The role of trust and e-WOM in the crowdfunding participation: the case of equity crowdfunding platforms in financial services in Iran

Abstract

Purpose

The aim of this research is to examine the roles of trust and electronic word-of-mouth (e-WOM) in crowdfunding (CF) participation for equity CF by taking into account the following antecedents of trust and e-WOM: intrinsic motivation (IM), extrinsic motivation (EM), deterrents, venture quality (VQ), third-party seal (TPS), value congruence (VC) and perceived accreditation (PA).

Design/methodology/approach

In this research, a survey among 408 active and potential funders in Iran was conducted. The statistical analysis used partial least squares structural equation modeling (PLS-SEM).

Findings

The results of this research revealed a significant influence of trust and e-WOM on participation in CF for equity CF. Extrinsic motivation had the greatest impact on trust and VC had the greatest impact on e-WOM.

Originality/value

This research extends the equity CF research area to CF success and considers the effects of some parameters on CF participation. This research provides many theoretical and practical implications.

Citation

Dehghani, M., Piwowar-Sulej, K., Salari, E., Leone, D. and Habibollah, F. (2023), "The role of trust and e-WOM in the crowdfunding participation: the case of equity crowdfunding platforms in financial services in Iran", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-09-2021-1358