Why do funders support social welfare crowdfunding platforms? An elaboration likelihood perspective

Abstract

Crowdfunding entails small funds or contributions collected from the public to support and develop certain services or products. It has been widely adopted as an alternative method to fund social, cultural, and technological projects. Crowdfunding platforms can capitalize the social and digital networks, making them more efficient in targeting funders with minimum operational costs. The emergence of crowdfunding platforms as social information systems attracts researchers and academicians to study their increasing acceptance. In complement to qualitative and big-data analyses, behavioral models can offer robust insights into why individuals like to participate in the activities generated on these platforms. Prior research focuses on the user's acceptance of these platforms, but less attention has been given to users' engagement in crowdfunding-based social welfare projects. The study highlights people's crowdfunding intentions to fund social welfare projects based on the elaboration likelihood model. The study hypothesizes argument quality and technical advantage as central signals and shared value and reputation as peripheral signals, where outcome efficacy and social consciousness directly affect intentions to participate and moderate the relationship between signals and intentions. We collect data from 467 potential donors from China's 30 online crowdfunding platforms. The results indicate a more significant peripheral route effect on donation participation in social welfare crowdfunding. Social consciousness significantly predicts donation intentions where outcome efficacy and social consciousness strengthen the relationship between argument quality, shared values, and donation intentions to participate in socially responsible crowdfunding. The study provides implications for social collaboration for welfare projects through these platforms in light of these dynamic factors.