Service Business

, Volume 12, Issue 4, pp 731–756 | Cite as

Understanding consumer repurchase intention on O2O platforms: an integrated model of network externalities and trust transfer theory

  • Lin Xiao
  • Bin Fu
  • Wenlong Liu
Empirical article


The purpose of this study is to propose a theoretical model to explain consumer repurchase intentions in O2O commerce context by integrating network externalities theory and trust transfer theory. The model was tested using the data collected from 376 customers of an O2O platform in China. The results showed that different types of trust, direct and peer network externalities, all have impacts on consumer repurchase intentions. Trust transfer processes occur in O2O commerce. Furthermore, three components of network externalities all impact on trust in O2O platform. The implications of this study from both research and practice perspectives are discussed.


O2O commerce Network externalities Trust transfer theory Repurchase intention 



This work was supported by the Natural Science Foundation of Jiangsu Province [grant number BK20170779].


  1. Abroud A, Choong YV, Muthaiyah S, Fie DYG (2015) Adopting e-finance: decomposing the technology acceptance model for investors. Serv Bus 9(1):161–182Google Scholar
  2. Anderson RE, Black WC (1998) Multivariate data analysis. Prentice Hall, LondonGoogle Scholar
  3. Baron RM, Kenny DA (1986) The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and conceptual considerations. J Pers Soc Psychol 51(6):1173–1182Google Scholar
  4. Belanche D, Casalo LV, Flavian C, Schepers J (2014) Trust transfer in the continued usage of public e-services. Inf Manag 51(6):627–640Google Scholar
  5. Cao Q, Gan Q, Thompson MA (2013) Organizational adoption of supply chain management system: a multi-theoretic investigation. Decis Support Syst 55(3):720–727Google Scholar
  6. Carter L (2008) E-government diffusion: a comparison of adoption constructs. Transform Gov People Process Policy 2(3):147–161Google Scholar
  7. Chang MK, Cheung W, Tang M (2013) Building trust online: interactions among trust building mechanisms. Inf Manag 50(7):439–445Google Scholar
  8. Chen J, Zhang C, Xu Y (2009) The role of mutual trust in building members’ loyalty to a C2C platform provider. Int J Electron Commer 14(1):147–171Google Scholar
  9. Chen D, Lai F, Lin Z (2014) A trust model for online peer-to-peer lending: a lender’s perspective. Inf Technol Manag 15(4):239–254Google Scholar
  10. Chen X, Huang Q, Davison R, Hua Z (2015) What drives trust transfer? The moderating roles of seller-specific and general institutional mechanisms. Int J Electron Commer 20(2):261–289Google Scholar
  11. Chin WW (1995) Partial least square is to LISREL as principal components analysis is to common factor analysis. Technol Stud 2(2):315–319Google Scholar
  12. Chin WW (1998) The partial least squares approach to structural equation modeling. In: Marcoulides GA (ed) Modern methods for business research. Lawrence Erlbaum Associates, Mahwah, pp 295–336Google Scholar
  13. Chin WW (2010) Bootstrap cross-validation indices for PLS path model assessment. In: Vinzi VE, Chin WW, Henseler J, Wang H (eds) Handbook of partial least square concepts, methods and application. Springer, Heidelberg, pp 83–97Google Scholar
  14. Chiu C, Cheng H, Huang H, Chen C (2013) Exploring individuals’ subjective well-being and loyalty towards social network sites from the perspective of network externalities: the Facebook case. Int J Inf Manag 33(3):539–552Google Scholar
  15. Cui X, Lai VS, Lowry PB (2016) How do bidders’ organism reactions mediate auction stimuli and bidder loyalty in online auctions? The case of Taobao in China. Inf Manag 5(5):609–624Google Scholar
  16. Fang Y, Qureshi I, Sun H, Mccole P, Ramsey E, Lim KH (2014) Trust, satisfaction and online repurchase intention: the moderating role of perceived effectiveness of e-commerce mechanisms. MIS Quart 38(2):407–427Google Scholar
  17. Fernandez-Sabiote E, Roman S (2016) The multichannel customer’s service experience: building satisfaction and trust. Serv Bus 10(2):423–445Google Scholar
  18. Fitzgerald M (2012) O2O: O2 for local commerce? Accessed 28 Sep 2012
  19. Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Mark Res 18(1):39–50Google Scholar
  20. Ganesan S (1994) Determinants of long-term orientation in buyer-seller relationships. J Mark 58(2):1–19Google Scholar
  21. Gefen D, Straub DW, Boudreau M (2000) Structural equation modeling and regression: guidelines for research practice. Commun Assoc Inf Syst 4(7):2–79Google Scholar
  22. Gefen D, Benbasat I, Pavlou PA (2008) A research agenda for trust in online environments. J Manag Inf Syst 24(4):275–286Google Scholar
  23. Hair JF, Anderson RE, Tatham RL, Black WC (1998) Multivariate data analysis. Prentice Hall, Englewood CliffsGoogle Scholar
  24. Hong IB, Cho H (2011) The impact of consumer trust on attitudinal loyalty and purchase intentions in B2C e-marketplaces: intermediary trust vs. seller trust. Int J Inf Manag 31(5):469–479Google Scholar
  25. Hsu MH, Chuang LW, Hsu CS (2014) Understanding online shopping intention: the roles of four types of trust and their antecedents. Internet Res 24(3):332–352Google Scholar
  26. iResearch (2015) China enterprise O2O service report. Accessed 7 Sep 2015
  27. iResearch (2016) China O2O industry development reports. Accessed 5 July 2016
  28. Kassim NM, Abdullah NA (2008) Customer loyalty in e-commerce settings: an empirical study. Electron Mark 18(3):275–290Google Scholar
  29. Katz ML, Shapiro C (1985) Network externalities, competition, and compatibility. Am Econ Rev 75(3):424–440Google Scholar
  30. Kim DJ (2008) Self-perception-based versus transference-based trust determinants in computer-mediated transactions: a cross-cultural comparison study. J Manag Inf Syst 24(4):13–45Google Scholar
  31. Koufaris M, Hampton Sosa W (2004) The development of initial trust in an online company by new customers. Inf Manag 41(3):377–397Google Scholar
  32. Kuan HH, Bock GW (2007) Trust transference in brick and click retailers: an investigation of the before-online-visit phase. Inf Manag 44(2):175–187Google Scholar
  33. Lee KC, Kang I, McKnight H (2007) Transfer from offline trust to key online perceptions: an empirical study. IEEE Trans Eng Manag 54(4):729–741Google Scholar
  34. Li D, Browne GJ, Wetherbe JC (2006) Why do internet users stick with a specific web site? A relationship perspective. Int J Electron Commer 10(4):105–141Google Scholar
  35. Liang H, Saraf N, Hu Q, Xue Y (2007) Assimilation of enterprise systems: the effect of institutional pressures and the mediating role of top management. MIS Quart 31(1):59–87Google Scholar
  36. Lin CP, Bhattacherjee A (2008) Elucidating individual intention to use interactive information technologies: the role of network externalities. Int J Electron Commer 13(1):85–108Google Scholar
  37. Lin SW, Liu YC (2012) The effects of motivations, trust, and privacy concern in social networking. Serv Bus 6(4):411–424Google Scholar
  38. Lin KY, Lu HP (2011) Why people use social networking sites: an empirical study integrating network externalities and motivation theory. Hum Behav 27(3):1152–1161Google Scholar
  39. Lin CP, Tsai YH, Wang YJ, Chiu CK (2011a) Modeling IT relationship quality and its determinants: a potential perspective of network externalities in e-service. Technol Forecast Soc Chang 78(1):171–184Google Scholar
  40. Lin J, Lu Y, Wang B, Wei KK (2011b) The role of inter-channel trust transfer in establishing mobile commerce trust. Electron Commer Res Appl 10(6):615–625Google Scholar
  41. Lou H, Luo W, Strong D (2002) Perceived critical mass effect on groupware acceptance. Euro J Inf Syst 9(2):91–103Google Scholar
  42. Lu HP, Lin KY (2012) Factors influencing online auction sellers’ intention to pay: an empirical study integrating network externalities with perceived value. J Electron Commer Res 13(3):238–254Google Scholar
  43. Lu Y, Yang S, Chau PYK, Cao Y (2011) Dynamics between the trust transfer process and intention to use mobile payment services: a cross-environment perspective. Inf Manag 48(8):393–403Google Scholar
  44. Mason CH, Perreault WD (1991) Collinearity, power, and interpretation of multiple regression analysis. J Mark Res 28(3):268–280Google Scholar
  45. Mayer RC, Davis JH, Schoorman FD (1995) An integrative model of organizational trust. Acad Manag Rev 20(3):709–734Google Scholar
  46. McKnight DH, Chervany NL (2001) What trust means in e-commerce customer relationships: an interdisciplinary conceptual typology. Int J Electron Commer 6(2):35–59Google Scholar
  47. McKnight DH, Choudhury V, Kacmar CJ (2002) Developing and validating trust measures for e-commerce: an integrative typology. Inf Syst Res 13(3):334–359Google Scholar
  48. Pae JH, Hyun JS (2002) The impact of technology advancement strategies on consumers’ patronage decisions. J Prod Innov Manag 19(5):375–383Google Scholar
  49. Pavlou PA, Gefen D (2004) Building effective online marketplaces with institution-based trust. Inf Syst Res 15(1):37–59Google Scholar
  50. Perks H, Halliday SV (2003) Sources, signs and signaling for last trust creation in organizational relationships. Euro Manag J 21(3):338–350Google Scholar
  51. Phang CW, Tan CH, Sutanto J, Magagna F, Lu X (2014) Leveraging O2O commerce for product promotion: an empirical investigation in Mainland China. IEEE Trans Eng Manag 16(4):623–632Google Scholar
  52. Pizzutti C, Fernandes D (2010) Effect of recovery efforts on consumer trust and loyalty in e-tail: a contingency model. Int J Electron Commer 14(4):127–160Google Scholar
  53. Pontiggia A, Virili F (2010) Network effects in technology acceptance: laboratory experimental evidence. Int J Inf Manag 30(1):68–77Google Scholar
  54. Rahimnia F, Hassanzadeh JF (2013) The impact of website content dimension and e-trust on e-marketing effectiveness: the case of Iranian commercial saffron corporations. Inf Manag 50(5):240–247Google Scholar
  55. Shapiro C, Varian HR (1999) Information rules: a strategic guide to the network economy. Harvard Business School Press, BostonGoogle Scholar
  56. Slyke CV, Ilie V, Lou H, Stafford T (2007) Percieved critical mass and adoption of a communication technology. Euro J Inf Syst 16(3):270–283Google Scholar
  57. Song M, Parry ME, Kawakami T (2009) Incorporating network externalities into the technology acceptance model. J Prod Innov Manag 26(3):291–307Google Scholar
  58. Stewart KJ (2003) Trust transfer on the World Wide Web. Organ Sci 14(1):5–17Google Scholar
  59. Stewart KJ (2006) How hypertext links influence consumer perceptions to build and degrade trust online. J Manag Inf Syst 23(1):183–210Google Scholar
  60. Strader TJ, Ramaswami SN, Houle PA (2007) Perceived network externalities and communication technology acceptance. Euro J Inf Syst 16(1):54–65Google Scholar
  61. Tan FB, Sutherland P (2004) Online consumer trust: a multi-dimensional model. J Electron Commer Organ 2(3):40–58Google Scholar
  62. Teh PL, Ahmed PK, Tayi GK (2015) Generation-Y shopping: the impact of network externalities and trust on adoption of social commerce. Int J Electron Bus 12(2):117–141Google Scholar
  63. Teo TSH, Liu J (2007) Consumer trust in e-commerce in the United States, Singapore and China. Omega-Int J Manag Sci 35(1):22–38Google Scholar
  64. Vazquez-Casielles R, Iglesias V, Varela-Neira C (2017) Co-creation and service recovery process communication: effects on satisfaction, repurchase intentions, and word of mouth. Serv Bus 11(2):321–343Google Scholar
  65. Wang CC, Lo SK, Fang W (2008) Extending the technology acceptance model to mobile telecommunication innovation: the existence of network externalities. J Consum Behav 7(2):101–110Google Scholar
  66. Wang N, Shen XL, Sun Y (2013) Transition of electronic word-of-mouth services from web to mobile context: a trust transfer perspective. Decis Support Syst 54(3):1394–1403Google Scholar
  67. Wei PS, Lu HP (2014) Why do people play mobile social games? An examination of network externalities and of uses and gratifications. Internet Res 24(3):313–331Google Scholar
  68. Wu CW, Huarng KH, Fiegantara S, Wu P-C (2012) The impact of online customer satisfaction on the yahoo auction in Taiwan. Serv Bus 6(4):473–487Google Scholar
  69. Yang J, Mai E (2010) Experiential goods with network externalities effects: an empirical study of online rating system. J Bus Res 63(9–10):1050–1057Google Scholar
  70. Yang L, Mao M (2014) Antecedents of online group buying behaviour: from price leverage and crowd effect perspectives. Paper presented at Pacific-Asia Conference on Information Systems, Chengdu, 2014Google Scholar
  71. Yang S, Chen Y, Wei J (2015) Understanding consumers’ web-mobile shopping extension behavior: a trust transfer perspective. J Comput Inf Syst 55(2):78–87Google Scholar
  72. Zhao L, Lu Y (2012) Enhancing perceived interactivity through network externalities: an empirical study on micro-blogging service satisfaction and continuance intention. Decis Support Syst 53(4):825–834Google Scholar
  73. Zhou T (2015) The effect of network externality on mobile social network site continuance. Program-Electron Libr Inf Syst 49(3):289–304Google Scholar
  74. Zhou T, Lu Y (2011) Examining mobile instant messaging user loyalty from the perspectives of network externalities and flow experience. Hum Behav 27(2):883–889Google Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.College of Economics and ManagementNanjing University of Aeronautics and AstronauticsNanjingChina
  2. 2.School of BusinessJinling Institute of TechnologyNanjingChina

Personalised recommendations