City Research Online

Abstract

Microfinance gave low-income individuals access to financial products, particularly through microlending; small loans were given to high-risk borrowers who typically lack collateral from non-traditional lenders (Bollinger & Yao, 2018). One of the most important funding sources for microfinance is crowdfunding. The global crowdfunding market was valued at 13.64 billion U.S. dollars and was estimated to double by 2028 (Statista Research Department, 2022).

Microloans, or crowdlending, have emerged as a significant source of crowdfunded finance for individuals, transcending philanthropy to offer implicit subsidies through minimal or non-existent interest charges to the lenders. Common assumptions in crowdfunding research include the idea that contributors are primarily motivated by financial returns, social recognition, or the intrinsic value of the projects they support. However, these assumptions overlook contributors' nuanced motivations and decision-making processes in the pro-social context (McKenny et al., 2017).

In this dissertation, I conducted two empirical studies on the dynamics influencing crowdfunding performance using approximately 350,000 microloans’ information from Kiva.org, the world’s largest crowdfunded microfinance platform (Kiva, 2022a). I also complemented the findings by a comprehensive review of 155 scholarly articles in the fields of management, strategy, and entrepreneurship. By leveraging signalling theory and self-determination theory, the first research investigates how social symbolic signals influence crowdfunding outcomes, and how these effects vary depending on the loan’s purpose. The second research examines the gender dynamics of immigrant entrepreneurs and explores how prevailing entrepreneurial ideals affect the outcomes of crowdfunding campaigns. This aspect of our study is crucial for understanding the intersection of identity, vulnerability, and prosocial signalling in entrepreneurial finance. Furthermore, to deepen understanding of this phenomenon-driven domain, I developed a conceptual framework based on insights from the systematic review.

In conclusion, these studies contribute to the broader discourse on crowdfunded microfinance by highlighting the complex interplay of social, economic, and psychological factors that determine its success. Through a multifaceted analysis that incorporates theories of signalling, self-determination, role congruity, we try to offer new insights into the strategic choices that can enhance crowdfunding performance in diverse and socially embedded contexts.

Publication Type:	Thesis (Doctoral)
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance H Social Sciences > HQ The family. Marriage. Woman H Social Sciences > HT Communities. Classes. Races T Technology > T Technology (General)
Departments:	Bayes Business School > Bayes Business School Doctoral Theses Bayes Business School > Faculty of Management Doctoral Theses

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