Abstract
Institutional trust theory posits that trust is increasingly placed in abstract organizational systems (e.g., charitable organizations) as such institutions derive legitimacy from legal recognition and facilitate trust between strangers who cannot develop personal relationships. Despite the legitimacy and social acceptance of charities, there has been a significant decline in donor trust due to several cases of fraud and misappropriation. Building on theoretical insights from institutional trust and information systems (IS) research, we explore donors' perception of DAOsenabled NTFs that help restore trust in the charity sector. We theorized sociotechnical governance as an extension of institutional trust theory, capturing the decentralized governance dynamics of charitable endeavors. We specifically identify four main dimensions: DAO-based value cocreation, innovative collaboration, transparency by design, and trust building, which may help resolve the trust issue between charities and donors in providing humanitarian relief. Our research provides critical theoretical and practical insights into the importance of improved traceability, trackability, and collective decision-making in enhancing trust in abstract organizational systems, which have significant long-term societal implications.
Recommended Citation
Dosso, Mamadou; Senyo, PK; and Tingbani, Ishmael, "Beyond the Black Box: How Sociotechnical Governance of DAO-based Philanthropy Reconfigures Institutional Trust in the Charity Sector" (2025). GlobDev 2025. 5.
https://aisel.aisnet.org/globdev2025/5