Reputation Hurts: The Impact of Group Reputation on Voluntary Contributions on Prosocial Crowdfunding Platforms

Xuechen Luo, Chong (Alex) Wang, Ling Ge*

*Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

Online platforms that rely on voluntary user contributions face persistent challenges in maintaining sustained and active participation. This study investigates the effectiveness of a unique combination of social mechanisms—a group reputation system—in motivating individual voluntary contributions within the context of online prosocial crowdfunding. While a strong group identity can inspire member participation, the study also acknowledges a potential downside: a positive group reputation may “crowd out” individual contributions by signaling the efforts of other members. Using data collcted from Kiva, we empirically examine the impact of group reputation, measured in the form of group rankings, on both overall team contributions and individual member contributions. The findings indicate that teams with higher rankings experience a decline in subsequent contributions, supporting the idea of group reputation as a public good. Further analyses explore the mechanisms driving this negative impact, offering valuable insights into the dynamics of group reputation systems. © The Author(s) 2025.
Original languageEnglish
Number of pages20
JournalProduction and Operations Management
Online published13 Mar 2025
DOIs
Publication statusOnline published - 13 Mar 2025

Funding

The authors disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: The work was supported by the National Natural Science Foundation of China (Grant Nos. 72101155, 72131001, 72171152) and the Fundamental Research Funds for the Central Universities (2023TD003).

Research Keywords

  • Crowd-Out Effect
  • Group Reputation Systems
  • Online Platforms
  • Prosocial Crowdfunding
  • Voluntary Contribution

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