Analysis of Reward-based Crowdfunding Participation Intention - Perceived Risk Perspective -

Abstract

As an alternative to the traditional funding methods, crowdfunding has been attracting great attention from the public lately. However, despite its growing popularity, crowdfunding still lacks academic research, and funders general participation mechanism is greatly under-studied. Moreover, current regulations and guidelines are insufficient and have limitation in handling the arising problems, especially in reward-based setting. Therefore, to implement proper mediations and invigorate the industry, deeper understanding of consumer behavior and their problem recognition are needed. Using technology acceptance model (TAM) extended with perceived risk facets, this paper aims to investigate the factors affecting users participation intention, their paths and magnitudes. Financial, performance, social, psychological, time, and privacy risks are selected as key risk facets. Total 445 samples are collected through online survey system and analyzed through structural equation model. The result shows that each of risk dimensions contributes users general risk perception, which in turn negatively impacts their participation intention, directly and indirectly. Furthermore, the result suggests that the path how perceived risk affects participation intention greatly differs depending on the users past funding experience. Perceived risk has both direct and indirect effect in experienced group, while it has only indirect effect through attitude toward crowdfunding in inexperienced group. As a conclusion, managerial and political implications are discussed based on the findings.