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In crowdfunding we trust: A trust-building model in lending crowdfunding

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  • Krystallia Moysidou
  • J. Piet Hausberg

Abstract

Trust critically affects the perceived probability of receiving expected returns on investment. Crowdfunding differs in many ways from traditional forms of investing. We have to ask what builds trust in this particular context. Based on literature regarding the formation of initial trust, we developed a model to explain which factors lead to crowdfunders’ trust in a crowdfunding project. We tested it on data collected from actual investors in a real project on a crowdlending platform. Our results show that trust in the crowdfunding platform and the information quality are more important factors of project trust than trust in the creator.

Suggested Citation

  • Krystallia Moysidou & J. Piet Hausberg, 2020. "In crowdfunding we trust: A trust-building model in lending crowdfunding," Journal of Small Business Management, Taylor & Francis Journals, vol. 58(3), pages 511-543, May.
    • Handle: RePEc:taf:ujbmxx:v:58:y:2020:i:3:p:511-543
    DOI: 10.1080/00472778.2019.1661682
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    Cited by:

    1. Ferrer, José María & Ulrich, Klaus & Blanco-González-Tejero, Cristina & Caño-Marín, Enrique, 2023. "Investors’ confidence in the crowdlending platform and the impact of Covid-19," Journal of Business Research, Elsevier, vol. 155(PA).
    2. Alexandra Mora-Cruz & Pedro R. Palos-Sanchez, 2023. "Crowdfunding platforms: a systematic literature review and a bibliometric analysis," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1257-1288, September.
    3. Moysidou, Krystallia & Cohen Chen, Smadar, 2023. "Inducing collective action intentions for healthcare reform through medical crowdfunding framing," Social Science & Medicine, Elsevier, vol. 333(C).
    4. Kirimhan, Destan, 2023. "Importance of anti-money laundering regulations among prosumers for a cybersecure decentralized finance," Journal of Business Research, Elsevier, vol. 157(C).

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