A Social Relational Model for Firm-Hosted Virtual Communities: The Role of Firm Support

Since the ease of participation and the usefulness of information provided by online groups continue to proliferate in the World Wide Web, people increasingly participate in different forms of virtual community (i.e. online forums, bulletin boards, message boards, chat rooms) for their purposes, such as solving problems, building social relationships, sharing passions, developing professionals. Accordingly, an increasing number of companies are now attempting to exploit this phenomenon by hosting and supporting their own online community for commercial and non-commercial purposes, such as building relationships with their customers, getting their feedback, strengthening the brand, and reducing customer service costs by enabling customer-to-customer problem solving (e.g. Wiertz and Ruyter, 2007). Typical examples of these firm-hosted online communities are Dell Community, Lego® Message Boards, Manhattan GMAT Forums, Ford Forums, iPod (Apple) Discussions, etc. The purpose of this study is to examine factors such as consumers\u27 feelings (sense of community, trust) and the host firm\u27s supports that motivate consumers to exhibit their voluntary contributions and continue their membership in a firm-hosted online community. This dissertation conceptualizes a relational social model in which sense of virtual community and virtual community loyalty are hypothesized to influence customer trust in the host firm and customer citizenship performance (loyalty intention to the host firm, voluntary participation, voluntary cooperation), respectively. Three components of the firm\u27s support to the virtual community—support for member communication, content enhancement and recognition for contribution—are theorized to moderate the relationships between sense of virtual community and trust, and between virtual community loyalty and customer citizenship performance. The overall finding that emerges from the dissertation is that customer citizenship performance is impacted by a customer\u27s sense of virtual community, loyalty to the community, and customer trust in the host firm. Of the three firm support variables, only support for member communication moderates the relationship between virtual community loyalty and voluntary participation. The dissertation makes four theoretical and managerial contributions. First, the paper presents an interdisciplinary review of extant literature on firm-hosted virtual communities and builds on it to develop a conceptualization of relationships between customer-customer social outcomes and customer-business relational outcomes. Second, while previous research has predominantly focused on firm support as an antecedent of trust in customer-business dyadic relationships (Porter, 2004), this research investigates the role of firm support as a moderator of social relational relationships. Third, the study extends the notion of relationship marketing to include customer-customer relationships which has been forgotten in the marketing literature (Clark & Martin, 1994). The implication is that the host firm can use customers themselves to build long-term customer relationships, and based on it to maintain and increase the firm\u27s market share. Finally, from a managerial perspective, this study proposes a general framework that can enable companies to better understand some of the key aspects that define and drive loyalty in online communities. Since sense of community is unique to a specific community, this dissertation also illustrates that a virtual community is an inimitable asset which can be used as a strategic tool to build competitive advantage by a firm in an online environment

Building Initial Online Trust: A Social Learning Theory Perspective and Application on Brick-and-Click Companies

A customer’s trust in an online seller is considered to be an important factor for ecommerce success. The extant research has addressed the question of what online trust is and why some factors such as reputation are helpful to trust building. However, the question of where customers collect information about an online firm to base their trust on has not been addressed. In this study, we investigate different processes through which evidences are collected and trust is built. A framework of four “learning-processes ” is proposed based on social learning theory. To demonstrate the utility of the framework, we apply it to the initial online trust building for brick-and-click firms. As a result, four customer experiences are identified to affect the initial perception of the trustworthiness of a firm’s online operation, i.e., the experience with the website, the experience with the offline establishment, reputation, and general experience with the Internet. Our results suggest that the social learning theory is a viable tool to understand customer’s trust building process. In the context of brick-and-click firms, it helps uncover the significant as well as in significant learning processes. Satisfaction with offline purchase experience is found to be insignificant. This might be due to the lack of integration between online and offline operations. Implications of the study’s findings are discussed

Beyond harsh trade? The relevance of ‘soft’ competitiveness factors for Ugandan enterprises to endure in Global Value Chains

This article is based on an empirical study which examined the issues of organization and coordination of global production and trade for the case of trade between Uganda and Europe.Respective experiences of 34 exporters in Uganda and 19 importers in Europe were documented through in-depth interviews and consequently analyzed. The article discusses matters of cooperation between the exporters and importers and points to its significance for upgrading and enhancing competitiveness of the exporters studied. It further identifies firm level ‘soft competitiveness factors’ (SCFs) of Ugandan exporters and discusses their relevance for the firms’ performance in Global Value Chains. The findings reveal that deficiencies in SCFs can have damaging effects, and vice-versa. Possession of the SCFs can yield significant competitive advantage for exporters and help to strengthen the relationship with the importers. Findings of ill-treatment of exporters by their importers highlight a particular kind of challenge that is often overseen in the debate about exports of African firms: the challenge regarding business behaviours, practices, and ethics including the ability to engage in relations with foreign buyers and leverage resources, knowledge and generally cooperation from them, first, and the general issue of problematic business practices in the global economy, second. The article policy recommends Policy, practice and research should focus on economic, political, social, cultural and institutional factors that impact on local levels of SCFs; to improve and help exporting enterprises in Africa to survive and succeed in GVCs, within the context of the state of the moral economy in global capitalism

Research in multi-cultural relationship building

This study aims to explore the ‘missing gap' between the values of an Accounting firm and the preference shown by Maaori on how they would like to be approached when wanting to build a trusted relationship within a business sense. This study makes use of qualitative approaches in which data is collected primarily through interviews and analysed to produce results and recommendations. The study found that Maaori would like to be approached in a way that makes sense to them and also identifies with their cultural proceedings. It also provides insight into how important trust is when establishing a relationship with Maaori. The study recommends that further studies conducted should interview a wider variety of focus groups to add different elements to this research and that FIRM A's small business department's offerings do not align with what Maaori want so need to be rethought to adapt to Maaor expectations

Modelling and testing consumer trust dimensions in e-commerce

Prior research has found trust to play a significant role in shaping purchase intentions of a consumer. However there has been limited research where consumer trust dimensions have been empirically defined and tested. In this paper we empirically test a path model such that Internet vendors would have adequate solutions to increase trust. The path model presented in this paper measures the three main dimensions of trust, i.e. competence, integrity, and benevolence. And assesses the influence of overall trust of consumers. The paper also analyses how various sources of trust, i.e. consumer characteristics, firm characteristic, website infrastructure and interactions with consumers, influence dimensions of trust. The model is tested using 365 valid responses. Findings suggest that consumers with high overall trust demonstrate a higher intention to purchase online

Expanding the education role to narrow the audit expectation gap: exploring the expectation gap’s existence among accounting students

Society perceives and expects more from auditor’s than what auditors can actually achieve. Society has been found to misperceive the role of an auditor, in particular, in regards to fraud, internal controls and going concern issues. Society’s differing perceptions and expectations of the auditing profession is known as the audit expectation gap. This study aims to explore the audit expectation gap’s existence among Wintec accounting students and the effect that education has on the audit expectation gap. This research intends to answer two research questions. First, does an audit expectation gap exist among Wintec accounting students? Second, what is the effect of education on the audit expectation gap? To answer these research questions, 20 Wintec accounting students have been interviewed. Ten students who have received an audit education, and ten students who have not received audit education. Qualitative data was collected from these interviews and analysed using a mixed methods approach. This study found that an audit education exists among Wintec accounting students. This study also found that education reduced the audit expectation gap, in particular, the deficient performance gap and the communication gap. However, while education did reduce the audit expectations gap, it was not eliminated. This study recommends that Wintec provides a more basic auditing education during introductory accounting papers, educating students on the role of an auditor. This study also recommends that education focuses on the practical use of an audit report, to increase student’s understandings of the information in the audit report, and how this information is communicated. Thus, the researcher believes that these recommendations will help to further reduce the audit expectation

A Comparative Evaluation of the Internets Influence on International Market Penetration and Development Strategies of Australian SME's

The Internet has the capability to generate geographical international market expansion and future growth for the firm, a concept known as Internetalisation. However, it is yet to be determined as to how much or to what level the Internet influences internationalisation, and thus international market growth. Both international market penetration and the development of new international customers are achievable goals for the Internet enlightened SME. The aim of this research is to explore the influence of the Internet on international market penetration and development from the strategic perspective of the SME in Australia. It was found that although the Internet has given firms the capabilities to become instantly international, a new theory is not needed but rather an evolved version of network theory may be a better explanation of internationalisation of SME’s in today’s digital environment

Analysis and optimization of distribution logistics for Just Water Company

This report details the various factors that affect the operational efficiency of distribution logistics. The research aimed at studying the existing components involved in the distribution logistics of Just Water. Distribution logistics begins at the end of the production line where the finished product is emerged until it reaches the customers. The literature review explains the key components of distribution logistics in an organisation. This research analyses the existing components of the distribution logistics of Just Water and discusses possible improvements that can be adapted to increase the overall efficiency of the distribution logistics operation. The background of the research is that Just Water faces difficulty with delivering its products on time during peak seasons. The research tries to unveil the reason for this delay and finds that the demands for extra water-out deliveries are interfering with the normal runs of the trucks, therein delaying their regular schedule. One another cause was found to be the shortage of supplies due to slow or less return logistics. The research suggests a change in the existing drop shipping distribution model and recommends the adaptation of intermediary or multi-stage distribution networks, possibly the ‘Last Mile Delivery’ configuration in order to reduce delivery lead-time, reduce transportation costs and improve customer satisfaction