Empathy or perceived credibility? An empirical study of Muslim donating behaviour through online charitable crowdfunding in Indonesia

Rahmatina Awaliah Kasri and Esmeralda Indriani

International Journal of Islamic and Middle Eastern Finance and Management, 2021, vol. 15, issue 5, 829-846

Abstract: Purpose - This study aims to analyse the factors influencing Indonesian Muslims’ donation behaviour through online charitable donation-based crowdfunding. Design/methodology/approach - The study uses the stimulus-organism-response framework, with technological characteristics, campaign characteristics and religiosity as the stimulus; empathy, perceived credibility and quality of relationship as the organism; and intention to donate as the response variables. In analysing the data, it used the structural equation modelling approach with the partial least squares method. The study involved 405 Muslim respondents who have donated through the largest online charitable crowdfunding platform in Indonesia. Findings - The main findings suggest that empathy and perceived credibility are key determinants influencing the intention to donate through crowdfunding. Both factors are subsequently affected by initiator reputation, campaign popularity, content quality, transaction convenience and website quality. Such intention also goes hand in hand with the improved quality of relationships between the organisation and the donors, subsequently influenced by their religiosity. Practical implications - The main findings imply that fundraising campaigns and technology’s characteristics play a significant role in the intention to donate. Such findings are expected to enhance understanding of individuals’ philanthropic behaviour in Indonesia and to suggest appropriate operational strategies to facilitate individuals’ donation behaviour in charitable crowdfunding. Originality/value - Despite the high potential of charitable crowdfunding, studies regarding the factors influencing charitable donations made through such organisations remain scarce. This study contributes to the literature by taking the case of the largest online charitable crowdfunding platform in Indonesia.

Keywords: Charitable crowdfunding; Intention to donate; Muslim donation; Online donation; Voluntary giving behaviour (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:imefmp:imefm-09-2020-0468

DOI: 10.1108/IMEFM-09-2020-0468

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