User retention in sharing economy platforms: an integrated model of social exchange theory and network externalities
Vol 9, Issue 8, 2024, Article identifier:
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Abstract
This study investigates user retention in sharing economy platforms by integrating Social Exchange Theory with network externalities. A comprehensive model is developed to examine the relationships between perceived benefits, trust, network size, and user retention intention. Data collected from 1,200 users across various sharing economy sectors were analyzed using structural equation modeling. Results indicate that perceived benefits and trust positively influence user retention intention, while network size moderates these relationships. Furthermore, network size positively affects both perceived benefits and trust. The study reveals the complex interplay between individual-level factors and platform-level network effects in shaping user retention behavior. Theoretical contributions include the extension of Social Exchange Theory in digital platforms and the bridging of network theory with trust research in sharing economies. Practical implications for platform managers emphasize the importance of enhancing value propositions, building trust mechanisms, and implementing effective growth strategies. The research also highlights the self-reinforcing nature of network effects in user retention. Limitations of the cross-sectional design are acknowledged, and future research directions are proposed, including longitudinal studies, sector-specific analyses, and investigations into potential negative network effects. This study advances our understanding of user retention dynamics in the rapidly evolving sharing economy landscape, offering insights for both scholars and practitioners in this field.
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DOI: https://doi.org/10.59429/esp.v9i8.2993
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