Understanding the determinants of funders’ investment intentions on crowdfunding platforms: A trust-based perspective
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.
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A platform can provide structural assurances such as safety guarantees or escrow services.
“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).”
From Antecedents of trust in the sharing economy: A systematic review (2017) · cites this paper as Kang et al., 2016
Platform characteristics can enhance trust.
“Four studies measured several platform characteristics that can enhance trust (Kang et al., 2016;Lu et al., 2010;Pavlou & Gefen, 2004, Jones & Leonard, 2014).”
From Antecedents of trust in the sharing economy: A systematic review (2017) · cites this paper as Kang et al., 2016
Third-party recognition (e.g., a third-party seal, accreditation) influences trust in the platform.
“One study found that third-party recognition (e.g. a third-party seal, accreditation) influences trust in the platform (Kang et al., 2016).”
From Antecedents of trust in the sharing economy: A systematic review (2017) · cites this paper as Kang et al., 2016
Interpersonal trust-an orientation of one actor toward a specific person-is important for trust in the platform.
“The importance of interpersonal trustan orientation of one actor toward a specific person (Simpson, 2007)is recognised by three studies (Chen et al., 2009;Kang et al., 2016;Lu et al., 2010).”
From Antecedents of trust in the sharing economy: A systematic review (2017) · cites this paper as Kang et al., 2016
Buyers value seller verification.
“According to four studies, buyers value seller verification (Ha & Liu, 2010;Kang et al., 2016;Pavlou & Gefen, 2004;Teubner & Hawlitschek, in press).”
From Antecedents of trust in the sharing economy: A systematic review (2017) · cites this paper as Kang et al., 2016
The use of security measures by platforms enforces trust towards the platform.
“Five studies found that the use of security measures by platforms enforces trust towards the platform (Chen, Lai, et al., 2014;Kang et al., 2016;Lee & Lee, 2004;San-Martín & Camarero, 2014;Zhang et al., 2014).”
From Antecedents of trust in the sharing economy: A systematic review (2017) · cites this paper as Kang et al., 2016
Perceived informativeness and network externality are identified as influencing factors on trust towards the platform.
“Specifically, perceived informativeness (i.e. the ability to provide necessary information to customers) and network externality (i.e. the more users support a project, the less uncertainty it has) are identified as influencing factors.”
From Antecedents of trust in the sharing economy: A systematic review (2017) · cites this paper as Kang et al., 2016
Project characteristics, in the context of crowdfunding, affect trust towards the platform.
“Furthermore, Kang et al. (2016) found that project characteristics, in the context of crowdfunding, affect trust towards the platform.”
From Antecedents of trust in the sharing economy: A systematic review (2017) · cites this paper as Kang et al., 2016
Cites
Kim, D. J., Ferrin, D. L., & Rao, H. R. (2008) · Decision Support Systems · doi:10.1016/j.dss.2007.07.001 · Cited by 3,613 · see citing works
Pavlou, P. A. (2002) · The Journal of Strategic Information Systems · doi:10.1016/s0963-8687(02)00017-3 · Cited by 510 · see citing works
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Antecedents of trust in the sharing economy: A systematic review
ter Huurne, M., Ronteltap, A., Corten, R., & Buskens, V. (2017) · Journal of Consumer Behaviour · doi:10.1002/cb.1667 · Cited by 456 · see citing works
Zhang, L., Yan, Q., & Zhang, L. (2018) · Decision Support Systems · doi:10.1016/j.dss.2018.10.002 · Cited by 114 · see citing works
Gender differences in the antecedents of trust in mobile social networking services
Gong, X., Liu, Z., & Wu, T. (2021) · The Service Industries Journal · doi:10.1080/02642069.2018.1497162 · Cited by 18 · see citing works
- Authors
- Kang, M., Gao, Y., Wang, T., & Zheng, H.
- Affiliations
- Southwest Jiaotong University (CN)
- Southwestern University of Finance and Economics (CN)
- Venue
- Industrial Management & Data Systems
- Publisher
- Emerald
- Published
- 2016-09-12
- Volume
- 116
- Issue
- 8
- Pages
- 1800-1819
- ISSN
- 0263-5577 (ISSN-L)
- OpenAlex
- W2483325108
- Cited by
- 157
- References
- 2
- Citations by year
- 2026: 10 · 2025: 11 · 2024: 20 · 2023: 19 · 2022: 17 · 2021: 25 · 2020: 26 · 2019: 13 · 2018: 11 · 2017: 5
- FWCI
- 17.35
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Industrial Management & Data Systems (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Management Information Systems › FinTech, Crowdfunding, Digital Finance
- Social Sciences › Business, Management and Accounting › Accounting › Private Equity and Venture Capital
- Social Sciences › Decision Sciences › Information Systems and Management › Technology Adoption and User Behaviour
- Keywords
- crowdfunding, investment intention, trust theory, trust in relationships, structural assurance, value congruence, equity crowdfunding, crowdfunding platforms
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