Indirect reciprocity is increasingly recognized as a desirable approach to support social organizations which address intractable social problems within societies. Using social organizations operating in the third sector in Tanzania, we investigate how causal mechanisms help social organizations to initiate indirect reciprocal relations with benefactors. Moreover, we address the potential consequences of such relations to both benefactors and social organizations. Our findings reveal that establishing reciprocal relations is contingent to the credibility of social organizations and compassion capability of benefactors. Also, the findings identify positive and negative consequences of indirect reciprocity to both benefactors and social organizations. Based on these findings, we clarify the contradiction regarding the consequences of indirect reciprocity and propose a framework of interorganizational reciprocal relations that fosters social entrepreneuring in the third sector. Furthermore, we highlight the implications of our findings for theory and practice and suggest areas for future research.
The adoption of crowdfunding among entrepreneurs has increased recently, and several factors are believed to contribute to this increase. Surprisingly, extrinsic motivating factors' effect on this increased crowdfunding adoption trend is inadequately addressed. The study investigates the effect of extrinsic motivators on entrepreneurs' intention to adopt crowdfunding in Tanzania. It applies Partial Least Squares-based Structural Equation Modelling to examine the effect of the need for achievement, social networking, and the desire for financial power on entrepreneurs' intention to adopt crowdfunding. Using a sample of 241 entrepreneurs operating in Tanzania, the results indicate that the need for achievement and the desire for financial power influence entrepreneurs' crowdfunding intention. We observe no effect of the need for social networking on entrepreneurs' crowdfunding intention. These results imply that an entrepreneur's intention to borrow through a crowdfunding platform aligns more with the need for achievement and the desire for financial power rather than the need for social networking.
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