Assessing the impact of crowdfunding platforms on the investor’s intention in an emerging economy, and the mediating role of trusts

Abstract

The study  aims  to  examine  the factors  that  determine  investor’s  intentions  to  endow  on  a crowdfunding platform, which is a relatively under-researched phenomenon in developing and emerging countries. To complete this gap in the literature, we examined how the mediators; relational and calculus trust mediates the effect of our project-related factor network externality, and the factors related to the Platform, which are; third-party seal (TPS), structural assurance (SA), and  perceived  accreditation  (PA) on  the  entrepreneur’s intention.  This  research  particularly explores the factors influencing an entrepreneur's intention to invest in crowdfunding platforms, an area not widely explored in developing nations. The study looks at how certain elements, like network externality and platform-related aspects such as third-party seals, structural assurances, and perceived accreditations, influence trust and thus investment intentions. In simpler terms, this research offers insights for those looking to raise funds via crowdfunding. This study provides advice for people who want to raise money through crowdfunding. It helps them build strong connections with the people who donate money, and it also advises the people who design crowdfunding websites on how to make them work better. The variables, the key terms used are as their symbols i.e., Investor’s Intention (II), Network Externality (NE), third-party seal (TPS), Structural Assurance (SA), Perceived Accreditation (PA), Calculus Trust (CT), Relational Trust (RT).