Hospitality enterprises’ revival through crowdfunding: a cross-country study

Abstract

Purpose The purpose of this study is to suggest a reward-based crowdfunding approach and test customers’ financial contribution behaviour (FCB) as a fundraising strategy for hospitality enterprises. Design/methodology/approach To investigate this initiative, a conceptual model motivated by the theory of planned behaviour, integrating economic, emotional, social and altruistic values, perceived risk and electronic word of mouth has been considered. Partial least square structural equation modelling is applied to test the model. Data was collected from 263 respondents across three regions – Europe, Asia and Middle East and North Africa (MENA). Findings Findings revealed that attitude, self-efficacy and subjective norm of the customers positively influence their financial contribution intention. Further, Asian customers demonstrate significantly higher FCB in comparison to MENA. Research limitations/implications This study will be helpful for the hospitality players to raise the funds during the crisis and survive to pay the reward back to the customers. This study will be helpful to the crowdfunding platforms to understand the factors which influence the contribution behaviour. Practical implications The results of this study can encourage hoteliers and other hospitality players looking to approach their funding needs through crowdfunding by providing them a guide to maximise their possibility and level of success. Originality/value Hospitality businesses demand new approaches and strategies to keep operating during COVID-19 and post-COVID-19 time. This research is original to provide insights into customer contribution intentions during COVID-19.

Exploring the relationship between exposure to COVID-19 and donations during the COVID-19 pandemic: The mediating roles of emotions and risk perception

“…This risk assessment will, in turn, lead people to perform actions that can reduce their risk of being infected, for instance, donating money to help the government fight against the pandemic. Similarly, Baber et al (2022) found that people with a higher perceived risk of the COVID-19 pandemic made more financial contributions in crowdfunding. However, risk perception may not always motivate donations when considering the financial side.…”

“…Since its first onset in late 2019, COVID-19 has led to 6.22 million deaths worldwide during the past 3 years ( Center for Systems Science and Engineering at Johns Hopkins University, 2022 ). During the pandemic, government funding alone is not enough to overcome the healthcare system burden, the massive unemployment, the financial difficulty of hospitality industries and other corporations, and the lack of living necessities ( Baber et al, 2022 ). Donation from the general public plays an important role in mitigating the pressure in different social aspects.…”

Bibliometric Analysis of Islamic Crowdfunding: A Literature Review of Its Journey

“…Islamic crowdfunding campaigns are crucial for the hotel industry, which has been adversely affected by the COVID-19 pandemic (Baber et al, 2022). There is a need for better alternatives to enhance crowdfunding trust among donors for strategic sustainability in the conditions of turbulence and financial crisis caused by COVID (Jiao et al, 2022).…”

“…Based on Table 6, it can be seen that crowdfunding, fintech, blockchain, fintech, Malaysia, Islamic Finance, and Innovation occupy the 6th largest position in the Islamic crowdfunding document. Crowdfunding is the keyword with the largest number of documents, because crowdfunding campaigns are very important for the hotel industry which is affected by the COVID-19 pandemic (Baber et al, 2022). Factors that influence the success of a crowdfunding campaign include the inherent quality of the project in determining the success of the campaign (Wan Mohamad Nazarie and Williams, 2021).…”