ng2013
ng2013
A R T I C L E I N F O A B S T R A C T
Article history: This study investigates the moderating effect of culture and the mediating effect of trust in a social
Received 7 September 2012 network community on the relationship between social interactions and purchase intention. Trust
Received in revised form 5 August 2013 transference theory, social interactions, and Hofstede’s cultural dimensions are considered. The findings
Accepted 10 August 2013
from the research support the moderating effect of culture and the mediating role of trust in a social
Available online 26 August 2013
network community on the relationship between social interactions (in terms of closeness and
familiarity) and intention to purchase in social commerce environments. In addition, the mediating
Keywords:
effect of trust in a social network community is conditional on culture. The findings also suggest that
Social commerce
Cross-cultural study
trust in a social network community may be attributed to the closeness and familiarity developed among
Social interactions its members resulting from social interactions. The results presented herein are in line with the trust
Trust transference transference theory. The empirical study results also suggest that social commerce market penetration in
Social network site East Asia may have relatively fewer barriers to overcome and be more likely to succeed than in the Latin
Subgroup analysis America region.
ß 2013 Elsevier B.V. All rights reserved.
1. Introduction and purpose brand influence, and facilitating advice and assistance sharing
through discussion groups [38].
The popularity and growth of social commerce in recent years Specifically, social commerce involves the use of social media that
have been driven by consumer-product information sharing. supports social interaction, communications, and user-generated
This development in social commerce is due to two main content such as ratings and reviews, blogs, and microblogging to
influential factors: consumer bargaining power and rapid assist in the online buying, selling, and marketing of products and
progress in information technologies, in particular the introduc- services. Its unique characteristics are the provision of an opportunity
tion of Web 2.0. The improved bargaining power among for customers to interact to make better-informed buying decisions
consumers has caused a noticeable shift in the relationship [82] and allowing the customer to connect with, listen to, understand,
between businesses and current and potential consumers. Even and engage other people regarding their purchasing experiences to
more interesting is the fact that these consumers have a very improve their future shopping experience [9].
close relationship, as in the case of social networking sites. The A forecast made by the business consulting firm Booz &
introduction of Web 2.0 allows the creation of user-controlled Company (2012), predicted that the social commerce market will
content and Internet interactivity. be worth $30 billion in annual sales by 2015. A report from the IDC
In this study, we define social commerce as the online buying consulting firm suggested that 10 to 15 percent of consumer
and selling activities initiated via social media, which entails spending in developed countries in the next three to five years
business transactions through either social media (e.g., on a (2011–2015) may go to social networking sites such as Facebook
Facebook store) or other e-commerce sites. Kaplan and Haenlein [49]. The most powerful drivers possibly underpinning the
[30] define social media as ‘‘a group of Internet-based applications explosion of the social commerce market are the word-of-mouth
that build on the ideological and technological foundations of Web marketing and viral marketing capabilities inherent on a social
2.0, and that allow the creation and exchange of user-generated commerce site or fan store. The possible incentive-driven advocacy
content [UGC]’’ (p. 61). UGC is beneficial in providing useful provided by such online stores is also a major factor.
information for product marketing and development, increasing The rapid growth of social networks (e.g., Facebook and Twitter)
over the past decade or so may be attributed to social interaction
[28]. It is social interaction that results in word-of-mouth marketing,
* Corresponding author. Tel.: +886 3 4638800x2614; fax: +886 3 4352077. product advocacy for a consumer brand, and social capital building
E-mail addresses: [email protected], [email protected] [26]. Social commerce sites may be grouped into two types: (1) firms
0378-7206/$ – see front matter ß 2013 Elsevier B.V. All rights reserved.
http://dx.doi.org/10.1016/j.im.2013.08.002
610 C.-S.P.P. Ng / Information & Management 50 (2013) 609–620
such as Amazon, Levis, TripAdvisor, Mazda, and Gap, which link to goals [73], and enable consumers to browse and view products as
Facebook and have Facebook fan pages and apps that take potential well as add them to a shopping cart [51]. In contrast to traditional
customers to their online-stores; and (2) companies such as brick and mortar stores, social commerce sites allow consumers to
Hallmark, Groupon USA, Pantene North America, and Watson exchange product feedback and provide information that may
Malaysia that connect to Facebook and have Facebook fan pages and influence others’ choices by expressing their own views and
apps that allow potential customers to buy directly from their experiences. This process can create word of mouth (WOM)
Facebook stores. For these consumer brands, the main purposes of marketing effects, as it provides a means for consumers to discuss
utilizing Facebook are to engage with consumers, promote special products and circulate relevant information. This can build active,
offers, and/or provide an opportunity for consumers to have social mutually beneficial consumer-to-consumer and consumer-to-
interactions with other consumers and friends. marketer communications [78].
Social networks such as the Chinese website Taobao that provide In social commerce, the main aim of the seller is to convert
a forum for consumer ratings, evaluations, and advice on products customers into brand advocates, whereas the aim of the buyer is to
have been found to influence other customers’ trust in retailers [16]. make better informed purchasing decisions [30,49]. Either or both
Business consultants [3] report that ‘‘individuals on a social of these aims are achieved when a consumer shares purchasing
networking site are usually connected to other individuals whom experiences. Some social commercial sites such as Groupon and
they trust and respect.’’ (p. 1). This phenomenon occurs because LivingSocial offer the service of group buying to encourage the
social networking environments typically involve an atmosphere of spread of deal information.
trust between friends. These studies, to some extent, indicate that One survey conducted with 1787 respondents on social media
social network users trust the people with whom they communicate showed that one third of shoppers would prefer to make a
or interact in a social network community. purchase directly from Facebook or Twitter [66]. This statistic
However, according to another marketing report by Booz & indicates a promising future for social commerce. For example,
Company in 2010, 73% of online shoppers would not purchase Facebook provides a marketplace, advertising means, and social
goods on Facebook or through other social networking sites. Some network services. Facebook’s strengths as a powerful social
academic researchers [44] have found little evidence of peer commerce site are rooted in its Social Plugins (e.g., the ‘Like,’
influence among college students using Facebook. This lack of ‘Send,’ ‘Comment,’ ‘Recommendation’ buttons) and Open Graph
evidence suggests that social network users do not equally trust or Protocol. Facebook allows a business to conveniently and
are not equally influenced by their connections on a social professionally set-up a Facebook fan store [12].
network. This may be because some friends’ opinions have a
disproportionate influence on one’s behavior [24]. 2.2. Theoretical background
In addition, these inconsistent findings may be due to the
differences in cultural and national contexts [32]. In particular, the 2.2.1. Social interactions
behavior of consumers in the West (e.g., the United States) may not A social network site provides various types of social interac-
be applied to all cultures [53]. As different countries have varying tions and networking features such as message posting, informa-
inherent values, symbols, and cultures, the behavior of social tion exchange and contact management. In addition to basic social
network users and their intention to purchase on social commerce interaction features, other forms of social interaction such as
sites may not be equivalent. Following this possibility, the purpose consumers’ numerical ratings of products (favorability) and the
of this study is to investigate the role of culture in influencing number of online reviews (visibility) have been found to correlate
peers’ online shopping intentions in social commerce conducted with sales [23] and social influence [81]. Wu and Wang [79] also
on Facebook in a cross-regional setting involving Latin American discovered that the social interaction enabled by social network
and East Asian countries – two relatively understudied regions. In sites, which allows users to cultivate, foster, and maintain online
particular, we are interested in studying (1) the moderating effect relationships, is a significant predictor of behavioral intentions.
of the cultural factor on the relationships between social These studies suggest that interactions within a social network
interaction and purchase intention in social commerce, and the community boost reliance and trust in a user’s personal relation-
effect of the cultural factor on the mediating role of trust in a social ship.
network community; and (2) the mediating effect of trust in a According to Kelman [33], there are three categories of social
social network community on the relationship between social influence: compliance, identification, and internalization. Among
interaction and purchase intention. This study attempts to extend these three, the internalization category is the most relevant to
the trust transference theory by incorporating the concepts of online social networking and commerce. Internalization is defined
social interaction, trust in a social network community, and as a situation in which a person accepts and agrees with another’s
cultural issues to better understand how these concepts influence beliefs and behavior both publicly and privately because the
purchase intentions in the context of social commerce. influential content is intrinsically rewarding [33]. Online social
The subsequent organization of this paper is as follows. Section networking and social commerce fall into this category because
2 provides a review of the literature on social commerce and the friends’ interactions, participation in online activities, and product
theoretical background of social interactions, trust transference, recommendations and reviews are written, sent, and read freely,
and culture. Section 3 proposes the research model and hypothe- and voluntarily among members of the site’s community. A user’s
ses, and Section 4 describes the research methods adopted in this selected types of interaction, participation in online activities, and
study. Section 5 presents the research findings, and section 6 offers buy-in for product recommendations are based on her own choices
the contributions and implications of this study for use in research and preferences. Therefore, the social influence of a friend’s
and practice. product recommendation may have an important role in the
product’s acceptance and recommendations among other friends.
2. Literature review One of the salient ways to measure the social influence of a
sender on a receiver is by quantifying the social impact the sender
2.1. Social commerce has on the receiver [40]. The social impact theory states that the
impact of any information source may be accounted for as a
Similar to e-commerce, social commerce sites consist of function of three factors: the number of people who make up that
communities of customers with similar interests, passions or source, the source’s immediacy or closeness with the receiver, and
C.-S.P.P. Ng / Information & Management 50 (2013) 609–620 611
the source’s tie strength with the receiver [40]. For simplicity, in 2.2.3. National culture
this study we are only considering one source of information at a A study by [72] emphasized the importance of cultural factors
time. in influencing e-commerce adoption decisions. In studying the
Lee and Kwon [41] used the term ‘‘intimacy’’ to describe the issue of culture, reference is made to the institutional framework
closeness or immediacy factor, saying it is a ‘‘feeling of closeness established through Geert Hofstede’s dimensions of national
and emotional bonding, involving intense liking, moral support, culture. The six dimensions of national culture proposed by
and the ability to tolerate flaws in the service’’ (p. 348). Following Hofstede et al. [19] are power distance, uncertainty avoidance,
this approach, we define intimacy as the feeling of closeness and individualism, masculinity, long-term orientation, and indulgence.
emotional bonding involving intense liking and moral support While the first four dimensions constitute the original Hofstede
from social network friends, and the ability to tolerate social dimensions of national culture, the last two have been suggested
network friends’ mistakes. In this paper, we use ‘intimacy’ and by Michael Bond and Michael Minkov, respectively.
‘closeness’ interchangeably. This research focuses on only two dimensions: individualism
Marsden and Campbell [50] suggest that the best indicators and uncertainty avoidance, which are the most relevant to this
of the strength of a bond with another person are those having study. The definitions of these two dimensions [18] are as follows:
to do with time spent together and the depth of the relationship. uncertainty avoidance is the degree to which the members of a
Consistent with this idea, Brown and Reingen [7] define the culture feel threatened by uncertain or unknown situations, and
strength of ties as the familiarity of one person with another. individualism is the extent to which the ties between individuals
Familiarity is described as the ‘‘feeling of the understanding of are loose.
an entity, often based on previous interactions, experience, and As highlighted in the research [18,19], the national cultural
learning of the what, who, how, and when of what is happening’’ dimensions (with scores ranging from 1 to 120) differ and are
[41]. Based on this description, we associate the strength of ties, clustered quite obviously according to the different regions to
or bonds, with familiarity, and describe familiarity as the feeling which countries belong, such as Latin America, East Asia, Nordic
of understanding of one’s social network friends. This feeling is Europe, Southern Europe, the Middle East, and Africa. This study
often based on previous interactions, experiences, and learning focuses on the regional level, in particular the Latin America
about the what, who, whom, how, when, and why of what is region and East Asia region, because of the (1) research resources
happening. constraint and the infeasibility of collecting data from many
countries; (2) the lack of information on all cultural dimension
2.2.2. Trust transference theory scores for most Latin American countries, such as Nicaragua,
Trust is a critical component in online purchase intentions [35], Honduras and Paraguay; and (3) the proximity of cultural
as a consumer is unable to access and evaluate a real product dimension scores for some countries (see Table 1), such as
online before purchasing it. It has also been studied in the online Taiwan and Thailand scores of 69 and 64 for uncertainty
contexts of product recommendation agents [76], mobile com- avoidance and 17 and 20 for individualism, respectively. In
merce [75], government services [71], and Internet-based interor- addition, the absolute value of the CMSI difference, suggested by
ganizational systems [39]. [68], within the same region, for instance between Taiwan and
Prior studies show that trust may be transferred from one Thailand, is very small (i.e., 8), unlike the absolute value of the
source to another. For example, trust in an organization is CMSI difference between Latin America and East Asia (195–
transferable to trust in its members, trust in an individual may 148 = 47). As a result, the subsequent section builds on the
be transferred to trust in another individual, and trust may be hypotheses from the regional level.
transferred between contexts. Trust transfer occurs when ‘‘the
unknown target [is] being perceived as related to the source of the 3. Research model and hypotheses
transferred trust’’ ([67], p. 6). The perception of relatedness occurs
based on the similarity, proximity, and common fate of the entities Fig. 1 depicts the research model and the associated hypothe-
from/to which trust is transferred [8]. Similarity describes the ses. The definition of the constructs proposed in the hypotheses
entities’ degree of sameness, whereas proximity implies the degree and the references to the constructs (with their measurement
of closeness. Common fate refers to the perception that the entities items) are shown in Table 2.
(such as a social community’s members) are moving in the same
direction. In the context of members of a group, relatedness may 3.1. Social interactions
also be influenced by an individual member’s behavior [77] and the
type of interaction involved such as forming a business partnership Social interactions may breed closeness and familiarity. One
or a social network community [45]. study on continuance intention in the context of web-based
On a social commerce site, prospective consumers make buying services revealed that closeness and familiarity affect users’
decisions based on the advice of friends and family in a social continuance intention [41]. In the context of social promotion
network community that they know or trust [42]. Based on the sites, both cognitive and affective involvements, which are social
idea of relatedness, above, trust in a social network community
may be expected to be transferable to other related sources, i.e.,
Table 1
trust in other firms in the community. The prospective consumers Scores for the two cultural dimensions under examination of the two selected
could believe that the online environment is safe and well regional areas [19].
managed and that everyone there, including the sellers, is
Cultural dimension Score (1–120)
trustworthy. A user will have this belief happen when she
perceives that other firms in the community are related to her Latin America East Asia
close community, in such as way that other firms in the community Guatemala, etc. Taiwan Thailand Average
(1) are using a social network service for the same purpose as any Uncertainty avoidance (UAI) 101 69 64 66.5
other user, (2) closely fit a user’s daily life, such that they become Individualism (IDV) 6 17 20 18.5
an important part of the social network community that she CMSIa 195 152 144 148
interacts with daily, and (3) share the same future goal and a
CMSI–computer-based media support index, computed based on adding UAI to
direction as user. (100-IDV), refer to [67] for more details.
612 C.-S.P.P. Ng / Information & Management 50 (2013) 609–620
Table 2 H3. The presence of trust in a social network community will have
Social commerce intention to purchase constructs. a positive influence on the intention to purchase.
Construct Definition Trust may be developed online [11], on social network sites. Prior
Closeness (CLO) The feeling of closeness and emotional bonding, study in the e-commerce environment reveals an association
involving intense liking and moral support between social interactions and trust [14]. In another online context,
from social network friends, and the ability to i.e., in a C2C environment, a similar finding is found. In particular,
tolerate social network friends’ mistakes.
Familiarity (FAM) The feeling of understanding between social
[10] discover that social interactions among members in a C2C
network friends, often based on previous environment increase the level of trust among its members. The
interactions, experiences, and learning of the study further suggests that trust in the community leads to trust in
what, who, whom, how, when, and why of the C2C platform, which includes sellers. We argue that one’s
what is happening.
interaction on a social network site leads to trust in one’s close
Trust in social network The sense of protection, care, and perception
community (TCO) of reliability from the messages, feedback, or community (i.e., friends), and trust in one’s close community leads to
recommendations from other friends on a trust in the entire social network community. Therefore, having
social network site. more social interactions with members in a social network
Culture The degree of national cultural variation in community, leads to greater trust in that community. This
different countries, from the perspective of
the two relevant dimensions of uncertainty
relationship holds because closeness and familiarity help users to
avoidance and individualism; stems from a feel more secure with their peers in an online community. Likewise,
respondent’s region or country of origin. social interactions in a social network community will influence
Intention to The perceptions and intentions to accept a one’s trust in the community itself, as member interactions foster a
purchase (INT) friend’s product recommendation or review
sense of belonging, involvement, and commitment. As such
when purchasing a product on a social
commerce site. reassurances evolve, users tend to believe that other community
members will not deliberately cause harm to a peer because, trust
has been established. As a result, closeness and familiarity will
increase a user’s trust in the social network community. Therefore,
interactions, have been shown to increase social networking users’
purchase intention for deals recommended by online social H4. A stronger the feeling of closeness to a social network commu-
network friends [65]. It is also evident that greater familiarity nity, has a greater influence on the level of trust in that community.
between the information receiver and sender, implies greater
intention to buy the product or service recommended by the H5. A stronger familiarity with a social network community, has a
information sender [47]. These findings suggest that the intention greater its influence on the level of trust in that community.
to purchase is directly motivated by the social interactions Prior studies also have demonstrated that trust plays a mediating
between users and a social network community. A user who has role in the relationship between familiarity and the perception of
more social interactions with others in the social network receiving useful knowledge from others [43]. That is, trust affects the
community, has a stronger feeling of closeness and familiarity perception of the usefulness of information received from a social
with others. Therefore, it is more likely that this user’s intention to network community. Likewise, a higher level of trust in a social
purchase will be influenced by the community. Based on this line of network community fosters a stronger effect on a user’s intention to
argument, we hypothesize that: purchase from a social commerce site. Still, the degree of trust in a
social network community is founded on social interactions. If trust
H1. A stronger feeling of closeness to a social network community,
exists in a social network community, information receivers will
implies a greater influence of the community on the intention to
have a stronger intention to purchase from social commerce sites
purchase.
recommended by fellow community members, with whom they are
H2. A stronger familiarity with a social network community, intimate and familiar. We propose the following:
implies a greater influence of the community on the intention
H6. Trust in a social network community plays a mediating role in
to purchase.
the relationship between closeness and the intention to purchase
from a social commerce site.
3.2. Trust in the social network community
H7. Trust in a social network community plays a mediating role in
Trust is one of the key elements in social capital [54] and is an the relationship between familiarity and the intention to purchase
asset rooted in social relationships [29]. A study of virtual from a social commerce site.
C.-S.P.P. Ng / Information & Management 50 (2013) 609–620 613
Table 3
Mean, standard deviation and the reliability tests for the constructs.
percent - Latin America). Half of the East Asian region’s model fit with normalized x2 = 59.87, df = 44, RMSEA = .036,
respondents were employed, whereas slightly more than half GFI = .97, AGFI = .94, NFI = .98, CFI = .99 and P-value = .056.
(57 percent) of the Latin American respondents were college Table 3 shows that the factor loading of all construct items
students. A more detailed summary of the respondents’ char- ranges from 0.74 to 0.98. The composite reliability of the survey
acteristics is provided in Appendix A2. items intended to measure the same construct are higher than 0.7
for all constructs (see Table 3). The average variance extracted
(AVE) for all constructs are higher than 0.50 (Table 3), and the
5. Results and analysis
square roots of the AVEs are greater in all cases than the off-
diagonal elements in their corresponding row and columns
5.1. Validity and reliability assessment
(Table 4); these facts confirm the convergent and discriminant
validity of the constructs and the measurement items used in the
The Covariance Based Structural Equation Modeling (CBSEM)
survey instrument [13]. In addition, the correlation between latent
approach is adopted in this study as it serves the purpose of this
constructs does not exceed 0.70 (Table 4), which further signals
study, i.e., theory testing and development [17]. For this purpose,
measure distinctness [58].
the Lisrel 9.1 software was utilized in this study.
This study, consisting of 284 responses, meets the minimum
5.2. The structural model
sample size requirement, also known as the rule of ten [17]. That
is, the sample size is larger than ten times the largest number of
The beta path coefficients for closeness and familiarity to
structural paths (three) directed at a particular latent construct
intention to purchase (in Fig. 2A) are positive (in the expected
in the structural model. To reduce the potential for survey
direction) and statistically significant. Therefore, hypotheses H1
evaluation apprehension and to increase the validity of survey
and H2 are supported. Similarly, the beta path coefficient for trust
responses, procedural remedies to control for common method
in the social network community to the intention to purchase (in
bias as suggested by Podsakoff et al. [59] are considered in this
Fig. 2B) is also positive and statistically significant, supporting
study. These remedies include protecting respondent anonymity,
hypothesis H3.
ensuring data confidentiality, providing concise and clear
Both familiarity and closeness in Fig. 2B are significant in
questions, and avoiding double-barreled questions. To test for
predicting the level of trust in a social network community and are
the problem of common method bias in the collected data,
able to explain 56 percent of the variance in trust in the social
Harman’s single factor test [59] is conducted. The test results
network community examined. These findings support hypotheses
confirm that the common method bias is unlikely to be a serious
H4 and H5. In overall, the entire model in Fig. 2B explains 33
problem in this study.
percent of the variance exhibited in the intention to purchase
The two-step approach suggested by [2] is applied here to test through social commerce in this sample.
the validity of the measurement model and then to assess the In testing the mediation effect of trust in a social community,
model fits of the structural models. To do so, confirmatory factor the three conditions suggested by [34] and colleagues [4,27] have
analysis (CFA) is first performed to test the unidimensionality, been examined. The results in Fig. 2A and B show that the three
convergent validity, internal consistency reliability, and the conditions for testing the mediation effect of trust in a social
discriminant validity of the measurement items used herein. This network community on the relationship between closeness (and
analysis is conducted by creating a measurement model based on familiarity) and the intention to purchase from a social commerce
the latent variables used in the research model. Prior to CFA, item site are all met. Closeness, familiarity, and trust in a social network
CLO3 is dropped to satisfy the requirement for face validity. After
CFA, each item’s unidimensionality is assessed by evaluating its
shared residual variance and checking the modification index for Table 4
theta-epsilon with other items. The pairs of items with standard- Discriminant validity (intercorrelations) of variable constructs.
(2A) Without ‘trust in social network community’ (2B) With ‘trust in social network community’
0.30*** 0.17 n.s.
Fig. 2. The initial structural model results for the whole sample.
Table 5 measurement parameters are the same across all groups and
Sobel significance test results for indirect effects.
whether the same construct is measured in all groups. A Chi-
Path coefficient Standard Error Z-values square difference test was performed for this purpose. The results
Closeness for the measurement model are shown in Appendix A3. The large
Direct effect (c1) 0.171 0.0992 1.721 P-value suggests that there is sufficient evidence to accept the null
Indirect effect (Sobel Test) hypothesis that the factor loadings of the measurement model are
CLO- > TCO (a1) 0.437 0.0901 4.853 invariant across the two cultural groups.
TCO- > INT (b1) 0.475 0.119 3.999
Fig. 3 illustrates the structural model results for both the East
Sobel Z-value 3.082 (significant at P < 0.01)
Familiarity Asia and Latin America regions. In comparing the model results
Direct effect (c2) 0.0422 0.0875 -0.482 between these two groups, it was found that only the relationship
Indirect effect (Sobel Test) between closeness and the intention to purchase was significant
FAM->TCO (a2) 0.387 0.0858 4.514
within the East Asia group, whereas only familiarity was significant
TCO->INT (b2) 0.475 0.119 3.999
Sobel Z-value 2.963 (significant at P < 0.01)
in predicting the intention to purchase within the Latin America
group. A Chi-square difference test was conducted to test whether
these two groups have equal parameter estimates in the path
model. The results in Table 6 show that the Chi-square difference
community (the mediator) significantly predict the intention to was Dx2 = 13.41, df = 6, P = .037. This finding indicates that
purchase; see Fig. 2A and B. However, the direct effects of closeness differences in parameter estimates exist between the two model
and familiarity on the intention to purchase are no longer analyses. However, H8 was supported only for the relationship
significant after controlling for the mediator. The results of the between familiarity and intention to purchase but not for the
Sobel significance test, referring to [4], for the indirect effects of relationship between closeness and intention to purchase because
the two independent variables on the dependent variable via the this relationship was insignificant within the Latin America group.
mediator are all significant at P < 0.01, as shown in Table 5. In The moderated mediation tested in this study was conducted by
addition, complete mediation occurs in the direct effects of examining the mediation effects and then the moderating effect.
closeness and familiarity on the intention to purchase after Similarly, to test the mediation effect of trust in a social community
controlling for the mediator. Therefore, H6 and H7 are supported. on the two different regions, the three required conditions were
Similar to the study by [67], cultural factors were neither met as shown in Fig. 4A and B. The mediation test of trust in a social
collected nor measured in our survey instrument. Therefore, the network community, using the Sobel significance test, on the
interaction terms between culture and other independent vari- relationships (1) between closeness and the intention to purchase
ables could not be computed and included in the measurement is significant at P < 0.05, with a Z-value of 2.342, for the East Asia
model. In this situation, subgroup analysis is appropriate for group, and (2) the relationship between familiarity and the
testing the moderation strength and is analyzed using Lisrel [4]. intention to purchase is significant at P < 0.05, with a Z-value of
To justify subgroup analysis and analysis of moderating effects 2.077, for the Latin America group. Partial mediation was observed
in different groups, testing the measurement model invariance is as the predictive utility of closeness was reduced from beta = 0.41,
required [63]. This procedure is followed to determine whether the P < 0.001 to beta = 0.28, P < 0.01, and there was a drop in the
Closeness Closeness
Intention to Intention to
purchase in soc. purchase in soc.
comm. comm.
(R2=.23) (R2=.10)
Familiarity Familiarity
Fig. 3. Structural model results of social interactions for the two regions.
616 C.-S.P.P. Ng / Information & Management 50 (2013) 609–620
Table 6 Table 7
Parameter estimates for the two groups – Chi-square difference test results. Mediation test of TCO for East Asia and Latin America.
Equal parameter estimates (H0) 148.89 39 0.0001 Base Constraint model Base Constraint model
Unequal parameter estimates (H1) 135.48 33 0.0001
CLO->TCO 0.417*** 0.466*** 0.206 0.205
Difference 13.41 6 0.0370
FAM->TCO 0.350*** 0.302** 0.634*** 0.635***
CLO->INT 0.284** (Constrained) NA NA
FAM->INT NA NA 0.006 (Constrained)
significance of the direct effects of closeness on the intention to TCO->INT 0.313** 0.603*** 0.464* 0.470***
x2 66.26 73.94 37.81 37.81
purchase after controlling for the mediator. To assess the statistical
DF 22 23 22 23
conclusion validity of the type of mediation, the significance of CFI 0.973 0.968 0.972 0.974
indirect effects is further examined [48]. This assessment was RMSEA 0.107 0.112 0.082 0.077
accomplished by comparing the constraint model (where the Dx2 – 7.68 – 0
coefficient of the direct effect path is constrained to ‘zero’) with the P-value – 0.0056a – 1b
base model (which includes all the direct and indirect paths). The NA – not applicable for testing the mediating role of TCO as the paths (FAM->TCO in
addition of this constraint (CLO->TCO set to ‘zero’) in the East Asia the East Asia and CLO->TCO in the Latin America) are not significant as indicated in
Fig. 3A and B respectively.
group significantly deteriorates the model (Dx2 = 7.68, df = 1,
(Constrained) – the path is set to ‘zero’.
P = 0.0056) compared to the base model, see Table 7. This finding a
Reject H0: the path coefficient of CLO- > INT in the base model and the
indicates that the indirect effects are significant and that the direct constraint model is the same.
b
effect remained significant even in the presence of the mediator. Accept H0: the path coefficient of FAM- > INT in the base model and the
This supports the partial mediation model. constraint model is the same.
*
Significant at P < 0.05
In contrast, the mediation test effect of trust in a social **
Significant at P < 0.01.
community between familiarity and the intention to purchase, ***
Significant at P < 0.001.
shown in Fig. 4B, indicates that complete mediation occurred. This
finding exists because the previously significant relationship
between familiarity and the intention to purchase becomes Table 8
Mediation test–Between the two group comparisons.
insignificant after controlling for trust in a social network
community. The model comparison between the constraint model Modela Constraint x2 DF Dx2 P-value RMSEA
and base model in the Latin America group showed that the Default (No structural 64.82 50 0.046
addition of this constraint (FAM->TCO sets to ‘zero’) did not constraint)
significantly deteriorate the model (Dx2 = 0, df = 1, P = 1) com- Model A CLO->INT 99.08 51 34.26 0.0001 0.084
pared to the base model as shown in Table 7. This finding proves Model B FAM->INT 112.64 51 47.82 0.0001 0.093
a
that adding the FAM->TCO path does not provide any additional Measurement model was constrained to be equal across the two cultural groups
information. Therefore, trust in a social network community fully (East Asia and Latin America) in all the models
mediates the relationship between familiarity and the intention to
purchase in the Latin America group.
To compare these results across subgroups in a more rigorous imposed [64]. On the other hand, the constraint model has an
way, between-group structural equation model analyses; see [60], additional equality constraint of setting the path coefficient (CLO-
were conducted in Table 8. These analyses were accomplished by >INT or FAM->INT) to be equal across the two groups in models A
comparing the constraint model with the default model. In the and B, respectively. The Dx2 values in models A and B in Table 8 were
default model (as presented in Fig. 2B), all the structural parameters significant (model A: Dx2 = 34.26, df = 1, P = .0001; model B:
were allowed to vary freely across the East Asia and Latin America Dx2 = 47.82, df = 1, P = .0001). These showed deterioration in model
groups, but the measurement model equivalence constraints were fit, indicating that the paths (CLO->INT in model A and FAM->INT in
Fig. 4. Structural model results of the mediating effect of TCO in the two regions.
C.-S.P.P. Ng / Information & Management 50 (2013) 609–620 617
Table 9
Hypotheses conclusions.
H1: A stronger feeling of closeness to a social network community increases the Yes
community’s influence on the intention to purchase.
H2: A stronger familiarity with a social network community increases the Yes
community’s influence on the intention to purchase
H3: Presence of trust in a social network community has a positive influence Yes
on the intention to purchase.
H4: A stronger feeling of closeness to a social network community has a stronger Yes
influence on the level of trust in that community.
H5: A stronger familiarity with a social network community has a stronger Yes
influence on the level of trust in that community.
H6: Trust in a social network community plays a mediating role in the Yes – complete mediation
relationship between closeness and the intention to purchase from a
social commerce site.
H7: Trust in a social network community plays a mediating role in the Yes – complete mediation
relationship between familiarity and the intention to purchase from a
social commerce site.
H8: Culture, as differentiated by the dimension of collectivism vs. individualism, Yes – moderation occurs
moderates the relationship between social interactions (for both closeness and (But, only for FAM->INT, the effect is found to be
familiarity) and the intention to purchase from a social commerce site such stronger in the LA region)
that the effect is stronger in the Latin America region than the East Asia region
H9: Culture, as differentiated by the uncertainty avoidance dimension, will Inconclusive – as no comparable relationship can be
moderate the mediating role of trust in a social network community on the made between the two regions from our sample data.
relationship between social interaction (i.e., for both closeness and (However, complete mediation of TCO happens within
familiarity) and the intention to purchase from a social commerce site the LA region for FAM->INT, and partial mediation
such that the effect is significantly stronger in the Latin America region occurs within the EA region for CLO->INT.)
than in the East Asia region.
model B) were not equal in the two regions [64]. These results social commerce site – i.e., a partial mediation of closeness’s direct
indicate that the strengths of the mediator role of trust in a social effect in the East Asia region and a complete mediation of
network community (TCO) in these two relationships (CLO->INT familiarity’s direct effect in the Latin America region. This finding
and FAM->INT) vary significantly across the two regional settings. In implies that the mediating effect of trust in a social network
this case, the effect of the mediator is stronger in the Latin America community is relatively stronger within the LA region.
group as complete mediation occurs, whereas partial mediation
occurs in the East Asia group. 6.2. Theoretical contribution
6. Conclusions and implications This study shows that trust transference theory helps in to
explain social commerce purchase intention. It is clear from the
Table 9 presents the outcomes of the hypotheses tested in this results that one third of the variations in the intention to purchase
study. from a social commerce site observed in our sample are based on
trust in a social network community. This finding shows that trust in
6.1. Conclusions other firms in a social network community may be transferred from
trust in one’s close social network community. This finding is
The results from the sample in this study suggest that closeness consistent with that of [10]; whose study shows that mutual trust
and familiarity (social interactions) are good predictors of trust in a between members boosts their trust in the C2C platform provider.
social network community. A total of 56% of the variation in trust in This finding highlights the importance of building up trust in a social
a social network community may be explained by a user’s network community to boost users’ intentions to purchase from a
closeness and familiarity with a social network community social commerce site. In addition, this study has extended the trust
(Fig. 2B). Furthermore, based on our whole sample, trust in a transference theory by suggesting that culture somehow plays a
social network community is a salient factor influencing the moderating role in the transfer of trust in one’s close social network
intention to purchase on social commerce websites. community to trust other firms in that social network community.
In comparison to closeness, familiarity is a weaker measure of This study has also contributed to research on purchase
social impact (see Fig. 2A). Our conclusion is consistent with that of intentions via social commerce in the following ways: (1) confirming
[41], who also argued that closeness/intimacy is a purer affective that culture plays a moderating role in predicting purchase
concept and has a greater impact on online users’ behavior or intentions through the social commerce context; (2) showing that
compared to familiarity. both the closeness and familiarity of members on a social network
In addition, this study verifies that trust in a social networking site are important in building trust in a social network community,
community plays a mediating role in the relationship between social and (3) showing that trust in a social network community mediates
interactions and the intention to purchase from a social commerce the relationship between social interactions and the intention to
site. Whereas closeness was significant in the East Asia group, purchase, and this mediation is conditional on culture.
familiarity was significant in the Latin America group in predicting
users’ purchase intention on social commerce sites. Our results also 6.3. Implications for practice
provide evidence that (1) the differences in culture between
regions moderate the relationship between social interaction and Social media brings businesses closer to their customers. A
the intention to purchase from a social commerce site and (2) the study conducted by [16] suggests that ‘‘social networks are the
differences in culture between regions moderate the mediating role most prominent feature in predicting how consumers choose their
of trust in a social network community differently in the relationship transaction partners.’’ A better understanding of the characteristics
between social interactions and the intention to purchase from a of social commerce users and the impacts of social interactions on
618 C.-S.P.P. Ng / Information & Management 50 (2013) 609–620
social commerce purchasing decisions, may help online companies 6.4. Implications for future research directions and limitations
to better plan and target their marketing strategies at a predefined
segment of customers on a predetermined social network site. The use of Holfstede’s cultural dimensions in studying cross-
According to a global study [69], if social interactions (which regional cultural issues may face some criticisms [25]. Wu [80]
may create closeness and familiarity) on a social networking site emphasizes that values in a specific culture change and evolve over
and trust in the community are properly managed, a social time, as they may be influenced by political changes, social factors
networking site can also serve as a venue for (1) retaining and and increasingly integrated global economies. As a result,
increasing an online company’s customer loyalty (as such sites purchasers’ behavior will change over time as well. Nevertheless,
facilitate a direct and open point of contact with customers), (2) this study may serve as a foundation for comparative studies in
obtaining more customer feedback and electronic word-of-mouth future research, for example, by comparing the relative relevance
advertisings, and (3) managing enterprise knowledge. Our study and robustness of Holfstede’s cultural dimensions with the
has proven that social interactions with a social network recently developed GLOBE approach [20] for measuring cultural
community may result in a stronger sense of trust in the values. Moreover, future studies may repeat this study’s research
community and may drive the intention to purchase from a social model under different cultural settings such as examining Western
commerce site in that community. countries versus Middle Eastern countries or under different
Online and offline companies must be open to and aware of national economic environments such as developed versus
external changes that are occurring worldwide with regard to developing countries.
managing brand awareness and customer relationship management In addition, this study considers social capital factors only.
to remain competitive [56]. Companies may incorporate and apply Consequently, other factors related to social commerce systems
the right social media strategy by modularizing this innovative such as system quality, information quality and user-friendly
business strategy in their organizational routines [55] to shape interfaces (cf., [61]), after-sales service, and operational environ-
organizational rhetorical practices [22] or by adopting a project ments (e.g., reliability and availability services provided by the
evaluation model suggested in the research [57] to manage their postal system in a country) may merit further investigation. In
organizational commitments for social media strategy. addition, other future studies may consider or control payment
Similar to other popular online companies such as Google and behavior, examine macroeconomic differences between different
Yahoo, social networking sites such as Facebook that are free of world regions (e.g., Internet infrastructure and legal system), and
charge allow companies to attract a high volume of users and study differences at the individual level, such as an individual’s
visitors. Setting up a store to sell products on a social networking purchasing power and habits, Internet usage behavior, prior
site may be accomplished at almost no cost, provides unlimited purchasing experience, and interest in a product as well as a
access to a large potential base of customers, and may increase an product’s price. In addition, trust in a social network community
online company’s brand equity. However, a firm understanding of may change over time; therefore, a longitudinal study may be
the importance of social interactions and of the characteristics of a beneficial for a deeper understanding of the dynamics of trust
particular customer segment is required to guarantee success in transfers occurring in a social commerce environment.
social commerce. For instance, our study has shown that both
closeness and trust in a social network community are significant Acknowledgments
predictors of the intention to purchase on social commerce sites in
the East Asia region (Fig. 4A) but that only trust in a social network This research was supported by the National Science Council of
community is a significant predictor for the Latin America region Taiwan, grant NSC 101-2410-H-155-005 and NSC 99-2410-H-155-
(Fig. 4B). These findings suggest that, if social commerce requires 031. The author is indebted to the guest editor, Yunjie (Calvin) Xu, and
social interactions among the members in its community, social reviewers for their constructive comments and suggestions, which
commerce market entry or penetration in East Asian countries may have greatly improved the quality of this paper. Finally, the author
have relatively fewer barriers and has a greater potential for would like to thank Danny, JJ, Alex and Anurag for the assistance in
success than in Latin American countries. translating and/or sending out the survey to the respondents.
Frequency Percent
Country region
Latin American countries Guatemala 46 16
(n = 108) Nicaragua 18 6
Honduras 13 5
Other 31 11
East Asian countries Taiwan 113 46
(n = 176) Thailand 59 24
Other 4 1
Interaction level return rate Low 134/402 (sent), 134/246 (returned) 33, 54
Average 68/132, 68/246 52, 28
High 44/98, 44/246 45, 18
Social Commerce Experience 49/246 20
East Asia 32/176 18
Latin America 24/108 22
Age (for both mode and median) East Asia 23–32 65
Latin America 23–32 75
Gender Male 130/246 53
Female 116/246 47
Education level (mode) East Asia Bachelor Degree 46
Latin America Bachelor Degree 49
Employment (mode) East Asia Employed 50
Latin America College Student 57
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