IDEAS home Printed from https://ideas.repec.org/a/eee/ininma/v33y2013i3p539-552.html
   My bibliography  Save this article

Exploring individuals’ subjective well-being and loyalty towards social network sites from the perspective of network externalities: The Facebook case

Author

Listed:
  • Chiu, Chao-Min
  • Cheng, Hsiang-Lan
  • Huang, Hsin-Yi
  • Chen, Chieh-Fan

Abstract

This study aims to investigate users’ subjective well-being and loyalty towards social network sites (SNSs). Despite the growing role of network externalities in SNS continuance decisions, the SNS usage literature has paid scant attention to the relationship between network externalities, SNS identification, and users’ subjective well-being. In this study, we identify four components of network externalities: perceived network size, external prestige, compatibility, and complementarity. In the research model, both network size and external prestige are hypothesized positively to affect SNS identification. Perceived compatibility and perceived complementarity are hypothesized positively to affect user satisfaction. Satisfaction and SNS identification are hypothesized positively to affect user subjective well-being and loyalty towards the SNS. Users’ subjective well-being is hypothesized positively to affect their loyalty towards the SNS. Data collected from 615 valid users of Facebook provide strong support for most of these hypotheses. The findings indicate that perceived network size negatively affects users’ SNS identifications. Other components of network externalities have positive effects on SNS identification and satisfaction, which in turn have positive effects on users’ subjective well-being and loyalty towards SNS. Implications for theory and practice and suggestions for future research are also discussed.

Suggested Citation

  • Chiu, Chao-Min & Cheng, Hsiang-Lan & Huang, Hsin-Yi & Chen, Chieh-Fan, 2013. "Exploring individuals’ subjective well-being and loyalty towards social network sites from the perspective of network externalities: The Facebook case," International Journal of Information Management, Elsevier, vol. 33(3), pages 539-552.
    • Handle: RePEc:eee:ininma:v:33:y:2013:i:3:p:539-552
    DOI: 10.1016/j.ijinfomgt.2013.01.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0268401213000108
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijinfomgt.2013.01.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yuksel, Atila & Yuksel, Fisun & Bilim, Yasin, 2010. "Destination attachment: Effects on customer satisfaction and cognitive, affective and conative loyalty," Tourism Management, Elsevier, vol. 31(2), pages 274-284.
    2. DeConinck, James B., 2010. "The influence of ethical climate on marketing employees' job attitudes and behaviors," Journal of Business Research, Elsevier, vol. 63(4), pages 384-391, April.
    3. Oliver, Richard L & Swan, John E, 1989. "Equity and Disconfirmation Perceptions as Influences on Merchant and Product Satisfaction," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(3), pages 372-383, December.
    4. Evanschitzky, Heiner & Iyer, Gopalkrishnan R. & Plassmann, Hilke & Niessing, Joerg & Meffert, Heribert, 2006. "The relative strength of affective commitment in securing loyalty in service relationships," Journal of Business Research, Elsevier, vol. 59(12), pages 1207-1213, November.
    5. Neil Gandal, 1994. "Hedonic Price Indexes for Spreadsheets and an Empirical Test for Network Externalities," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 160-170, Spring.
    6. Joo, Young-Hyuck & Kim, Yunsik & Yang, Suk-Joon, 2011. "Valuing customers for social network services," Journal of Business Research, Elsevier, vol. 64(11), pages 1239-1244.
    7. Leigh Clark & Sherry Roberts, 2010. "Employer’s Use of Social Networking Sites: A Socially Irresponsible Practice," Journal of Business Ethics, Springer, vol. 95(4), pages 507-525, September.
    8. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    9. Ruth N. Bolton, 1998. "A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction," Marketing Science, INFORMS, vol. 17(1), pages 45-65.
    10. Deng, Zhaohua & Lu, Yaobin & Wei, Kwok Kee & Zhang, Jinlong, 2010. "Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China," International Journal of Information Management, Elsevier, vol. 30(4), pages 289-300.
    11. Wang, Yi-Shun & Wu, Shun-Cheng & Lin, Hsin-Hui & Wang, Yu-Yin, 2011. "The relationship of service failure severity, service recovery justice and perceived switching costs with customer loyalty in the context of e-tailing," International Journal of Information Management, Elsevier, vol. 31(4), pages 350-359.
    12. Nilesh Saraf & Christoph Schlueter Langdon & Sanjay Gosain, 2007. "IS Application Capabilities and Relational Value in Interfirm Partnerships," Information Systems Research, INFORMS, vol. 18(3), pages 320-339, September.
    13. Liu, Chung-Tzer & Guo, Yi Maggie & Lee, Chia-Hui, 2011. "The effects of relationship quality and switching barriers on customer loyalty," International Journal of Information Management, Elsevier, vol. 31(1), pages 71-79.
    14. Pontiggia, Andrea & Virili, Francesco, 2010. "Network effects in technology acceptance: Laboratory experimental evidence," International Journal of Information Management, Elsevier, vol. 30(1), pages 68-77.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mamonov, Stanislav & Benbunan-Fich, Raquel, 2017. "Exploring factors affecting social e-commerce service adoption: The case of Facebook Gifts," International Journal of Information Management, Elsevier, vol. 37(6), pages 590-600.
    2. Lin, Tung-Ching & Huang, Shiu-Li & Hsu, Chieh-Ju, 2015. "A dual-factor model of loyalty to IT product – The case of smartphones," International Journal of Information Management, Elsevier, vol. 35(2), pages 215-228.
    3. Dzandu, Michael D. & Hanu, Charles & Amegbe, Hayford, 2022. "Gamification of mobile money payment for generating customer value in emerging economies: The social impact theory perspective," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    4. Ifinedo, Princely, 2016. "Applying uses and gratifications theory and social influence processes to understand students' pervasive adoption of social networking sites: Perspectives from the Americas," International Journal of Information Management, Elsevier, vol. 36(2), pages 192-206.
    5. Kim, Myung Ja & Lee, Choong-Ki & Preis, Michael W., 2016. "Seniors' loyalty to social network sites: Effects of social capital and attachment," International Journal of Information Management, Elsevier, vol. 36(6), pages 1020-1032.
    6. Mäntymäki, Matti & Riemer, Kai, 2014. "Digital natives in social virtual worlds: A multi-method study of gratifications and social influences in Habbo Hotel," International Journal of Information Management, Elsevier, vol. 34(2), pages 210-220.
    7. Chiu, Chao-Min & Huang, Hsin-Yi & Cheng, Hsiang-Lan & Sun, Pei-Chen, 2015. "Understanding online community citizenship behaviors through social support and social identity," International Journal of Information Management, Elsevier, vol. 35(4), pages 504-519.
    8. Kim, Myung Ja & Hall, C. Michael, 2019. "A hedonic motivation model in virtual reality tourism: Comparing visitors and non-visitors," International Journal of Information Management, Elsevier, vol. 46(C), pages 236-249.
    9. Jung, Yoonhyuk & Pawlowski, Suzanne D. & Kim, Hee-Woong, 2017. "Exploring associations between young adults’ facebook use and psychological well-being: A goal hierarchy approach," International Journal of Information Management, Elsevier, vol. 37(1), pages 1391-1404.
    10. Kang, Weiyao & Shao, Bingjia, 2023. "The impact of voice assistants’ intelligent attributes on consumer well-being: Findings from PLS-SEM and fsQCA," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    11. Faseeh Amin Beig & Mohammad Furqan Khan, 2022. "Romancing the Brands on Social Media," Global Business Review, International Management Institute, vol. 23(3), pages 841-862, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Tung-Ching & Huang, Shiu-Li & Hsu, Chieh-Ju, 2015. "A dual-factor model of loyalty to IT product – The case of smartphones," International Journal of Information Management, Elsevier, vol. 35(2), pages 215-228.
    2. Snellman, Heli, 2006. "Automated teller machine network market structure and cash usage," Bank of Finland Scientific Monographs, Bank of Finland, volume 0, number sm2006_038.
    3. Yi-Nung Yang, 1996. "Network Effects, Pricing Strategies, and Optimal Upgrade Time in Software Provision," Industrial Organization 9602001, University Library of Munich, Germany.
    4. Adriana Burlea-Schiopoiu & Ferjolt Ozuni, 2021. "The Potential of Albanian Tourism Sector," Sustainability, MDPI, vol. 13(7), pages 1-15, April.
    5. Fabrizio, Kira R. & Hawn, Olga, 2013. "Enabling diffusion: How complementary inputs moderate the response to environmental policy," Research Policy, Elsevier, vol. 42(5), pages 1099-1111.
    6. Michal Grajek, 2002. "Identification of Network Externalities in Markets for Non-Durables," CIG Working Papers FS IV 02-32, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    7. Robert J. Kauffman & James McAndrews & Yu-Ming Wang, 2000. "Opening the “Black Box” of Network Externalities in Network Adoption," Information Systems Research, INFORMS, vol. 11(1), pages 61-82, March.
    8. Mitsuru Sunada, 2008. "Network effects with quality change: an empirical analysis of the Japanese mobile telecommunications market, 1995-2001," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 657-674.
    9. Luís Cabral, 2011. "Dynamic Price Competition with Network Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(1), pages 83-111.
    10. Lee, Jiyoon & Ryu, Min Ho & Lee, Daeho, 2019. "A study on the reciprocal relationship between user perception and retailer perception on platform-based mobile payment service," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 7-15.
    11. Xiao Han & Yun Yu & Bin Jia & Zi‐You Gao & Rui Jiang & H. Michael Zhang, 2021. "Coordination Behavior in Mode Choice: Laboratory Study of Equilibrium Transformation and Selection," Production and Operations Management, Production and Operations Management Society, vol. 30(10), pages 3635-3656, October.
    12. Vitor Trindade & Johannes Moenius, 2007. "Networks, Standards and Intellectual Property Rights," Working Papers 0705, Department of Economics, University of Missouri.
    13. Wang, Yi-Shun & Wu, Shun-Cheng & Lin, Hsin-Hui & Wang, Yu-Yin, 2011. "The relationship of service failure severity, service recovery justice and perceived switching costs with customer loyalty in the context of e-tailing," International Journal of Information Management, Elsevier, vol. 31(4), pages 350-359.
    14. Kevin J. Boudreau & Lars Bo Jeppesen & Milan Miric, 2022. "Competing on freemium: Digital competition with network effects," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1374-1401, July.
    15. Schade, Sven & Buxmann, Peter, 2005. "A Prototype to Analyse and Support Standardization Decisions," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35795, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    16. Netsanet Haile & Jorn Altmann, 2013. "Estimating the Value Obtained from Using a Software Service Platform," TEMEP Discussion Papers 2013105, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2013.
    17. Jullien, Bruno & Pavan, Alessandro & Rysman, Marc, 2021. "Two-sided Markets, Pricing, and Network Effects," TSE Working Papers 21-1238, Toulouse School of Economics (TSE).
    18. Merino Troncoso, Carlos, 2012. "Externalidades de red y estimación de una función de demanda [Network externalities and demand estimation]," MPRA Paper 110277, University Library of Munich, Germany.
    19. Haruvy, Ernan & Prasad, Ashutosh, 2005. "Freeware as a competitive deterrent," Information Economics and Policy, Elsevier, vol. 17(4), pages 513-534, October.
    20. Tse, Edison, 2002. "Grabber-holder dynamics and network effects in technology innovation," Journal of Economic Dynamics and Control, Elsevier, vol. 26(9-10), pages 1721-1738, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ininma:v:33:y:2013:i:3:p:539-552. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-information-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.