Title: The design of a system dynamics model of crowdfunding for support of new knowledge-based IT startups

Authors: Ali Haji Gholam Saryazdi; Ali Rajabzadeh Ghatari; Alinaghi Mashayekhi; Alireza Hassanzadeh

Addresses: Department of Information Technology Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran ' Faculty of Management and Economics, Department of Information Technology Management, Tarbiat Modares University, Tehran, Iran ' Department of Management, Faculty of Management and Economics, Sharif University of Technology, Tehran, Iran ' Faculty of Management and Economics, Department of Information Technology Management, Tarbiat Modares University, Tehran, Iran

Abstract: Considering the problem of funding start-ups because of their nature, some entrepreneurs developed crowdfunding in which funding is done via social network. Crowdfunding is a complicated and dynamic phenomenon. In addition, studies conducted on crowdfunding are not significant in number and they have been conducted in exploratory and partial manner. As a result, it is necessary to adopt an approach capable of understanding complex dynamic phenomena so as to be able to explain a crowdfunding. The present paper designs a system dynamics model of crowdfunding for support of new Iranian knowledge-based IT startups so as to highlight the complexities and dynamics of crowdfunding. The results of model simulation suggest that the reward model will develop to a higher extent due to higher alignment with IT business designs. Also, the model suggests that passing of relevant regulations and monitoring of platforms improved the quality of IT business designs and secured the success of the companies after funding.

Keywords: crowdfunding; social network; crowd model building; system dynamics 2.0; group model building; system dynamics approach.

DOI: 10.1504/IJSPM.2020.110920

International Journal of Simulation and Process Modelling, 2020 Vol.15 No.5, pp.454 - 474

Received: 05 Dec 2018
Accepted: 12 Jan 2020
Published online: 01 Nov 2020 *

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