Qualitative interview study reveals that weak ties build compensatory trust in crowdfunding campaigns during institutional collapse, highlighting diaspora networks as vital financial lifelines.
This study explores how weak ties foster trust in entrepreneurial crowdfunding, focusing on Lebanon, a context marked by economic collapse and institutional distrust. Adopting an inductive qualitative approach based on 42 semi-structured interviews, our research demonstrates how weak ties, especially within the diaspora, serve as trust mediators that reduce information asymmetries and improve crowdfunding success. Theoretically, it extends Granovetter's weak ties theory by revealing that weak ties generate compensatory trust mechanisms in fragile institutional environments. Empirically, the Lebanese case illustrates how social and diaspora networks emerge as a foundational basis for trust in contexts of formal financial collapse. Managerially, the study provides practical insights for entrepreneurs and platforms: promoting transparent communication, activating diasporic networks, and leveraging social validation can enhance campaign credibility and investor confidence. Overall, weak ties emerge as fundamental alternatives to institutional trust and catalysts of entrepreneurial resilience in times of crisis.
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helou et al. (2026) studied this question.
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