The value implication of sellers’ following in social marketplaces: A structural holes perspective

Sellers in social marketplaces actively engage following behaviors. However, extant research has repeatedly reported a negative effect of the followee number on seller performance, raising questions about sellers’ value others. Intrigued by this question, study applies theory structural holes to understand and explain following. That is, sellers whose networks span more are better positioned gain capital thus achieve performance. An empirical panel data with 1023 Etsy their involving 156,176 alters per month supports explanation—the in, instead size of, have significant, positive sales The further reveals that such effects stronger for higher product diversification, prominent followees, lower status heterophily.