Funding decisions and the role of trust: a qualitative study of reward-based crowdfunding in the creative industries
ISSN: 0025-1747
Article publication date: 3 June 2022
Issue publication date: 8 August 2022
Abstract
Purpose
The purpose of this paper is to investigate funders' decisions in supporting reward-based crowdfunding (RBCF) in the creative industries by providing insights into the role of trust in the decision-making process of funders. In doing so, the authors examine how trust is developed through online interaction.
Design/methodology/approach
Data were collected from interviews and participation at short-term immersive events and gatherings. In addition, data were gathered from online discussions and social media platforms related to RBCF campaign. Qualitative analysis was performed to offer a deeper understanding of funder decision-making processes.
Findings
New insights were revealed into funder decision-making processes. Using foraging practices, funders participating in RBCF campaigns build trust before framing their final funding judgments. The paper’s findings highlight the interplay of organizational competency with previously uncharted relational dimensions associated with funder decision-making processes. The authors also revealed how nascent and experienced funders differ in their evaluation of risk.
Originality/value
This study offers an understanding of funder decision-making processes in creative RBCF campaigns. Their support of RBCF campaigns in the creative industries can present some potential risks. Further investigation is still required to reveal the funder's decision-making process. By looking at the roles of trust, the authors provide a conceptualization of competence and the relational dimension of trust, and how trust is developed as a means for mitigating risk.
Keywords
Acknowledgements
The first author gratefully acknowledges the Lancaster University Management School (LUMS) for its award in support of this research. The authors thank colleagues at LUMS for their input on earlier versions of this paper. Finally, the authors would like to thank the Management Decision editors and the four anonymous reviewers for their helpful comments and recommendations.
Citation
Cavalcanti Junqueira, M.I. and Soetanto, D. (2022), "Funding decisions and the role of trust: a qualitative study of reward-based crowdfunding in the creative industries", Management Decision, Vol. 60 No. 8, pp. 2174-2194. https://doi.org/10.1108/MD-08-2020-1095
Publisher
:Emerald Publishing Limited
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