National culture and the dynamics of crowdfunding market: an international study based on Hofstede dimensions
DOI:
https://doi.org/10.34630/e-rei.vi11.5291Keywords:
Crowdfunding, Crowdfunding market, National Culture, Hofstede's frameworkAbstract
Internet and other computer-based information system technologies have given rise to new types of alternative funding mechanisms. Crowdfunding (CF) offers an online platform that allows entrepreneurs to interact with funders and generate value through the creation of new ventures. The objective of the research is to understand if national culture variations affect the dynamics of the CF market activity. For that purpose, a dataset based on the survey of the Global Alternative Finance Market Benchmarking Report, the values of Hofstede's cultural dimensions and several control variables were used in the OLS multiple regression analysis. The econometric study covered 105 countries located in different parts of the world. The results reveal that CF variations across countries are influenced by national culture, specifically lower uncertainty avoidance, individualism, and long-term orientation.
The results attained bring important practical contributions to CF platform managers deal with the cultural characteristics of entrepreneurs and investors located in different countries, as well as for regulatory public financial entities and policy makers.
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