The Influence of Institutional Context on Crowdfunding Adoption for MSME Financing in Nigeria
type: CreativeWork
description: Micro, Small, and Medium Enterprises (MSMEs) in developing countries face exacerbated financial difficulties due to structural barriers, such as biased evaluations by traditional financial institutions, inadequate collateral, and systemic exclusion from formal lending channels (Ina Ibor et al., 2017). Over the last decade, crowdfunding has emerged as a promising alternative financing option, offering a more inclusive pathway to increase MSMEs’ access to finance, in the face of persistent funding challenges. However, adoption in developing economies has been slow necessitating the exploration of factors to promote it. Hence, the factors that influences MSMEs’ adoption of crowdfunding remains an enduring issue of interest in entrepreneurial finance research. Recent studies suggest that institutional context plays a critical role in facilitating crowdfunding adoption through the development of a viable crowdfunding ecosystem. Yet this relationship is yet to be investigated at a holistic level. While some studies have explored the impact of different dimensions of institutions on crowdfunding (Kshetri 2018; Agrawal and Jethy, 20214), only few studies have considered crowdfunding adoption through a multidimensional institutional context that considers a wide range of institutions (Kshetri, 2015; Kukk and Laidroo, 2020; Demiray et al., 2021). However, the said studies focused on the influence of these institutions on funders’ engagement, platform volumes and trust. The present study is different as it focuses on MSMEs’ adoption of crowdfunding through a mediating ecosystem perspective. Therefore, drawing on institutional theory, the study investigates the influence of institutional context on the adoption of crowdfunding for financing MSMEs in Nigeria. It examines how the regulatory, cultural-cognitive, and normative dimensions of institutional context impact crowdfunding adoption by MSMEs, with the mediating role of crowdfunding ecosystem viability. The study employs an …
abstract: Micro, Small, and Medium Enterprises (MSMEs) in developing countries face exacerbated financial difficulties due to structural barriers, such as biased evaluations by traditional financial institutions, inadequate collateral, and systemic exclusion from formal lending channels (Ina Ibor et al., 2017). Over the last decade, crowdfunding has emerged as a promising alternative financing option, offering a more inclusive pathway to increase MSMEs’ access to finance, in the face of persistent funding challenges. However, adoption in developing economies has been slow necessitating the exploration of factors to promote it. Hence, the factors that influences MSMEs’ adoption of crowdfunding remains an enduring issue of interest in entrepreneurial finance research. Recent studies suggest that institutional context plays a critical role in facilitating crowdfunding adoption through the development of a viable crowdfunding ecosystem. Yet this relationship is yet to be investigated at a holistic level. While some studies have explored the impact of different dimensions of institutions on crowdfunding (Kshetri 2018; Agrawal and Jethy, 20214), only few studies have considered crowdfunding adoption through a multidimensional institutional context that considers a wide range of institutions (Kshetri, 2015; Kukk and Laidroo, 2020; Demiray et al., 2021). However, the said studies focused on the influence of these institutions on funders’ engagement, platform volumes and trust. The present study is different as it focuses on MSMEs’ adoption of crowdfunding through a mediating ecosystem perspective. Therefore, drawing on institutional theory, the study investigates the influence of institutional context on the adoption of crowdfunding for financing MSMEs in Nigeria. It examines how the regulatory, cultural-cognitive, and normative dimensions of institutional context impact crowdfunding adoption by MSMEs, with the mediating role of crowdfunding ecosystem viability. The study employs an …
author: Oladejo, Oyerinmade Roseline
license: https://dora.dmu.ac.uk/bitstreams/e85f5b1f-9fbc-4148-95f6-817321b0197d/download
date published: 2024-12
date modified: 2026-07-24T06:18:44Z
provider: De Montfort University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: De Montfort University