Is it more than allocating funds? Exploring the effect of enterprise crowdfunding on employee engagement

Abstract

Enterprise crowdfunding (ECF) has evolved as a novel form to foster innovation and collaboration inside organizations. Research has so far focused on functional aspects related to the introduction of the crowdfunding mechanisms in enterprises (e.g., proposal characteristics or decision-making styles) leaving socio-economic effects on the organization and workforce unexplored. This work investigates the relationship between enterprise crowdfunding and the engagement of participating employees. By conducting an online survey with 321 employees of a multi-national manufacturing and electronics corporation, we find increased levels of employee engagement contingent upon participation in enterprise crowdfunding. These findings contribute to the understanding of effects related to the introduction of crowd-innovation platforms and enterprise social systems. From a practical perspective, they may foster the spread of enterprise crowdfunding as a tool being recognized to promote both, crowd-based innovation and employee engagement.