Generation-Y shopping: the impact of network externalities and trust on adoption of social commerce

Many commercial companies are keen to exploit the rapid transformation of electronic commerce into social commerce. Social commerce is increasingly being observed in the purchasing behaviour of college-aged Generation-Y consumers. Drawing on theory of reasoned action, this study examines the strength and significance of trust and network externalities on social commerce adoption. By linking security, situational normality, vendor familiarity and structural assurance as determinants of trust, we propose a model of an individual's intention to engage in social commerce. Our model adds network externalities as antecedents influencing an individual's normative beliefs. Our findings reveal that security, situational normality and structural assurance have positive effect on trust. Number of peers has a positive relationship with normative beliefs. Both trust and normative beliefs are inextricably linked to behavioural intention. Our results provide insight into the role of trust and network externalities on social commerce adoption, thereby allowing social commerce providers to develop innovative strategies to compete in the social commerce industry.

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