Blockbuster projects on crowdfunding platforms are those that have achieved outstanding and exceptional performance. Regarding the impact of blockbuster projects on crowdfunding platforms, there are two plausible yet opposing predictions: they may exhibit both a negative effect by monopolizing backer attention and resources and a positive effect by increasing the activeness of backer side. This tension could be further complicated, considering that blockbusters are inherently heterogeneous. Drawing on the cross-side network effects literature and integrating insights from the unique features of crowdfunding, we develop a theoretical framework highlighting the multidimensional view of blockbuster effects: blockbuster projects have an overall positive effect on the performance of concurrent projects (overall effect), and such positive effect is stronger for related blockbusters (local effect) and blockbusters emerging before the focal project (temporal effect). With data from a leading crowdfunding platform, the empirical analyses largely support our proposed framework. Using off-platform data and backer data, we unveil the mechanism driving the blockbuster effects: blockbusters increase the popularity of the platform, whereby backers participating in the blockbusters tend to develop positive impressions and heightened expectations, so that they are likely to participate in other concurrent projects. Our findings have important implications for project creators and platform operators.

Scarcity-based marketing strategy has been prevalently implemented in reward-based crowdfunding in the form of reward limits, whereby campaign creators restrict the number of backers for each reward tier. This study uncovers the effect of reward limits on eventual and concurrent funding performance. Specifically, we performed campaign-level and campaign day–level analyses on a unique data set from a dominant crowdfunding platform. At the campaign level, we determined that setting reward limits at the beginning of a campaign is beneficial, with the number of limited reward tiers exerting an inverted-U-shaped relationship with campaign performance. Further exploration of different forms of reward limits suggests that the scarcity effects largely originate from limited edition and price discount rewards. At the campaign day level, we determined that incorporating new limited edition rewards is helpful for attracting new contributions, whereas depleted price discount rewards will demotivate subsequent contributions. In addition, the goal-directed mechanism in crowdfunding plays an influential role in shaping scarcity effects. Our findings highlight the importance of considering backer-as-consumer needs in crowdfunding campaign design and the dynamics of campaign attribute changes in the fundraising process. Our findings also provide important practical implications for platform operators, campaign creators, and marketers.