What Drives Motivation to Participate Financially in a Crowdfunding Community?

80 Pages Posted: 25 May 2013

See all articles by Michel Harms

Michel Harms

Independent; VU University Amsterdam

Date Written: July 13, 2007


This thesis aims to analyse consumers’ motivation to contribute financially to a project that wants to create something new. The principle of consumers pooling their money together in order to support a specific project initiated by someone else, is refered to as crowdfunding. From a practical point of view it is essential for everybody, who wants to use crowdfunding to finance the realization of a project to understand the motive forces of potential supporters. This research contributes to theory as it merges three different research fields creating a unique perspective to deal with this question: it combines relevant aspects from consumer behaviour, behavioural finance and social psychology. Moreover, theory of consumption value is used as a framework to capture five value dimensions relevant for driving motives to participate in crowdfunding activities. An extensive literature and a desk research led to the development of 15 hypotheses. Ten direct effects on the intention to invest, as well as four mediating and one moderating effect were identified. A fictional exemplary crowdfunding project and an associated questionnaire were developed to test the conceptual model. The results of 196 respondents illustrated various values that drive the intention to invest in a crowdfunding project. Significant values were found within the value dimensions financial value, quality performance value, social value and emotional value. Furthermore a positive moderating effect of lead user characteristics on the intention driving value personal utility was found.

Keywords: Crowdfunding, Motivation, Innovation

Suggested Citation

Harms, Michel and Harms, Michel, What Drives Motivation to Participate Financially in a Crowdfunding Community? (July 13, 2007). Available at SSRN: https://ssrn.com/abstract=2269242 or http://dx.doi.org/10.2139/ssrn.2269242

Michel Harms (Contact Author)

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV

Independent ( email )

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