Applying Social Exchange Theory to Value Co-Creation Frame: Does it Leads to Customer Loyalty?

Abstract

The emergence of E-commerce has brought many advantages, especially in economic development. With the continuously significant growth of E-commerce users, it is crucial for e-commerce platforms to sustain their business. Applying value co-creation is beneficial for e-commerce to gain a competitive advantage that leads to customer loyalty. This study aims to seek the role of value-co creation behaviour as a mediating variable between the key construct in Social Exchange Theory (satisfaction and trust) and customer loyalty. The research uses SEM-PLS to examine the model and the result indicates value co-creation behaviour influences customer loyalty positively. Hence, it is important for the e-commerce platform to gain customer trust and satisfaction to enhance their willingness to value cocreation behaviour, leading to customer loyalty.