Developing and validating a theory-based model of crowdfunding investment intention - perspective from social exchange theory and consumer value perspective

Xiaocong Yang, Kai Zhao, Xiaobo Tao, Eric Shiu

    Research output: Contribution to journalArticlepeer-review

    Abstract

    In order to improve public financing sustainability in China, the Chinese government has announced several administrative policies on crowdfunding, concerning platform construction and operation, in recent years. However, the existing policy scope rarely mentions the importance of social psychology, which also plays a decisive role in determining the participation and success rates of crowdfunding. Therefore, this study uses the knowledge from social exchange theory (SET) and customer value perspective (CVP) to develop and validate a conceptual model of the key determinants of the public’s intention in investing in crowdfunded projects in China. Based on the primary survey data, the SEM (structural equation modeling) estimations suggest that: (1) communication, shared values, investors’ perceived benefits, and perceived risk have significant effects on crowdfunding investors’ trust in fundraisers of a particular crowdfunding project, which in turn act on their commitment and intentions to invest in the project; (2) trust strengthens funding intentions through fulfilling commitments, whereas its direct effect on funding intentions is insignificant; (3) commitment has a direct and significant positive effect on the enhancement of funding intentions. These findings propose a new perspective of improving public policies to support small and micro enterprises (SMEs) and individual innovative projects in China.
    Original languageEnglish
    Article number11
    Pages (from-to)2525
    Number of pages253
    JournalSustainability
    Volume11
    Issue number9
    Publication statusPublished - 2019

    Keywords

    • crowdfunding; investment intention; social commerce; structural equation modeling

    ASJC Scopus subject areas

    • Business, Management and Accounting(all)

    Fingerprint

    Dive into the research topics of 'Developing and validating a theory-based model of crowdfunding investment intention - perspective from social exchange theory and consumer value perspective'. Together they form a unique fingerprint.

    Cite this