Social capital and knowledge resources in exchange relationship: pathways to new product ideas for technology entrepreneurs

Purpose The purpose of this study is to explore the effect of different knowledge sharing elements based on the social capital perspective on the development of reciprocal exchange relationships and how they consequently influence new product ideas. We examine digitally enabled reward-based crowdfunding technology start-ups, where backers receive non-financial rewards and contribute feedback and knowledge. Design/methodology/approach The authors collected qualitative data from digitally enabled, reward-based crowdfunded technology start-ups to identify the knowledge management pathways for developing innovative products. Findings The key finding of this study is that reciprocal exchange relationships and adaptive sense-making (knowledge sharing and knowledge applications) are important process mechanisms to mobilize resources and capabilities for new product ideas. The authors, therefore, argue that digitally enabled crowdfunded start-ups place great emphasis on exchanging knowledge resources, resulting in the pursuit of new product ideas through combining learning gained from feedback and combining resources. Practical implications Developing new product ideas in technology start-ups requires founders to develop a portfolio of relational capital. This study provides valuable insights for crowdfunding platforms, startup founders and investors by highlighting the importance of backer knowledge resources in exchange relationships. This study offers a way forward for research scholars in crowdfunding start-up contexts; backer quality of exchange relationships is likely to lead to the development of new product ideas through the founder’s adaptive sense-making. Originality/value This work is among the few studies that focus on the backer knowledge resources in reward-based crowdfunding literature, providing important pathways for adaptive sense-making to help managers and business owners improve new product development ideas. This study offers valuable pathways for adaptive sense-making, enabling managers and starts-up owners to navigate dynamic market conditions more effectively.