Paper Number
2097
Paper Type
short
Description
The social commerce platform engages users in an agent-led network, leveraging local ties and communal trust. Agents are neighborhood influencers facilitating user referral, community engagement, and product marketing. We study the economic value of the agents to the platform based on their native endowed network externality and the trust formulated from the interaction with the users. Using detailed performance and referral data from a leading social commerce platform in Indonesia, we find that (1) agents with a higher level of endowed network externality outperform the ones with a lower level; (2) a more trustworthy and, surprisingly, less connected agent produces higher community sales; and (3) user’s perceived benevolence of the agent positively moderates the referral effect. The results suggest that the platform faces a trade-off between capitalizing on agents’ social connections and nurturing community trust.
Recommended Citation
Tao, Jingqiao; Jiang, Mingliang; and Zhai, Yingda, "Network Externality and Trust in Agent-Based Social Commerce" (2023). ICIS 2023 Proceedings. 9.
https://aisel.aisnet.org/icis2023/emobilecomm/emobilecomm/9
Network Externality and Trust in Agent-Based Social Commerce
The social commerce platform engages users in an agent-led network, leveraging local ties and communal trust. Agents are neighborhood influencers facilitating user referral, community engagement, and product marketing. We study the economic value of the agents to the platform based on their native endowed network externality and the trust formulated from the interaction with the users. Using detailed performance and referral data from a leading social commerce platform in Indonesia, we find that (1) agents with a higher level of endowed network externality outperform the ones with a lower level; (2) a more trustworthy and, surprisingly, less connected agent produces higher community sales; and (3) user’s perceived benevolence of the agent positively moderates the referral effect. The results suggest that the platform faces a trade-off between capitalizing on agents’ social connections and nurturing community trust.
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Comments
22-Digital