UNDERSTANDING ROLES OF INSTITUTION BASED TRUST AND SOCIAL INTERACTIONS IN SOCIAL COMMERCE ENVIRONMENT

Abstract

ABSTRACT User-generated content is a two-edged sword in that it can both build and destroy trust in social commerce Web sites. One of the most important ingredients in the social commerce environment is institutional trust. The purpose of this study was to investigate the relationships among institution-based trust, social interactions (content, positive valence, and negative valence), purchase intentions, purchase, and post-purchase behavior of consumers in a social commerce environment. With the help of 227 responses, the proposed research model was validated using structural equation modeling and binary logistic regression analysis techniques. The study’s findings confirmed significant effects of social interactions (content, positive valence, and negative valence) on consumers’ purchase intentions, increasing the likelihood of actual purchasing and sharing shopping experiences with other customers in a social commerce environment. Furthermore, institutional trust was found to be important in influencing content, positive valence, and negative valence. The academic and managerial implications are extensively discussed.