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Developing and Validating a Theory-Based Model of Crowdfunding Investment Intention—Perspectives from Social Exchange Theory and Customer Value Perspective

Xiaocong Yang (), Kai Zhao (), Xiaobo Tao () and Eric Shiu ()
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Xiaocong Yang: Department of Public Administration, Guangzhou University, Guangzhou 510006, China
Kai Zhao: School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China
Xiaobo Tao: School of Economics and Management, North China University of Technology, Beijing 100144, China
Eric Shiu: Department of Marketing, Birmingham Business School, University of Birmingham, Birmingham B15 2TT, UK

Sustainability, 2019, vol. 11, issue 9, 1-18

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.

Keywords: crowdfunding; investment intention; social commerce; structural equation modeling (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2019
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