Abstract
In contrast to developed nations, where the crowdfunding system is well established, in developing regions of Asia and especially Africa, this system is still in its infancy. As a step to address this discrepancy, two crowdfunding systems from the North African region are analyzed through the specific translation phases of the actor-network theory. This study identifies nine key actors in the crowdfunding system within a North African context and also dichotomizes them into primary and secondary actors based on their role in the development of the network. The study also highlights different technical and regulatory challenges, such as the establishment of legal regulatory framework, restrictions on capital access, and business investment associated with North African crowdfunding systems.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Agrawal, A., Catalini, C., & Goldfarb, A. (2010). The geography of crowdfunding. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1692661.
An, J., Quercia, D., & Crowcroft, J. (2014). Recommending investors for crowdfunding projects. In Proceedings of the 23rd international conference on world wide web, Seoul, Korea.
Angerer, M., Brem, A., & Kraus, S. (2017). Start-up funding via equity crowdfunding in Germany—a qualitative analysis of success factors. The Journal of Entrepreneurial Finance,19(1), 1–34.
Belleflamme, P., Lambert, T., Schwienbacher, A. (2010). Crowdfunding: An industrial organization perspective. In Paper presented at digital business models conference: understanding strategies, Paris, France, 25–26 June.
Belleflamme, P, Lambert, T, & Schwienbacher, A. (2012). Crowdfunding: tapping the right crowd. Journal of Business 29(5), 585–609. https://www.sciencedirect.com/science/article/pii/S0883902613000694
Brem, A., Bilgram, V., & Marchuk, A. (2019). How crowdfunding platforms change the nature of user innovation – from problem solving to entrepreneurship. Technological Forecasting and Social Change,144(2016), 348–360. https://doi.org/10.1016/j.techfore.2017.11.020.
Burtch, G., Ghose, A., & Wattal, S. (2013). An empirical examination of the antecedents and consequences of contribution patterns in crowd-funded markets 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/10.1287/isre.1120.0468.
Callon, M. (1999). Some elements of a sociology of translation: Domestication of the scallops and the fishermen of St. Brieuc Bay BT—the science studies reader. The Science Studies Reader,32, 67–83.
Callon, M., Courtial, J.-P., Turner, W. A., & Bauin, S. (1983). From translations to problematic networks: An introduction to co-word analysis. Social Science Information,22(2), 191–235. https://doi.org/10.1177/053901883022002003.
Carroll, N., Richardson, I., & Whelan, E. (2012). Service science. International Journal of Actor-Network Theory and Technological Innovation,4(3), 51–69. https://doi.org/10.4018/jantti.2012070105.
Clauss, T., Niemand, T., Kraus, S., Schnetzer, P., & Brem, A. (2020). Increasing crowdfunding success through social media: The importance of reach and utilisation in reward-based crowdfunding. International Journal of Innovation Management,24(03), 2050026.
Cvetinovic, M., Nedovic-Budic, Z., & Bolay, J. C. (2017). Decoding urban development dynamics through actor-network methodological approach. Geoforum,82(February), 141–157. https://doi.org/10.1016/j.geoforum.2017.03.010.
Dedeke, A. N. (2017). Creating sustainable tourism ventures in protected areas: An actor-network theory analysis. Tourism Management,61, 161–172. https://doi.org/10.1016/j.tourman.2017.02.006.
Dhir, S., & Dhir, S. (2018). Organizational capability and performance improvement: A study of e-Commerce firms in Indian Context. International Journal of Global Business and Competitiveness,13(1), 35–51.
Edmondson, A. C., & McManus, S. E. (2007). Methodological fit in management field research. Academy of Management Review,32(4), 1155–1179. https://doi.org/10.5465/AMR.2007.26586086.
Fourati, H. (2016). Information problems, crowdfunding and debt decision for business start-upsLes problémes informationnels, financement participatif et décision d’endettement pour la création d’entreprise. Journal of Small Business & Entrepreneurship. https://doi.org/10.1080/08276331.2016.1202095.
Gamble, J. R., Brennan, M., & McAdam, R. (2017). A rewarding experience? Exploring how crowdfunding is affecting music industry business models. Journal of Business Research,70, 25–36. https://doi.org/10.1016/j.jbusres.2016.07.009.
Gleasure, R., & Feller, J. (2016). A rift in the ground: Theorizing the evolution of anchor values in crowdfunding communities through the Oculus Rift case study. Journal of the Association of Information Systems,17(10), 708–736.
Golić, Z. (2014). Advantages of crowdfunding as an alternative source of financing of small and medium-sized enterprises. Збopник Paдoвa Eкoнoмcкoг Фaкyлтeтa У Иcтoчнoм Capajeвy,1(8), 39. https://doi.org/10.7251/zrefis1408039g.
Heeks, R., & Stanforth, C. (2015). Technological change in developing countries: Opening the black box of process using actor-network theory. Development Studies Research,2(1), 33–50. https://doi.org/10.1080/21665095.2015.1026610.
Hemer, J. (2011). A snapshot on crowdfunding. Enconstor. https://doi.org/10.1227/01.NEU.0000349921.14519.2A.
Hooghiemstra, S. N., & De Buysere, K. (2016). Crowdfunding in Europe. Fgf studies in small business and entrepreneurship. https://doi.org/10.1007/978-3-319-18017-5.
Ibrahim, N., & Verliyantina, N. (2012). The model of crowdfunding to support small and micro businesses in Indonesia through a web-based platform. Procedia Economics and Finance,4(Icsmed), 390–397. https://doi.org/10.1016/S2212-5671(12)00353-X.
infoDev. (2013). Crowdfunding’s potential for the developing world. Washington, DC: World Bank.
Jegelevičiūtė, S., & Valančienė, L. (2015). Comparative analysis of the ways crowdfunding is promoted. Procedia-Social and Behavioral Sciences,213, 268–274. https://doi.org/10.1016/j.sbspro.2015.11.536.
Jovanović, T., Brem, A., & Voigt, K. I. (2019). Who invests why? An analysis of investment decisions in B2B or B2C equity crowdfunding projects. International Journal of Entrepreneurship and Small Business,37(1), 71–86.
Khadija, M. O. (2018). Crowdfunding: Issue and prospects of development in Morocco. Revue du Contrôle de la Comptabilité et de l’Audit.
Kraus, S., Richter, C., Brem, A., Cheng, C. F., & Chang, M. L. (2016). Strategies for reward-based crowdfunding campaigns. Journal of Innovation and Knowledge,1(1), 13–23. https://doi.org/10.1016/j.jik.2016.01.010.
Latour, B. (2006). Reassembling the social (vol. 43). Oxford University Press Inc. https://doi.org/10.1163/156913308X336453.
Law, J. (2009). Actor network theory and material semiotics. The New Blackwell Companion to Social Theory. https://doi.org/10.1002/9781444304992.ch7.
Law, J., & Callon, M. (1988). Engineering and sociology in a Military Aircraft Project: A network analysis of technological change. Social Problems,35(3), 284–297. https://doi.org/10.1525/sp.1988.35.3.03a00060.
Lee, E., & Lee, B. (2012). Herding behavior in online P2P lending: An empirical investigation. Electronic Commerce Research and Applications,11(5), 495–503. https://doi.org/10.1016/j.elerap.2012.02.001.
Marzban, S., Asutay, M., & Boseli, A. (2014). Shariah-compliant crowd funding: An efficient framework for entrepreneurship development in Islamic countries. Harvard Islamic Finance Forum 2014. https://doi.org/10.13140/RG.2.1.2696.1760.
Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing,29(1), 1–16. https://doi.org/10.1016/j.jbusvent.2013.06.005.
Momaya, K. S. (2019). The past and the future of competitiveness research: A review in an emerging context of innovation and EMNEs. International Journal of Global Business and Competitiveness,14(1), 1–10. https://doi.org/10.1007/s42943-019-00002-3.
Najah, A., & Jarboui, A. (2015). Crowdfunding for financing innovative and social entrepreneurship: Literature Review. Journal of Business Management and Economics, 3(6), 21–24.
Onsongo, E. (2019). Institutional entrepreneurship and social innovation at the base of the pyramid: the case of M-Pesa in Kenya. Industry and Innovation,26(4), 369–390. https://doi.org/10.1080/13662716.2017.1409104.
Paget, E., Dimanche, F., & Mounet, J. P. (2010). A tourism innovation case An actor-network approach. Annals of Tourism Research,37(3), 828–847. https://doi.org/10.1016/j.annals.2010.02.004.
Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research,42(5), 533–544. https://doi.org/10.1007/s10488-013-0528-y.
Patton, M. (1990). Qualitative evaluation and research methods. Qualitative Evaluation and Research Methods. https://doi.org/10.1002/nur.4770140111.
Qawarik, S., & Asmar. (2020). Digital currencies, crowdfunding, and the civic sector in the MENA Region. Innovation for change network Mena Hub.
Saliha, T. (2018). Caracteristiques et fonctionnement du crowdfunding au Maghreb. Revue Marocaine de recherche en management et marketing (no. 18, pp. 189–206).
Samarah, W. E. A. R., & Alkhatib, S. F. S. (2020). Crowdfunding operations: Outreach factors in developing economies. Journal of Public Affairs. https://doi.org/10.1002/pa.1988.
Schniederjans, M., & Cao, Q. (2009). Alignment of operations strategy, information strategic orientation, and performance: An empirical study. International Journal of Production Research,47(10), 2535–2563. https://doi.org/10.1080/00207540701673465.
Shin, D. H. (2015). Application of actor-network theory to network neutrality in Korea: Socio-ecological understanding of network dynamics. Telematics and Informatics,33(2), 436–451. https://doi.org/10.1016/j.tele.2015.10.002.
Shin, H. (2015). The relationship between the Arab spring revolutions and entrepreneurial inhibitors, enablers, and activity in North Africa. Economics: Concepts, methodologies, tools, and applications (pp. 82–98). IGI Global. https://doi.org/10.4018/978-1-4666-7533-9.ch005.
Stanko, M. A., & Henard, D. H. (2017). Toward a better understanding of crowdfunding, openness and the consequences for innovation. Research Policy,46(4), 784–798. https://doi.org/10.1016/j.respol.2017.02.003.
Tatnall, A., & Gilding, A. (1999). Actor-network theory and information systems research. In Proc. 10th Australasian conference on information systems (pp. 955–966).
Tomczak, A., & Brem, A. (2013). A conceptualized investment model of crowdfunding. Venture Capital,15(4), 335–359. https://doi.org/10.1080/13691066.2013.847614.
Wallmeroth, J., Wirtz, P., & Groh, A. P. (2018). Foundations and trends R in entrepreneurship venture capital, angel financing, and crowdfunding of entrepreneurial ventures: a literature review Boston, Delft. Entrepreneurship. https://doi.org/10.1561/0300000066.
Walsham, G., & Sahay, S. (1999). GIS for district-level administration in India: Problems and opportunities. Management Information Systems Quarterly,23(1), 39–66. https://doi.org/10.2307/249409.
Yin, R. K. (2003). Case study research: Design and method. Newbury Park: Sage Publications.
Young, D., Borland, R., & Coghill, K. (2010). An actor-network theory analysis of policy innovation for smoke-free places: Understanding change in complex systems. American Journal of Public Health,100(7), 1208–1217. https://doi.org/10.2105/AJPH.2009.184705.
Acknowledgements
We acknowledge constructive comments that greatly improved the manuscript from the anonymous reviewers and editors.
Author information
Authors and Affiliations
Corresponding author
Appendix
Appendix
Interview guide for platforms founders and actors involved in the development of crowdfunding in the North African Region
-
Could you please introduce yourself and your expertise/connexion within crowdfunding?
-
Could you present chronologically your involvement with crowdfunding?
-
How would you explain the problem related to crowdfunding development?
-
What is your role regarding the crowdfunding development in your country?
-
Have you requested the support of different actors such as governmental bodies, donors, associations, etc.?
-
If yes, how did you approach them and get their attention?
-
Could you explain further how these actors emerged and were shaped?
-
Could you describe crowdfunding in terms of spreading and concept awareness?
-
According to you, who are the focal actors and why?
-
Could you name the most active actors involved in the crowdfunding development?
-
Please feel free to add any further information regarding the crowdfunding development that we did not mention previously.
Rights and permissions
About this article
Cite this article
Behi, K., Agarwal, N. & Brem, A. An Analysis of a Crowdfunding System in North Africa Based on the Actor-Network Theory. JGBC 15, 23–34 (2020). https://doi.org/10.1007/s42943-020-00007-3
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s42943-020-00007-3