Do direct and indirect network externalities matter? Unpacking the causal antecedents of perceived gratifications and user loyalty toward mobile social media

PurposeBy building and examining an integral model, the principal objectives of this research are to systematically explore how indirect and direct network externalities lead to user loyalty toward WeChat through the mediating effect of perceived gratifications.Design/methodology/approachThe data were collected through an online survey of 688 young people in Mainland China. To empirically assess the conceptual model, zero-order correlation analyses and structural equation modeling were carried out utilizing web-based data.FindingsPath analysis results demonstrate that indirect network externalities and direct network externalities exert a significant impact on users' hedonic gratifications and utilitarian gratifications. Moreover, the study discovers the significant mediating influences of utilitarian gratifications on the association between indirect network externalities and user loyalty.Research limitations/implicationsTheoretically, this article may extend the scope of diverse studies on the association between network externalities and perceived gratifications and offer fresh insights into how mobile social media could actually improve user loyalty through enhancing perceived values among younger generation. Practically, this research assists mobile social media practitioners in retaining users and gaining competitive advantages over rival applications.Originality/valueAlthough the extraordinary growth of WeChat has successfully become the dominant media by which individuals develop interpersonal network and contact with others, the roles of perceived gratifications between network externalities and user loyalty toward WeChat have not yet been investigated in depth. These obtained outcomes not only enrich the existing literature regarding the relationship between network externalities and affective response, but also offer fresh insights to mobile social media designers, marketers and users.