Understanding the determinants of funders’ investment intentions on crowdfunding platforms

Abstract

Purpose The purpose of this paper is to identify funders’ motivations for investing in crowdfunding. It applies trust theory to propose a research model including three subject measures – fundraiser-related, project-related and platform-related factors. Trust has been categorized into cognitive and affective dimensions to specifically analyze the influential factors. Design/methodology/approach Bootstrapping is employed to analyze data collected from respondents with investment experience on equity crowdfunding projects. Structural equation modeling techniques are adopted to examine the factors that influence trust between funders and crowdfunding as well as the outcomes of this trust. Findings The results indicate that calculus trust and relationship trust collectively or separately transmit the effect of some antecedents to investment intention. However, there is no evidence indicating the mediating effects of calculus trust and relationship trust on the relationship of structural assurance and value congruence to investment intention. Practical implications This paper provides insights for crowdfunding fundraisers on how to build a strong relationship with funders, and it also gives crowdfunding designers advice on how to improve and perfect the platform functions. Originality/value This study contributes to a better understanding of the driving forces of calculus and relationship trust and their influence on investment intention. It is also the first to address a funder’s trust using a theoretical model describing the investor intention in crowdfunding and thereby extending the knowledge base of trust theory.

Antecedents of trust in the sharing economy: A systematic review

“…a positive view of technology) (Lu et al, ). The importance of interpersonal trust – an orientation of one actor toward a specific person (Simpson, ) – is recognised by three studies (Chen et al, ; Kang et al, ; Lu et al, ). For instance, mutual trust between members of a C2C platform extends to trust in the provider (Chen et al, ).…”

“…Four studies measured several platform characteristics that can enhance trust (Kang et al, 2016;Lu et al, 2010;Pavlou & Gefen, 2004, Jones & Leonard, 2014. A platform can, for instance, provide structural assurances such as safety guarantees or escrow services (i.e.…”

“…A platform can, for instance, provide structural assurances such as safety guarantees or escrow services (i.e. a bank account that is managed by a reliable third party) (Pavlou & Gefen, 2004;Lu et al, 2010;Kang et al, 2016). Also, the recognition of a platform by a third party and the quality of their website contributes to trust development (Jones & Leonard, 2014).…”

Crowdfunding como Alternativa no Turismo: Análise do Modus Operandi das Plataformas Brasileiras

“…Cocate e Pernisa Júnior (2012) Para Kang et al (2016), o crescimento surpreendente do crowdfunding entrou no âmbito tanto da pesquisa industrial quanto da acadêmica. Já é consenso que o crowdfunding deve se tornar a próxima grande tendência de investimento.…”

“…Trata-se de uma nova forma de viabilizar projetos, através de plataformas on-line, que divulgam o projeto para o recebimento de doações. Isso faz com que o que era distante (por falta de dinheiro) e burocrático (pelas exigências de bancos ou investidores) agora deixe de ser impossível (Bruton, Khavul, Siegel, & Wright, 2015;Machado & Mendonça, 2015;Kang, Gao, Wang & Zheng, 2016). Mostra-se como possibilidade para empreendedores que não têm capital suficiente, pois disponibilizam, em suas plataformas, projetos de pequeno, grande e médio portes para que as pessoas possam dar contribuição financeira de valores à sua escolha (Baumgardner, Neufeld, Huang, Sondhi, Carlos, & Talha, 2017).…”