Beyond Funding: How Social Capital Shapes Trust, Collaboration, and Crowdfunding Success in Bahrain's Digital Ecosystem
DOI:
https://doi.org/10.56830/IJGMBS12202507Keywords:
Crowdfunding, Social capital, Bahrain, GCC, Islamic finance, SMEs, Emerging economies, Digital ecosystemAbstract
This research aims to explore the crowdfunding landscape of Bahrain and assess the impact of social capital on campaign success. Specifically, the study aims to analyse the interaction of the relational, structural, and cognitive aspects of social capital on crowdfunding results. 500+ responses were collected through the distribution of a cross-sectional, structured questionnaire in the form of a survey. The target population was campaign creators and public backers, as well as stakeholders in the Bahrain digital finance ecosystem. The survey included social capital, digital platform and campaign attributes, as well as funding results. The proposed relationships were examined through multiple regression analyses and structural equation modelling in Stata 16. Social capital influenced crowdfunding success in Bahrain, and relational capital, which included trust, reputation, and ties, had the strongest positive effect. Structural capital, which was related to the size and density of the campaigner's networks, had a positive influence on campaign results. Cognitive capital had a more complex effect, which was influenced by the cultural and regulatory framework of the GCC. Results also indicated that campaign transparency and platform design had a positive, synergistic effect on social capital and funding success. The findings are mostly applicable to Bahrain. Research on the other Gulf Cooperation Council (GCC) member countries or the rest of the Middle East is strongly encouraged. The findings should be of interest to policymakers, platform operators, and campaigners who use social capital to raise funds. We suggest that regulators develop frameworks for building trust and networks within crowdfunding systems
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