Beyond Alternative Finance: A Multi-Case Study of Relational Validation in the Moroccan Crowdfunding Ecosystem through Signaling and Social Capital Theories

Abstract

This study examines how Moroccan entrepreneurs use crowdfunding as an alternative source of finance in a context characterized by limited access to traditional funding. Based on a qualitative multi-case design, the research draws on semi-structured interviews with ten entrepreneurs from different sectors and regions in Morocco. The study mobilizes Signaling Theory and Social Capital Theory to explore how entrepreneurs build trust and legitimacy throughout the crowdfunding process. The findings show that crowdfunding is perceived not only as a financing mechanism, but also as a way to overcome banking constraints and institutional limitations. Entrepreneurs rely on personal networks, storytelling, transparency, and online engagement to strengthen credibility and attract contributors. The study introduces the concept of Relational Validation to explain how trust-based relationships and credibility signals interact in an emerging crowdfunding ecosystem, capturing a dynamic and collective process of legitimacy-building that is analytically distinct from trust, reputation, or social capital as conventionally conceived. This research contributes to the literature on entrepreneurial finance in emerging economies by providing empirical evidence from the Moroccan context and offering practical implications for entrepreneurs and policymakers interested in developing crowdfunding ecosystems in North Africa.