Factors that determine the continuance intention of people to use online social networks for business transactions

Abstract

Social computing researchers are devoting efforts to understand the complex social behaviour of people using social networking platforms, such as Twitter, LinkedIn and Facebook, so as to inform the design of human-centered and socially aware systems. This research study investigates the factors of perceived trust, user satisfaction, social norm and perceived behavioural control, to develop a model for predicting the continuance intention of people to use online social networking for business transactions. In order to validate the predictive capability of the model developed, an online survey was used to collect 300 useable responses from people who have used LinkedIn and Twitter social networking platforms for business transactions at least once. The Partial Least Square (PLS) mathematical analysis tool was thereafter used to perform confirmatory factor analysis, analysis of measurement and structural models. The study results provide significant evidence in support of the factors of perceived trust, social norm and user satisfaction, as determinants of the continuance intention of people using online social networking platforms for business transactions. Perceived trust was found to exhibit a strong relationship with social norm and explains a variance of (R2=0.47). In addition, social norm explains a variance of (R2=0.44) and user satisfaction explains a variance of (R2=0.42), resulting in the model predicting (R2=0.56) continuance intention. In addition, the research model was tested for the moderating effects of usage habit, which were found to significantly moderate relationships between continuance intention and perceived trust, PBCand social norm, resulting in an improved predictive capability of (R2=0.89). The moderating result indicates that a higher level of habit increases the effect of perceived trust, Perceived Behavioural Control (PBC) and social norm on continuance intention. This result confirms the theoretical argument that the strength of user satisfaction to predict continuance, is strengthened by usage habit. The results of this research study generally have practical implications for individuals who desire to offer commercial services on online social networking technologies, to seriously consider building trust and maintaining user satisfaction to sustain their businesses. They should also think of strategies embedded in peer pressure, to attract, retain and establish trustworthy relationships with customers.