Towards building a value co-creation circle in social commerce

Abstract

The rise of social commerce has brought several new challenges for firms and reshaped the way people purchase products and services. Firms are struggling to co-create value with customers to identify their needs and offer innovative products. To address these challenges, this study proposes a value co-creation circle and explores the key factors for developing a successful value co-creation circle on social commerce platforms. A case study of a taxi company in Taiwan was conducted. Data was collected from face-to-face interviews with the managers and analysed using Google Analytics. The proposed value co-creation circle not only creates benefits from network externality by the growth in membership, but also enhances service quality in the social commerce platform. This study explores a new perspective of the value co-creation circle in the social commerce environment that allows practitioners to develop a value circulation by network externality and co-create value with customers.