Examining the role of dialogic communication and trust in donation-based crowdfunding tasks using information quality perspective

Abstract

PurposeThe study explores the role of dialogic public communication and information quality (IQ) in evaluating the operational performance of donation-based crowdfunding (DBC) tasks. These tasks are primarily used to support disaster relief operations. The authors also test the influence of cognitive trust and swift trust as moderating variables in explaining the relationship between both IQ and dialogic communication with operational performance.Design/methodology/approachThe authors used a primary survey to test the hypotheses. A total of 203 responses were collected from multiple crowdfunding platforms. The authors used archival data from task creators on donation-based crowdfunding platforms, and a structured questionnaire is also used to collect responses. Data are analyzed using Warp PLS 6.0. Warp PLS 6.0 works on the principle of partial least square (PLS) structured equation modeling (SEM) and has been used widely to test path analytical models.FindingsThe authors found out that the operational performance is explained significantly by the quality of information and its association with dialogic public communication. The results support the arguments offered by dialogic public communication theory and trust transfer theory in assessing the operational success of DBC. The study also confirms that cognitive trust positively moderates the relationship between IQ and organizational public dialogic communication and operational performance. It is also revealed that the duration of the DBC task has no significant control over dialogic public communication.Practical implicationsThe study lays practical foundations for task creators on DBC platforms and website designers as it sets the importance of both IQ and dialogic communication channels. The communication made by the task creator and/or the DBC platforms with the donors and potential donors in the form of timely and appropriate information forms the key to the success of any DBC task. The study also helps task creators choose a suitable platform to improve performance.Originality/valueThe authors propose a unique framework by integrating two theoretical perspectives: dialogic public relation theory and trust transfer theory in understanding the operational performance of donation-based crowdfunding tasks. The authors address DBC tasks catering to disaster relief operations by collecting responses from task creators on DBC platforms. The study uniquely positions itself in the area of information and communication.

Explaining Donation Behavior in Medical Crowdfunding in Social Media

“…Donation-based crowdfunding or charitable crowdfunding can be framed as a type of philanthropy, namely giving monetary aid to the needy without any material reward (Behl et al, 2020). Donation-based crowdfunding is considered to be the smallest type compared with the other three types of crowdfunding in many regions (Zhao & Shneor, 2020).…”

Crowdfunding for Independent Print Media: E-Commerce, Marketing, and Business Development

“…Moreover, the observed organizations tend to build up communities by applying crowdfunding techniques, which serve them as a starting point when launching new follow-up campaigns [167,168]. The use of external agencies to assist during crowdfunding campaigns, as outlined by Behl et al [111] and Du et al [112], could not be observed in the sample. A possible reason could be that the lean teams prefer to manage the campaign in-house, not spending funds on third-party support, which might not benefit the campaign to a large extent.…”

“…Among those who can choose the type of crowdfunding best-fitted to the need, besides the supporters and the campaign runners, additional stakeholders must be considered within the ecosystem [92,109]. External agencies support the success of the campaign with know-how and human resources [110][111][112]. Banks and external investors have an interest in knowing about the campaign, as well as the possible consequences, and more exposure means more parties being involved in critical decisions [97,98,113].…”

The Crowdfunding Model, Collective Intelligence, and Open Innovation

“…In sociology, trust is divided into parts of emotion and reason, and the former is defined as emotional trust and the latter as cognitive trust [41]. Cognitive trust positively coordinates the relationship between the quality of information and the operational performance of crowdfunding [42]. A system quality means desirable characteristics of information systems, such as ease of use and learning, flexibility, credibility, and sophistication.…”