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Imitation-related performance outcomes in social trading: A configurational approach

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  • Berger, Elisabeth S.C.
  • Wenzel, Matthias
  • Wohlgemuth, Veit

Abstract

This paper draws on the resource-based view and risk-related research to examine imitation-related configurations that explain performance outcomes in social trading. The study applies qualitative comparative analysis to examine 16,964 investment observations at eToro, the world's largest social trading platform. The results show that the experience and the imitation of traders, in combination with a low risk level, equifinally explain similar performance outcomes. The findings contribute to the literature on social trading and the resource-based view by exploring imitation as a valuable strategy, conceptualizing and empirically validating the role of risk in social trading, and drawing on qualitative comparative analysis to develop a more complex configurational understanding of the examined phenomenon.

Suggested Citation

  • Berger, Elisabeth S.C. & Wenzel, Matthias & Wohlgemuth, Veit, 2018. "Imitation-related performance outcomes in social trading: A configurational approach," Journal of Business Research, Elsevier, vol. 89(C), pages 322-327.
    • Handle: RePEc:eee:jbrese:v:89:y:2018:i:c:p:322-327
    DOI: 10.1016/j.jbusres.2017.12.016
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    1. Scheckenbach, Isabel & Wimmer, Maximilian & Dorfleitner, Gregor, 2021. "The higher you fly, the harder you try not to fall: An analysis of the risk taking behavior in social trading," The Quarterly Review of Economics and Finance, Elsevier, vol. 82(C), pages 239-259.
    2. Schneider, Julian & Oehler, Andreas, 2021. "Competition for visibility: When do (FX) signal providers employ lotteries?," International Review of Financial Analysis, Elsevier, vol. 78(C).
    3. Kromidha, Endrit & Li, Matthew C., 2019. "Determinants of leadership in online social trading: A signaling theory perspective," Journal of Business Research, Elsevier, vol. 97(C), pages 184-197.
    4. Gong, Qingbin & Diao, Xundi, 2023. "The impacts of investor network and herd behavior on market stability: Social learning, network structure, and heterogeneity," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1388-1398.
    5. Andreas Oehler & Julian Schneider, 2023. "Social trading: do signal providers trigger gambling?," Review of Managerial Science, Springer, vol. 17(4), pages 1269-1331, May.
    6. Riccardo Reith & Maximilian Fischer & Bettina Lis, 2020. "Explaining the intention to use social trading platforms: an empirical investigation," Journal of Business Economics, Springer, vol. 90(3), pages 427-460, April.
    7. Minh-Lý Liêu, 2021. "Peer attention and the disposition effect," Working Papers Dissertations 81, Paderborn University, Faculty of Business Administration and Economics.

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