Business & Management Studies

Does strategic management of digital technologies influence electronic word-of-mouth (eWOM) and customer loyalty? Empirical insights from B2B platform economy

Does strategic management of digital technologies influence electronic word-of-mouth (eWOM) and customer loyalty? Empirical insights from B2B platform economy

The study reveals interesting and innovative findings demonstrating how adopting digital technologies decreases customer loyalty in the B2B sharing platform.

Authors

Sachin Kumar Mangla, Full Professor and Director, Research Center for Digital Circular Economy for Sustainable Development Goals (DCE-SDG), Jindal Global Business School, O.P. Jindal Global University, Haryana, India.

Amine Belhadi, BEARLab, Rabat Business School, International University of Rabat, Morocco.

Sachin Kamble, EDHEC Business School, Roubaix, France.

Imane Benkhati, ENSA Safi, Cadi Ayyad University, Morocco.

Shivam Gupta, Department of Information Systems, Supply Chain Management & Decision Support, NEOMA Business School, 59 Rue Pierre Taittinger, 51100 Reims, France.

Summary

In a volatile environment with huge opportunities for implementing digital technologies the concept of customer loyalty needs further exploration. This paper examines the effects of strategic management of digital technologies on the effectiveness of electronic word-of-mouth (eWOM) and customer loyalty in the B2B sharing economy context. We draw from research on digital adoption and eWOM alongside the theory of planned behavior (TBP) to develop a dedicated model that encompasses novel constructs depicting strategic management of digital technologies, eWOM, and customer loyalty.

We test our model using a unique data set comprising information on customers’ digital adoption status, eWOM usage, and repurchasing behavior. Our study reveals interesting and innovative findings demonstrating how adopting digital technologies decreases customer loyalty in the B2B sharing platform.

The results of this study further explain this outcome by the decrease in the eWoM value that directs the repurchasing behavior of customer firm’s representatives. Building on these outcomes, managerial implications are provided for strategic management of digital technologies to maximize the trust in eWOM and enhance value for B2B customers.

Published in: Journal of Business Research

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