Abstract
This paper aims to analyze the determinants of participation in crowdfunding. As any individual may participate in a crowdfunding project, the study analyzes the general audience as potential contributors. This study develops and tests a model that includes personal determinants-internal locus of control and altruism-of the intention to participate in crowdfunding. Trust in crowdfunding is proposed as a mediator in the model. Data from 245 individuals were gathered via an online panel to test the hypotheses. Altruism and internal locus of control are found to enhance trust in crowdfunding, which, in turn, influences individuals’ intention to participate. Companies or entrepreneurs that are currently using or expecting to use crowdfunding to finance their project should develop marketing strategies that focus on enhancing trust towards their projects. Likewise, they should target individuals who are more altruistic and with higher levels of internal locus of control.
Highlights
The phenomenon of crowdfunding has grown significantly in recent years due to the expansion of the Internet
The results indicate that the measurement model fits the data well: X2 = 84.518; degrees of freedom = 59; Tucker-Lewis Index (TLI) = 0.982; Comparative Fit Index (CFI) = 0.986; Incremental Fit Index (IFI) = 0.976; NonNormed Fit Index (NNFI) = 0.982; Root Mean Square Error of Approximation (RMSEA) = 0.042
The hypotheses testing the relationship between personal determinants and trust in crowdfunding are supported, which means that altruism (H3, β=0.261, p
Summary
The phenomenon of crowdfunding has grown significantly in recent years due to the expansion of the Internet. Crowdfunding aims to collect money by drawing on small contributions [12], [64], [63]. It has emerged as an important alternative source of finance for various types of projects, enabling fundraising from a large number of individuals via online platforms [45], [54]. According to a sector report [59], there are more than 1250 active crowdfunding platforms (CFPs) around the world. A recent study conducted by Crowdfunding Universe [83] established that crowdfunding in Spain raised more than €113 million in 2016, reflecting an increase of 116% compared with 2015 when it raised just €52 million
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