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The effects of creator credibility and backer endorsement in donation crowdfunding campaigns success

Authors: 

Farasat Ali Shah Bukhari, Sardar Muhammad Usman, Muhammad Usman, Khalid Hussain

Source title: 
Baltic Journal of Management, 2019 (ISI)
Academic year of acceptance: 
2019-2020
Abstract: 

Purpose
The purpose of this paper is to investigate the effects of creator credibility and backer endorsement on the levels of donation to crowdfunding campaigns in a focal muslim community and to determine the success factors of projects in developing and developed countries.

Design/methodology/approach
This research adopts a quantitative approach, utilizing 223 crowdfunding projects from LaunchGood to examine the expected connections. The crowdfunding projects in the distinctive data set (Ramadan) are similar, permitting exploration of the role of creator credibility and backer endorsement in a unique context of religious-based crowdfunding activity.

Findings
Creators’ credibility and backers’ endorsements are decisive factors in crowdfunding success. Results from an additional test related to location (developing and developed countries) suggest that creators’ credibility is more important than backers’ endorsements, especially in developing countries.

Research limitations/implications
The projects used in the data set are homogenous and take place in a specific context. The limited number of available observations influences the testing function and capacity of the models and variables. Further, the investigation is related to a specific community, so might not be applicable to all communities.

Social implications
Potential supporters from the community are vital for the success of crowdfunding projects. This study informs campaign efforts in a religious community by stressing the importance of creators’ credibility and backers’ endorsements. The study also sheds light on factors that affect crowdfunding success in developing and developed countries.

Originality/value
This study helps to explain successful crowdfunding practices in donation-based crowdfunding projects within a religious community context. Results improve scholars’ ability to comprehend individuals’ supporting behavior, providing empirical evidence of creators’ credibility and backers’ endorsement on project success. The study also addresses the determinants of crowdfunding success in developing and developed countries.