, S., & Swinney, R. (2020). Signaling to the Crowd: Private Quality Information and Rewards-Based Crowdfunding. Manufacturing & Service Operations Management, 23(1). https://doi.org/https://doi.org/10.1287/msom.2019.0833
CIA. (2021). Indonesia - The World Factbook.
Danarahmanto, P. A., & Azis, Y. (2019). A Business Model to Support Sustainable Performance of Digital Startup Companies. CSID Journal Of Infrastructure Development, 2(2), 168–176. https://doi.org/https://doi.org/10.32783/csid-jid.v2i2.73
Danarahmanto, P. A., Primiana, I., Azis, Y., & Kaltum, U. (2020). The sustainable performance of the digital start-up company based on customer participation, innovation, and business model. Business: Theory and Practice, 21(1), 115–124. https://doi.org/10.3846/btp.2020.11053
Datta, A., Sahaym, A., & Brooks, S. (2018). Unpacking the Antecedents of Crowdfunding Campaign’s Success: The Effects of Social Media and Innovation Orientation. Journal of Small Business Management, 57, 63. https://doi.org/DOI:10.1111/jsbm.12498
Devaraj, S., & Patel, P. C. (2016). Influence of number of backers, goal amount, and project duration on meeting funding goals of crowdfunding projects. Economic Bulletin, 36(2), 1242–1249. https://ideas.repec.org/a/ebl/ecbull/eb-14-01063.html
Du, Z., Li, M., & Wang, K. (2019). ''The more options, the better?” Investigating the impact of the number of options on backers’ decisions in reward-based crowdfunding projects. Information & Management, 56(3), 429–444. https://doi.org/https://doi.org/10.1016/j.im.2018.08.003
Elsner, D. (2013). Corporate crowdfunding, Next Generation Financial Services Providers — The New Digital Power of Customers. Frankfurt am Main: Frankfurt School Publishing House.
Forsythe, S. M., & Shi, B. (2003). Consumer patronage and risk perceptions in Internet shopping. Journal of Business Research, 56(11), 867–875. https://doi.org/10.1016/S0148-2963(01)00273-9
Gafni, H., Marom, D., & Sade, O. (2019). Are the life and death of an early-stage venture indeed in the power of the tongue? Lessons from online crowdfunding pitches. Strategic Entrepreneurship Journal, 13(1), 3–23. https://doi.org/https://doi.org/10.1002/sej.1293
Gerber, E., Hui, J., & Kuo, P.-Y. (Patricia). (2012). Crowdfunding Why People Are Motivated to Post and Fund Projects on Crowdfunding Platforms. Proceedings of the International Workshop on Design, Influence, and Social Technologies Techniques, Impacts and Ethics. Computer Supported Cooperative Work 2012. https://www.researchgate.net/publication/261359489_Crowdfunding_Why_People_are_Motivated_to_Post_and_Fund_Projects_on_Crowdfunding_Platforms
Greiner, M. E., & Wang, H. (2010). Building consumer-to-consumer trust in e-finance market-places: An empirical analysis. International Journal of Electronic Commerce, 15(2), 105–136. https://doi.org/doi:10.2753/JEC1086-4415150204
Guba, E. G., & Lincoln, Y. S. (1981). Effective evaluation: Improving the usefulness of evaluation results through responsive and naturalistic approaches. Jossey-Bass. https://psycnet.apa.org/record/1992-97542-000
Haas, P., Blohm, I., & Leimeister, J. M. (2014). An empirical taxonomy of crowdfunding intermediaries. Paper presented at the Thirty-Fifth International Conference on Information Systems (ICIS). Conference: International Conference on Information Systems (ICIS), 1–18. https://www.researchgate.net/publication/265844619_An_Empirical_Taxonomy_of_Crowdfunding_Intermediaries
Koch, J.-A., & Siering, M. (2015). Crowdfunding Success Factors: The Characteristics of Successfully Funded Projects on Crowdfunding Platforms. In SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2808424
Mitra, T., & Gilbert, E. (2014). The language that gets people to give: Phrases that predict success on Kickstarter. CSCW ’14: Proceedings of the 17th ACM Conference on Computer Supported Cooperative Work & Social Computing, 49–61. https://doi.org/https://doi.org/10.1145/2531602.2531656
Moleong, L. J. (2007). Metodologi Penelitian Kualitatif [Qualitative Research Method]. PT Remaja Rosda Karya.
Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16. https://doi.org/doi:10.1016/j.jbusvent.2013.06.005
Mollick, E. (2016). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16. https://doi.org/doi:10.1016/j.jbusvent.2013.06.005
Mollick, E. R., & Kuppuswamy, V. (2014). After the Campaign: Outcomes of Crowdfunding. UNC Kenan-Flagler Research. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2376997
Pavlou, P. A., & Gefen, D. (2004). Building Effective Online Marketplaces with Institution-Based Trust. Information Systems Research, 15(1), 37–59. https://doi.org/https://doi.org/10.1287/isre.1040.0015
Pinkow, F., & Philip emmerich. (2020). Crowdfunding: The moderating role of the funding goal on factors influencing project success. Research Gate. https://doi.org/DOI:10.14279/depositonce-10354
Shneor, R., & Flaten, B.-T. (2015). “Opportunities for entrepreneurial development and growth through online communities, collaboration, and value creating and Co-creating activities”, in Kaufmann, H.R. and Shams, S.M.R. (Eds), Entrepreneurial Challenges in the 21st Century. Palgrave MacMillan.
Shneor, Rotem, & Vik, A. A. (2020). Crowdfunding success: a systematic literature review 2010–2017. Baltic Journal of Management, 15(2), 149–182. https://doi.org/https://doi.org/10.1108/BJM-04-2019-0148
Walsh, A. (2014). SEEK!: Creating and crowdfunding a game-based open educational resource to improve information literacy. Insights, 27(1), 63–67. https://doi.org/10.1629/2048-7754.113
Will, A. (1999). Individual financial services on network markets. Habilitation thesis, University of Augsburg.
Wincent, J. and Ortqvist, D. (2009). A comprehensive model of entrepreneur role stress antecedents and consequences’. Journal of Business and Psychology, 24(2), 225–243.
World Atlas. (2021). Muslim Population By Country.
Ziegler, T., Shneor, R., Wenzlaff, K., Odorovic, A., Johanson, D., Hao, R., & Ryll, L. (2019). Shifting Paradigms - the 4th European Alternative Finance Benchmarking Report, Cambridge Centre for Alternative Finance (Cambridge Alternative Finance Database and Reports). https://doi.org/10.13140/RG.2.2.31246.20800
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2010). Crowdfunding: An industrial organization perspective. Economics of Crowdfunding, 1–30. https://www.researchgate.net/publication/228468454_Crowdfunding_An_Industrial_Organization_Perspective
Biancone, P. Pietro, Secinaro, S., & Kamal, M. (2019). Crowdfunding and Fintech: business model sharia compliant. EJIF - European Journal of Islamic Finance, 12, 1–9. https://doi.org/10.13135/2421-2172/3260
Bogdan, R. C., & Biklen, S. K. (1982). Qualitative Research For Education; An Introduction to Theory and Method. Pearson.
Burtch, G., Ghose, A., & Wattal, S. (2013). An empirical examination of the antecedents and consequences of contribution patterns in crowd-funded markets. Information Systems Research, 24(3), 499–519. https://doi.org/https://doi.org/abs/10.1287/isre.1120.0468
Chakraborty, S., & Swinney, R. (2020). Signaling to the Crowd: Private Quality Information and Rewards-Based Crowdfunding. Manufacturing & Service Operations Management, 23(1). https://doi.org/https://doi.org/10.1287/msom.2019.0833
CIA. (2021). Indonesia - The World Factbook.
Danarahmanto, P. A., & Azis, Y. (2019). A Business Model to Support Sustainable Performance of Digital Startup Companies. CSID Journal Of Infrastructure Development, 2(2), 168–176. https://doi.org/https://doi.org/10.32783/csid-jid.v2i2.73
Danarahmanto, P. A., Primiana, I., Azis, Y., & Kaltum, U. (2020). The sustainable performance of the digital start-up company based on customer participation, innovation, and business model. Business: Theory and Practice, 21(1), 115–124. https://doi.org/10.3846/btp.2020.11053
Datta, A., Sahaym, A., & Brooks, S. (2018). Unpacking the Antecedents of Crowdfunding Campaign’s Success: The Effects of Social Media and Innovation Orientation. Journal of Small Business Management, 57, 63. https://doi.org/DOI:10.1111/jsbm.12498
Devaraj, S., & Patel, P. C. (2016). Influence of number of backers, goal amount, and project duration on meeting funding goals of crowdfunding projects. Economic Bulletin, 36(2), 1242–1249. https://ideas.repec.org/a/ebl/ecbull/eb-14-01063.html
Du, Z., Li, M., & Wang, K. (2019). ''The more options, the better?” Investigating the impact of the number of options on backers’ decisions in reward-based crowdfunding projects. Information & Management, 56(3), 429–444. https://doi.org/https://doi.org/10.1016/j.im.2018.08.003
Elsner, D. (2013). Corporate crowdfunding, Next Generation Financial Services Providers — The New Digital Power of Customers. Frankfurt am Main: Frankfurt School Publishing House.
Forsythe, S. M., & Shi, B. (2003). Consumer patronage and risk perceptions in Internet shopping. Journal of Business Research, 56(11), 867–875. https://doi.org/10.1016/S0148-2963(01)00273-9
Gafni, H., Marom, D., & Sade, O. (2019). Are the life and death of an early-stage venture indeed in the power of the tongue? Lessons from online crowdfunding pitches. Strategic Entrepreneurship Journal, 13(1), 3–23. https://doi.org/https://doi.org/10.1002/sej.1293
Gerber, E., Hui, J., & Kuo, P.-Y. (Patricia). (2012). Crowdfunding Why People Are Motivated to Post and Fund Projects on Crowdfunding Platforms. Proceedings of the International Workshop on Design, Influence, and Social Technologies Techniques, Impacts and Ethics. Computer Supported Cooperative Work 2012. https://www.researchgate.net/publication/261359489_Crowdfunding_Why_People_are_Motivated_to_Post_and_Fund_Projects_on_Crowdfunding_Platforms
Greiner, M. E., & Wang, H. (2010). Building consumer-to-consumer trust in e-finance market-places: An empirical analysis. International Journal of Electronic Commerce, 15(2), 105–136. https://doi.org/doi:10.2753/JEC1086-4415150204
Guba, E. G., & Lincoln, Y. S. (1981). Effective evaluation: Improving the usefulness of evaluation results through responsive and naturalistic approaches. Jossey-Bass. https://psycnet.apa.org/record/1992-97542-000
Haas, P., Blohm, I., & Leimeister, J. M. (2014). An empirical taxonomy of crowdfunding intermediaries. Paper presented at the Thirty-Fifth International Conference on Information Systems (ICIS). Conference: International Conference on Information Systems (ICIS), 1–18. https://www.researchgate.net/publication/265844619_An_Empirical_Taxonomy_of_Crowdfunding_Intermediaries
Koch, J.-A., & Siering, M. (2015). Crowdfunding Success Factors: The Characteristics of Successfully Funded Projects on Crowdfunding Platforms. In SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2808424
Mitra, T., & Gilbert, E. (2014). The language that gets people to give: Phrases that predict success on Kickstarter. CSCW ’14: Proceedings of the 17th ACM Conference on Computer Supported Cooperative Work & Social Computing, 49–61. https://doi.org/https://doi.org/10.1145/2531602.2531656
Moleong, L. J. (2007). Metodologi Penelitian Kualitatif [Qualitative Research Method]. PT Remaja Rosda Karya.
Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16. https://doi.org/doi:10.1016/j.jbusvent.2013.06.005
Mollick, E. (2016). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16. https://doi.org/doi:10.1016/j.jbusvent.2013.06.005
Mollick, E. R., & Kuppuswamy, V. (2014). After the Campaign: Outcomes of Crowdfunding. UNC Kenan-Flagler Research. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2376997
Pavlou, P. A., & Gefen, D. (2004). Building Effective Online Marketplaces with Institution-Based Trust. Information Systems Research, 15(1), 37–59. https://doi.org/https://doi.org/10.1287/isre.1040.0015
Pinkow, F., & Philip emmerich. (2020). Crowdfunding: The moderating role of the funding goal on factors influencing project success. Research Gate. https://doi.org/DOI:10.14279/depositonce-10354
Shneor, R., & Flaten, B.-T. (2015). “Opportunities for entrepreneurial development and growth through online communities, collaboration, and value creating and Co-creating activities”, in Kaufmann, H.R. and Shams, S.M.R. (Eds), Entrepreneurial Challenges in the 21st Century. Palgrave MacMillan.
Shneor, Rotem, & Vik, A. A. (2020). Crowdfunding success: a systematic literature review 2010–2017. Baltic Journal of Management, 15(2), 149–182. https://doi.org/https://doi.org/10.1108/BJM-04-2019-0148
Walsh, A. (2014). SEEK!: Creating and crowdfunding a game-based open educational resource to improve information literacy. Insights, 27(1), 63–67. https://doi.org/10.1629/2048-7754.113
Will, A. (1999). Individual financial services on network markets. Habilitation thesis, University of Augsburg.
Wincent, J. and Ortqvist, D. (2009). A comprehensive model of entrepreneur role stress antecedents and consequences’. Journal of Business and Psychology, 24(2), 225–243.
World Atlas. (2021). Muslim Population By Country.
Ziegler, T., Shneor, R., Wenzlaff, K., Odorovic, A., Johanson, D., Hao, R., & Ryll, L. (2019). Shifting Paradigms - the 4th European Alternative Finance Benchmarking Report, Cambridge Centre for Alternative Finance (Cambridge Alternative Finance Database and Reports). https://doi.org/10.13140/RG.2.2.31246.20800