Enhancing effects of value co-creation in social commerce: insights from network externalities, institution-based trust and resource-based perspectives

Parties in a positive affective state generally boost creativity in social commerce. Superior institution-based trust may enhance multi-sided partners' positive affective reactions that lead to facilitate actively engagement for achieving the benefits of value co-creation. This study develops a conceptual model in which third-party assurance mechanisms and third-party logistics act as moderating constructs for examining the relation between agility and the network effect, both of which affect value co-creation. The results show that institution-based trust operates through the interaction between agility and multi-sided mechanisms in ensuring the value co-creation as it reinforces the network effects in the process. The findings of the study provide practical insights into how online merchants can reinforce the interaction between agility and multi-sided mechanisms so as to provide positive affective state and in turn enhance network effects and value co-creation that improves the social commerce platform as a whole.