Paper Number

ICIS2025-2248

Paper Type

Complete

Abstract

Live Streaming Commerce (LSC) is transforming digital retail, yet its broader impacts remain underexplored. This study investigates LSC's causal effects on seller performance and platform dynamics using longitudinal data from a major e-commerce platform in South Korea. Employing a robust stacked difference-in-differences method with multistage matching, we find that LSC significantly boosts store sales, driven primarily by capturing consumer attention. Notably, LSC disproportionately benefits smaller, low-visibility businesses compared to established players. We also uncover asymmetric competitive spillovers, benefiting similar large rivals but harming smaller non-participants. Despite this, the net platform-level impact remains positive, fueled by broadcaster success. Theoretically, we move beyond session-level LSC analysis to quantify these novel inter-firm/platform spillover dynamics, empirically demonstrating attention's contingent value based on market position. Our findings reveal LSC as a market-shaping mechanism altering competitive parity with democratizing potential.

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Dec 14th, 12:00 AM

From Attention to Advantage: The Market Spillovers of Live Streaming Commerce in Digital Retail Ecosystems

Live Streaming Commerce (LSC) is transforming digital retail, yet its broader impacts remain underexplored. This study investigates LSC's causal effects on seller performance and platform dynamics using longitudinal data from a major e-commerce platform in South Korea. Employing a robust stacked difference-in-differences method with multistage matching, we find that LSC significantly boosts store sales, driven primarily by capturing consumer attention. Notably, LSC disproportionately benefits smaller, low-visibility businesses compared to established players. We also uncover asymmetric competitive spillovers, benefiting similar large rivals but harming smaller non-participants. Despite this, the net platform-level impact remains positive, fueled by broadcaster success. Theoretically, we move beyond session-level LSC analysis to quantify these novel inter-firm/platform spillover dynamics, empirically demonstrating attention's contingent value based on market position. Our findings reveal LSC as a market-shaping mechanism altering competitive parity with democratizing potential.

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