IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v33y2016icp143-153.html
   My bibliography  Save this article

Supply and demand on crowdlending platforms: connecting small and medium-sized enterprise borrowers and consumer investors

Author

Listed:
  • Maier, Erik

Abstract

Consumer crowdlending to small and medium enterprises is an increasingly relevant financial service phenomenon which depends on platforms as an intermediary. To match borrowers’ supply of loan requests and customers’ investment demand, this article proposes that crowdlending platforms need to initiate double switching behavior. On the one hand, switching of enterprise borrowers from traditional bank financing to crowdlending is driven by greater convenience (speed, flexibility, simplicity) and process transparency. Consumers, on the other, predominantly invest in crowdlending loans based on their economic performance relative to the choice set on the platform. We contribute to the literature on crowdfunding, satisfaction and switching in financial services.

Suggested Citation

  • Maier, Erik, 2016. "Supply and demand on crowdlending platforms: connecting small and medium-sized enterprise borrowers and consumer investors," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 143-153.
    • Handle: RePEc:eee:joreco:v:33:y:2016:i:c:p:143-153
    DOI: 10.1016/j.jretconser.2016.08.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698915301600
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2016.08.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Viswanath Venkatesh, 2000. "Determinants of Perceived Ease of Use: Integrating Control, Intrinsic Motivation, and Emotion into the Technology Acceptance Model," Information Systems Research, INFORMS, vol. 11(4), pages 342-365, December.
    2. Ganglmair-Wooliscroft, Alexandra & Wooliscroft, Ben, 2016. "Diffusion of innovation: The case of ethical tourism behavior," Journal of Business Research, Elsevier, vol. 69(8), pages 2711-2720.
    3. Belleflamme, Paul & Omrani, Nessrine & Peitz, Martin, 2015. "The economics of crowdfunding platforms," Information Economics and Policy, Elsevier, vol. 33(C), pages 11-28.
    4. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    5. Arbore, Alessandro & Busacca, Bruno, 2009. "Customer satisfaction and dissatisfaction in retail banking: Exploring the asymmetric impact of attribute performances," Journal of Retailing and Consumer Services, Elsevier, vol. 16(4), pages 271-280.
    6. Fred D. Davis & Richard P. Bagozzi & Paul R. Warshaw, 1989. "User Acceptance of Computer Technology: A Comparison of Two Theoretical Models," Management Science, INFORMS, vol. 35(8), pages 982-1003, August.
    7. Agrebi, Sinda & Jallais, Joël, 2015. "Explain the intention to use smartphones for mobile shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 16-23.
    8. Bernadette Szajna, 1996. "Empirical Evaluation of the Revised Technology Acceptance Model," Management Science, INFORMS, vol. 42(1), pages 85-92, January.
    9. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    10. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    11. Gerrit K.C. Ahlers & Douglas Cumming & Christina Günther & Denis Schweizer, 2015. "Signaling in Equity Crowdfunding," Entrepreneurship Theory and Practice, , vol. 39(4), pages 955-980, July.
    12. David T. Llewellyn, 2005. "Trust and confidence in financial services: a strategic challenge," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 13(4), pages 333-346, November.
    13. Chakravarty, Sugato & Feinberg, Richard & Rhee, Eun-Young, 2004. "Relationships and individuals' bank switching behavior," Journal of Economic Psychology, Elsevier, vol. 25(4), pages 507-527, August.
    14. Kurnia, Sherah & Choudrie, Jyoti & Mahbubur, Rahim Md & Alzougool, Basil, 2015. "E-commerce technology adoption: A Malaysian grocery SME retail sector study," Journal of Business Research, Elsevier, vol. 68(9), pages 1906-1918.
    15. Juanjuan Zhang & Peng Liu, 2012. "Rational Herding in Microloan Markets," Management Science, INFORMS, vol. 58(5), pages 892-912, May.
    16. Sachse, Katharina & Jungermann, Helmut & Belting, Julia M., 2012. "Investment risk – The perspective of individual investors," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 437-447.
    17. Kwon, Kyoung-Nan & Lee, Jinkook, 2009. "The effects of reference point, knowledge, and risk propensity on the evaluation of financial products," Journal of Business Research, Elsevier, vol. 62(7), pages 719-725, July.
    18. ., 2016. "Aggregate IMF lending," Chapters, in: The International Monetary Fund, chapter 4, pages 63-86, Edward Elgar Publishing.
    19. S. Sriram & Puneet Manchanda & Mercedes Bravo & Junhong Chu & Liye Ma & Minjae Song & Scott Shriver & Upender Subramanian, 2015. "Platforms: a multiplicity of research opportunities," Marketing Letters, Springer, vol. 26(2), pages 141-152, June.
    20. Kshetri, Nir, 2015. "Success of Crowd-based Online Technology in Fundraising: An Institutional Perspective," Journal of International Management, Elsevier, vol. 21(2), pages 100-116.
    21. Viswanath Venkatesh & Fred D. Davis, 2000. "A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies," Management Science, INFORMS, vol. 46(2), pages 186-204, February.
    22. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Markus Blut & Cheng Wang, 2020. "Technology readiness: a meta-analysis of conceptualizations of the construct and its impact on technology usage," Journal of the Academy of Marketing Science, Springer, vol. 48(4), pages 649-669, July.
    2. Fanea-Ivanovici Mina & Siemionek-Ruskań Małgorzata, 2019. "A Comparative Analysis of Crowdfunding in Poland and Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 182-193, May.
    3. Kim, Junic, 2021. "Platform quality factors influencing content providers’ loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    4. Kukurba Maria & Waszkiewicz Aneta, 2018. "Crowdfunding as a Form of Funding for Businesses in the Culturally-Changing Global Economy: A Literature Review," Journal of Intercultural Management, Sciendo, vol. 10(2), pages 99-137, June.
    5. Malek Hamouda & Imen Mejri & Donia Trabelsi, 2017. "Crowdequity et Crowdlending : deux alternatives de financement des TPE/PME. Le cas de l'entreprise Gifts for change," Post-Print hal-02373759, HAL.
    6. Ivan D. Kotliarov, 2020. "Digital transformation of the financial industry: The substance and trends," Upravlenets, Ural State University of Economics, vol. 11(3), pages 72-81, July.
    7. Arif Perdana & Pearpilai Jutasompakorn & Sunghun Chung, 2023. "Shaping crowdlending investors’ trust: Technological, social, and economic exchange perspectives," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
    8. Pandey, Dharen Kumar & Hassan, M.Kabir & Kumari, Vineeta & Zaied, Younes Ben & Rai, Varun Kumar, 2024. "Mapping the landscape of FinTech in banking and finance: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 67(PA).
    9. Choudhary, Priya & Thenmozhi, M., 2024. "Fintech and financial sector: ADO analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 93(C).
    10. Kanishka Gupta & Abdul Wajid & Dolly Gaur, 2024. "Determinants of continuous intention to use FinTech services: the moderating role of COVID-19," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 536-552, June.
    11. Lv, Jiancheng & Bi, Gongbing & Xu, Yang, 2023. "Crowdfunding pricing and quality overstatement in the presence of platform regulation," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    12. Youssef Riahi & Karim Garrouch, 2024. "A model explaining perceived investment value and switching intentions toward FinTech: the case of crowdlending," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 553-567, June.
    13. Małgorzata Hałasik-Kozajda & Martyna Olbryś, 2020. "Analiza ewolucji i struktury sektora fintech," Bank i Kredyt, Narodowy Bank Polski, vol. 51(5), pages 549-586.
    14. Hasnan Baber, 2020. "FinTech, Crowdfunding and Customer Retention in Islamic Banks," Vision, , vol. 24(3), pages 260-268, September.
    15. Faten Ben Slimane & Antoine Rousseau, 2020. "Crowdlending Campaigns for Renewable Energy: Success Factors," Post-Print hal-02371926, HAL.
    16. Seema Wati Narayan & Sahminan, 2018. "Has Fintech Influenced Indonesia’S Exchange Rate And Inflation?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 21(2), pages 177-190, October.
    17. Katarzyna Schmidt-Jessa & Maciej Stradomski, 2023. "Consumer awareness and acceptance of digital-only banks," Bank i Kredyt, Narodowy Bank Polski, vol. 54(4), pages 389-418.
    18. Leite, Rodrigo & Mendes, Layla & Camelo, Emmanuel, 2024. "Innovating microcredit: how fintechs change the field," Journal of Economics and Business, Elsevier, vol. 128(C).
    19. Dey, Bikash Koli & Seok, Hyesung, 2024. "Synergic effect of carbon regulation policies and multi-period credit financing in global retailing with reworking," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    20. Nisha Mary Thomas, 2023. "Modeling key enablers influencing FinTechs offering SME credit services: A multi-stakeholder perspective," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-27, December.
    21. Evgeny Popov & Anna Veretennikova & Alisa Safronova, 2020. "Mathematical Support for Financing Social Innovations," Mathematics, MDPI, vol. 8(12), pages 1-25, December.
    22. Eric Darmon & Nathalie Oriol & Alexandra Rufini, 2022. "Bids for speed: An empirical study of investment strategy automation in a peer-to-business lending platform," Post-Print hal-04397030, HAL.
    23. Jünger, Moritz & Mietzner, Mark, 2020. "Banking goes digital: The adoption of FinTech services by German households," Finance Research Letters, Elsevier, vol. 34(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nedra, Bahri-Ammari & Hadhri, Walid & Mezrani, Mariem, 2019. "Determinants of customers' intentions to use hedonic networks: The case of Instagram," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 21-32.
    2. Pedro Palos-Sanchez & Jose Ramon Saura & Raquel Ayestaran, 2021. "An Exploratory Approach to the Adoption Process of Bitcoin by Business Executives," Mathematics, MDPI, vol. 9(4), pages 1-23, February.
    3. Mäntymäki, Matti & Salo, Jari, 2013. "Purchasing behavior in social virtual worlds: An examination of Habbo Hotel," International Journal of Information Management, Elsevier, vol. 33(2), pages 282-290.
    4. Irfan Bashir & C. Madhavaiah, 2014. "Determinants of Young Consumers’ Intention to Use Internet Banking Services in India," Vision, , vol. 18(3), pages 153-163, September.
    5. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    6. Hsiao, Chun Hua & Yang, Chyan, 2011. "The intellectual development of the technology acceptance model: A co-citation analysis," International Journal of Information Management, Elsevier, vol. 31(2), pages 128-136.
    7. Netsanet Haile & Jörn Altmann, 2016. "Structural analysis of value creation in software service platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(2), pages 129-142, May.
    8. Sung S. Kim & Naresh K. Malhotra, 2005. "A Longitudinal Model of Continued IS Use: An Integrative View of Four Mechanisms Underlying Postadoption Phenomena," Management Science, INFORMS, vol. 51(5), pages 741-755, May.
    9. Haque, Md Ziaul & Qian, Aimin & Hoque, Md Rakibul & Lucky, Suraiea Akter, 2022. "A unified framework for exploring the determinants of online social networks (OSNs) on institutional investors’ capital market investment decision," Technology in Society, Elsevier, vol. 70(C).
    10. Agarwal, Reeti & Rastogi, Sanjay & Mehrotra, Ankit, 2009. "Customers’ perspectives regarding e-banking in an emerging economy," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 340-351.
    11. Nan Zhang & Xunhua Guo & Guoqing Chen, 2011. "Why adoption and use behavior of IT/IS cannot last?—two studies in China," Information Systems Frontiers, Springer, vol. 13(3), pages 381-395, July.
    12. Neill, William D. & Richard, James E., 2012. "Intranet portals: Marketing and managing individuals’ acceptance and use," Australasian marketing journal, Elsevier, vol. 20(2), pages 147-157.
    13. Chaouali, Walid & Ben Yahia, Imene & Souiden, Nizar, 2016. "The interplay of counter-conformity motivation, social influence, and trust in customers' intention to adopt Internet banking services: The case of an emerging country," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 209-218.
    14. McLean, Graeme & Osei-Frimpong, Kofi & Al-Nabhani, Khalid & Marriott, Hannah, 2020. "Examining consumer attitudes towards retailers' m-commerce mobile applications – An initial adoption vs. continuous use perspective," Journal of Business Research, Elsevier, vol. 106(C), pages 139-157.
    15. Simarpreet Kaur & Sangeeta Arora, 2023. "Understanding customers’ usage behavior towards online banking services: an integrated risk–benefit framework," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 74-98, March.
    16. Julian M. Müller, 2019. "Comparing Technology Acceptance for Autonomous Vehicles, Battery Electric Vehicles, and Car Sharing—A Study across Europe, China, and North America," Sustainability, MDPI, vol. 11(16), pages 1-17, August.
    17. Türker, Cansu & Altay, Burak Can & Okumuş, Abdullah, 2022. "Understanding user acceptance of QR code mobile payment systems in Turkey: An extended TAM," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    18. Kazem Mochkabadi & Christine K. Volkmann, 2020. "Equity crowdfunding: a systematic review of the literature," Small Business Economics, Springer, vol. 54(1), pages 75-118, January.
    19. Mütterlein, Joschka & Kunz, Reinhard E. & Baier, Daniel, 2019. "Effects of lead-usership on the acceptance of media innovations: A mobile augmented reality case," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 113-124.
    20. Schikofsky, Jan & Dannewald, Till & Kowald, Matthias, 2020. "Exploring motivational mechanisms behind the intention to adopt mobility as a service (MaaS): Insights from Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 131(C), pages 296-312.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:33:y:2016:i:c:p:143-153. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.