Department of Business Administration, School of Business and Social Sciences Aarhus University The Governance of Brand Communities in the Social Media The impact of different governance models on brand community related constructs Master Thesis Master of Science in Innovation Management Total number of characters: 105,973 Author: Spyridon Papamichail Academic Supervisor: Dr. Sladjana Nørskov March 2015 ABSTRACT Brand communities are becoming more and more relevant in marketing and management research. The advancement of the internet technologies along with the development of social media are supporting a shift towards customer-customer interaction with marketing practitioners and researchers trying to study the surfacing of a great number of new notions such as brand community engagement and brand community commitment, constructs that have direct outcomes to their respective brands. Communities formed under brands drive brands’ success (or failure for that matter) and thus, forming or aiding at the formation and governance of a healthy brand community can have a variety of benefits. In this spirit, this paper aims to study the governance of brand communities formed in the social media, and its effect on already established constructs and relationships proven to have a direct impact on brand related constructs, e.g. the relationship between brand community identification and brand community engagement. By studying brand community and related literature from other streams and forming an experimental study consisting of a quantitative analysis of an online survey, research will aim to provide valuable input regarding the ideal governance configurations in order to maximize the benefits that brand communities can provide. Keywords: Brand, community, governance, social media, organic, synthetic, engagement, commitment, identification, behavioral intentions. 1 Table of Contents 1. Introduction ............................................................................................................................................................................ 5 2. Literature Review ................................................................................................................................................................. 6 3. 4. 2.1. Brand Community....................................................................................................................................................... 6 2.2. Brand communities in the social media ......................................................................................................... 19 2.3. Governance ................................................................................................................................................................. 23 2.4. Governance in OSS projects ................................................................................................................................. 24 Conceptual Framework ................................................................................................................................................... 30 3.1. Problem Statement.................................................................................................................................................. 31 3.2. Brand Community Identification (BCI) ........................................................................................................... 31 3.3. Brand Community Engagement (BCE)............................................................................................................ 32 3.4. Brand Community Commitment (BCC) .......................................................................................................... 34 3.5. Members’ behavioral intentions ........................................................................................................................ 34 3.6. Brand outcomes........................................................................................................................................................ 35 Methodology ........................................................................................................................................................................ 35 4.1. Ontology and epistemology ................................................................................................................................. 35 4.2. Research Setting ....................................................................................................................................................... 36 4.2.1. Facebook groups............................................................................................................................................. 36 4.2.2. Group Descriptions ........................................................................................................................................ 37 4.2.3. Describing the Open/Closed models ...................................................................................................... 38 4.2.4. Describing the Organic/Synthetic models ........................................................................................... 40 4.3. 5. Questionnaire items ................................................................................................................................................ 40 4.3.1. Brand Community items ............................................................................................................................. 41 4.3.2. Demographics .................................................................................................................................................. 41 Analysis .................................................................................................................................................................................. 42 5.1. Sample characteristics ........................................................................................................................................... 42 5.2. Descriptive statistics .............................................................................................................................................. 43 2 5.2.1. 6. Distribution....................................................................................................................................................... 43 5.3. Construct internal consistency........................................................................................................................... 44 5.4. Model Estimation ..................................................................................................................................................... 45 Discussion ............................................................................................................................................................................. 47 6.1. Theoretical and Managerial Implications ...................................................................................................... 47 6.2. Limitations and future research ........................................................................................................................ 49 7. Conclusion ............................................................................................................................................................................ 50 8. References ............................................................................................................................................................................ 53 9. Appendices ........................................................................................................................................................................... 58 Appendix 1. ............................................................................................................................................................................... 58 Appendix 2. ............................................................................................................................................................................... 60 3 LIST OF TABLES AND FIGURES Table 1. Direct, indirect and total effects of consumer-company and consumer-community identification on attitudinal brand loyalty (Marzocchi et al. 2013).................................................................................................... 19 Table 2. Two types of ideal Governance configurations (Laat, 2007) ................................................................... 26 Table 3. Open Source Project Governance Configurations (Di Tullio and Staples, 2013) ............................. 28 Table 4. Privacy settings of Facebook groups (2014) .................................................................................................. 38 Table 5. Number of participants per group ...................................................................................................................... 42 Table 6. Sample demographics .............................................................................................................................................. 43 Table 7. Sample characteristics per group........................................................................................................................ 44 Table 8. Construct reliability .................................................................................................................................................. 44 Table 9. Construct means and standard deviations for each group ....................................................................... 46 Table 10. Paths and group comparisons............................................................................................................................ 48 Figure 1. Traditional model of Customer-Brand relationship ..................................................................................... 9 Figure 2. Brand Community triad (Muniz and O'Guinn, 2001) ................................................................................... 9 Figure 3. Customer-centric model of Brand Community (McAlexander et al., 2002) ....................................... 9 Figure 4. Brand Community Integration, Satisfaction and Loyalty (McAlexander et al., 2003) ................. 10 Figure 5. Ding et al. (2014) research model ..................................................................................................................... 22 Figure 6. Cognitive model of community governance.................................................................................................. 24 Figure 7. OS Governance matrix model (De Noni et al., 2013) ................................................................................. 27 Figure 8. Conceptual model .................................................................................................................................................... 30 4 1. Introduction Brands are literally everywhere; most of the products we use in our everyday life are branded. Brands add meaning to products and services, additional to their use and performance. They function as a distinguishing characteristic between similar products and services, adding a personal and at times sentimental value to them. In a similar way, communities are also everywhere; people form communities around many of their everyday activities and in more than one way. We are members of geographic communities, and a number of communities formed around our jobs, interests, consumption habits etc. This way, communities serve as a means of creating a personal identity, a process which is interconnected with other people that share a number of common characteristics. Communities that are formed around brands are the main interest of this paper. Since Muniz and O' Guinn (2001) gave the definition of a brand community as “a specialized, non-geographically bound community, based on a structured set of social relationships among admirers of a brand”, literature has gone a long way in exploring brand communities as a phenomenon. While they still represent a relatively fresh and under-explored notion, research has provided with useful information and insights in what seems to be a widespread and influential force in modern business. Brand communities have been present much earlier than the definition appeared; it can be argued that they have been around since the development of the first brands. Consumers of products, who developed social relationships between other consumers due to the abovementioned products, have always been forming brand communities. Admirers of brands, from mobile phones to fast-foods and from skin care products to music bands, are forming brand communities in order to interact, provide and receive technical support, express opinions and magnify their experiences with the brand as well as the community itself. Studying the way brand communities function is a highly relevant subject; brand managers are already embracing brand communities and base their marketing strategies on feedback and support they receive from community members. Relationships between brand community-relevant constructs are driving brand management and justifiably enough; the evolution of the internet especially with the introduction and advance of social media, has made community support more and more important. Moreover, user generated content and innovations are becoming a trend; customers are modifying products and are collaborating between them as well as with the companies in new product development. Community 5 members are becoming brand evangelists, product support is becoming customer-customer relevant and a number of great stories are told. But how should the brand communities be governed? While the use of the term “governance” brings in mind notions far from the voluntary aspect of brand communities, the way in which rules and regulations are formed and communicated is a vital aspect for the longevity and wellbeing of a community. The purpose of this paper is to investigate the different governance configurations that can take part in a brand community. Starting from one basic element, the initiation party of the community (i.e. brand initiated vs. customer initiated) and proceeding with more detailed configurational items such as leadership and modularization, the scope of this study is to provide relevant insights in a branch of brand management that is probably less studied than its importance dictates. This paper will be organized into seven chapters. After the introduction, a thorough literature review will be presented to the reader, in order to accomplish a baseline point of reference regarding the state of the art in the notions researched. The third chapter will present the conceptual framework, including the constructs that will be studied and the relationships formed between them. The fourth chapter will feature a detailed description of the methodology, followed by the fifth chapter in which the statistical analysis of the data will take place. The sixth chapter of the paper will present the discussion on the outcome of the research including the implications, limitations and proposals for future research, followed by the conclusion on the seventh and final chapter of the paper. 2. Literature Review This section will present the existing literature in the subject of brand communities. The most relevant literature will be presented in a timeline fashion; from Muniz and O’Guinn’s 2001 article, which has become a landmark in the subject area for introducing the term of a brand community and its most important characteristics, to the latest articles pointing to online brand communities and social media. 2.1. Brand Community Muniz and O’Guinn were the first to capture the meaning of a brand community. Their 2001 paper titled “Brand community”, they present the notion of a brand community as a distinct entity in the context of consumption. According to their definition, a brand community is a “specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand” (Muniz and O’Guinn, 2001). 6 What they manage to do with this article is of great importance. Except from introducing an area of study that will prove to be a very relevant for a number of research areas, they introduce a new model to the old customer-brand relationship, namely the customer-brand- customer triad. In this model, the interactions between consumers are playing a vital part in marketing, overriding the traditional model of brand-consumer which had been the traditional model of branding in the past. As they point out, “The brand communities are social entities that reflect the situated embeddedness of brands in the day-today lives of consumers and the ways in which brands connect consumer to brand, and consumer to consumer.” To support their definition they go on examining a number of brand enthusiast groups, in order to establish that the three markers of community are indeed present in what they refer to as brand communities, adding that “Each of these qualities is, however, situated within a commercial and massmediated ethos, and has its own particular expression”. Thus, in order for brand communities to exist, all three markers should be present to some extent: a. Consciousness of kind, which represents the perceived idea of similarity between community members, under characteristics not commonly shared by non-members of the community; a shared sense of mutual belonging, a “shared consciousness, a way of thinking about things that is more than shared attitudes or perceived similarity. It is a shared knowing of belonging (Weber [1922] 1978).” b. Presence of shared rituals and traditions, which refers to the rules, regulations, procedures, jargon, even myths and notions that are commonly shared by community members. According to Muniz and O'Guinn, “Rituals and traditions perpetuate the community’s shared history, culture, and consciousness. Rituals “serve to contain the drift of meanings; . . . [they] are conventions that set up visible public definitions” (Douglas and Ishwerwood 1979, p. 65) and social solidarity (Durkheim [1915] 1965). Traditions are sets of “social practices which seek to celebrate and inculcate certain behavioral norms and values” (Marshall 1994, p. 537)”; c. Sense of moral responsibility, representing the motivation to co-operate, support, and offer services to each other inside the community. “This sense of moral responsibility is what produces, in times of threat to the community, collective action.” (Muniz and O'Guinn 2001). Another very important element of their work is the distinction between brand communities and other similar groups of brand enthusiasts, such as subcultures (Harley Davidson fans) and marginal 7 subcultures (punk-rockers), as well as distinguishing their work to the literature that exists in neotribalism: “Brand communities can be relatively stable groupings, with relatively strong (but rarely extreme) degrees of commitment. Their moral responsibility may be a limited and subtle one, but it is a nontrivial one (Maffesoli 1996)” (Muniz and O’Guinn, 2001) Muniz and O’Guinn also point out that while brand communities can be formed around any brand “they are probably most likely to form around brands with a strong image, a rich and lengthy history, and threatening competition. Also, things that are publicly consumed may stand a better chance of producing communities than those consumed in private”. McAlexander at al. (2002) go on to develop the customer-brand-customer triad even more by expanding it to “entities and relationships neglected by previous research”. As Ouwersloot and Odekerken (2007) point out, McAlexander et al.'s (2002) study can be considered a milestone for approaching brand communities under a clear marketing spectrum, with most of the previous work concentrated on the sociological aspect of brand communities. In their paper they are investigating “brand community integration” as a construct directly related to brand loyalty. As they write, “For decades, marketers have sought the Holy Grail of brand loyalty. Just as the legendary grail of Arthurian quest held the promise of extended life and renewal, marketers attribute to brand loyalty and its sister icon, customer retention, the promise of long-term profitability and market share (Bhattacharya, Rao, and Glynn 1995; Reicheld and Sasser 1990).” By creating a more thorough model (Figure 3) to Muniz and O’Guinn’s triad model (Figure 2), they also support the importance of creating a captivating customer experience through brand communities, and giving great importance to the integration of new members. In their words “The benefits to a firm of cultivating brand community are many and diverse. Community-integrated customers serve as brand missionaries, carrying the marketing message into other communities. They are more forgiving than others of product failures or lapses of service quality (Berry 1995). They are less apt to switch brands, even when confronted with superior performance by competing products. They are motivated to provide feedback to corporate ears. They constitute a strong market for licensed products and brand extensions. In many cases, we even find loyal customers making long-term investments in a company’s stock. Customers who are highly integrated in the brand community are emotionally invested in the welfare of the company and desire to contribute to its success.” 8 Figure 1. Traditional model of Customer-Brand relationship Figure 2. Brand Community triad (Muniz and O'Guinn, 2001) Figure 3. Customer-centric model of Brand Community (McAlexander et al., 2002) 9 The stream of research on brand community-related constructs is continued with McAlexander et al. in 2003 with their paper empirically exploring the “relative impacts of satisfaction, brand community integration, and consumer experience on customer loyalty as expressed by future purchase intentions and behavior”. In this paper, the researchers challenge the notion that overall satisfaction is an antecedent to brand loyalty, especially for the more experienced users who “(with experience) have the opportunity to develop the additional and meaningful connections of brand community that can provide a strong bond that affects satisfaction and loyalty”. They find that brand community integration is a more powerful force behind the formation of brand loyalty, and advice managers to focus their forces in creating “a suitably supportive service-delivery environment” (their conceptual model is seen in Figure 4). Figure 4. Brand Community Integration, Satisfaction and Loyalty (McAlexander et al., 2003) The scope of research on brand community constructs is expanded with Algesheimer et al (2005), who concentrate on notions such as brand community identification and brand community engagement. Algesheimer et al. “develop and estimate a conceptual model of how different aspects of customers’ relationships with the brand community influence their intentions and behaviors. The authors describe how identification with the brand community leads to positive consequences, such as greater community engagement, and negative consequences, such as normative community pressure and (ultimately) reactance.” Through their work, they produce a very thorough conceptual framework in which the first hint to governance mechanisms is appearing; namely they introduce the constructs of normative community 10 pressure leading to reactance, which refers to a pressure to conform with established rules and regulations causing a sense of disapproval, with reverse correlation to brand loyalty intentions and, finally, brand related purchase behavior. Moreover, their conceptual framework serves as an update to the existing frameworks; specifically they test their model in relation to the already existing model in literature, finding their own to be clearly superior. Another important finding of their research is the very high significance of the brand community identification-brand community engagement relationship, a finding that relates very closely to the scope of this thesis paper. They conclude that “this example points to the importance of purposely selecting, initiating, managing, and controlling interactions among customers when facilitating brand communities.” Muniz and Schau (2005) as well as Schouten et al. (2007) are two papers that shift attention to a different side of brand communities: their ability to produce powerful feelings resembling religious and transcendent experiences. Muniz and Schau focus on the Apple Newton brand community, a product that at the time of the study had been long discontinued, but a number of 20.000 people were still using it on a day-to-day basis forming a very interesting kind of brand community. As they write, “Supernatural, religious, and magical motifs are common in the narratives of the Newton community. There are strong elements of survival, the miraculous, and the return of the creator. We propose that these themes are, first, a product of the context in which this community operates and, second, indicative of the very clear and resilient need humans have to believe in something or someone outside mundane reality”. They go on assorting the elements of these narratives under 5 categories, namely: Tales of Persecution Tales of Faith Being Rewarded Survival Tales Tales of Miraculous Recovery Tales of Resurrection Muniz and Schau argue that religiosity is more often found in “lowly underdog brands, those that are marginalized, stigmatized, and left behind”, in which there is a constant need for the members to cluster and argumentatively support the underdog status. They conclude that “these data suggest that a 11 common aspect of brand communities could be the potential for transcendent and magicoreligious experiences. The capacity for magic and mysticism may be one factor that attracts people to form communities around these brands, as well as the quality that facilitates the transformative, liberatory, and emancipatory aspects of consumption sometimes enacted in them”. Schouten et al. (2007) study transcendent customer experiences (TCEs) which “have aspects of flow and/or peak experience, can generate lasting shifts in beliefs and attitudes, including subjective selftransformation”. Schouten et al. are investigating the connection between TCEs and brand community integration which according to them should deliver a particularly strong kid of brand loyalty. Their work builds on McAlexander et al. (2002), upgrading the findings by introducing TCE in the BC integrationBrand loyalty relationship. The authors support that through brand community experiences sometimes a deeper experience can be built, one which resembles experiences of a religious and sacred nature. They explain that “A person experiencing transcendence in the context of a consumption event may develop strong emotional ties to the individuals, products, and/or institutions that facilitate the experience. This “conversion” may be especially strong to the extent that the marketing institution offers texts (e.g., marketing communications), icons (e.g., branding, celebrity endorsers, and product designs), rituals (e.g., events or product usage patterns), and community (e.g., interaction with other brand users and agents of the firm) that may trigger future TCEs.” Their work brings front a very interesting aspect of brand community: the notion that by enriching the experience of customers by promoting certain aspects of a brand as well as supporting the well-being of brand community members, marketers can generate strong brand loyalty. This paper becomes very interesting once juxtaposed with Muniz and Schau’s paper presented before, where similar notions were presented in a brand community which received minimal support from the company (a discontinued product). Schouten et al. conclude that “an emerging body of research indicates that the social, emotional, and psychic connections inherent in brand community relationships are more resilient than traditional loyalties developed by managing customer satisfaction”. Cova et al. (2007) attempt to study the Warhammer community, a role playing board game community, under geographical terms. Specifically the main interest of the authors is to challenge the “nongeographically bound” part of the brand community definition, by presenting the geographically 12 inspired differences that rise between members of a brand community that is formed simultaneously from members of different cultures (Warhammer communities in the United States and France). In their introduction they state clearly that “based on their domestic US study Muniz and O’Guinn (2001, p. 413) affirm that brand communities are “liberated from geography.” On the other hand, the present text argues that community attached to a global brand constitutes a complex phenomenon, one that both integrates and ignores geographical considerations”. Cova et al. don’t attempt to produce results that would provide a cross cultural template of brand community behavior. Instead they try “to understand any links that may exist between global brand, brand community, subcultures and cultures”. With this study they hope to show that there is great “marketplace relevance” deriving from the different meanings assigned to global brands from sub-tribes which are geographically and sometimes culturally distanced. They find that communities of the same brand that are formed by members of different cultures can have different meanings attributed to both the brand itself and the community. Thus, they believe that “we should moderate Muniz and O’Guinn’s (2001) affirmation that ‘brand communities transcend geography.’ This is only partially true. Different local brand tribes do give variable (and occasionally opposing) meanings to a particular brand. However, such oppositions are less important than local tribe members seem to believe, and the brand cult will help members fill whatever contradictory vacuum lies between the local cultural model and their real lives (Holt, 2005).” Finally, they advise managers to develop a global strategy that would rely on these different meanings, thus providing local cultures with a possibility to enable some sort of ‘communal glocalization’”. Carlson et al. (2008) introduce the term “psychological sense of brand community (PSBC)” in the literature, the notion that a brand community can exist without the physical interactions, next to or opposite to the “social” sense of brand community. They define a “psychological brand community” as “an unbound group of brand admirers, who perceive a sense of community with other brand admirers, in the absence of social interaction”. The absence of membership and social interaction, two very important elements of brand communities in the literature up to now, may resemble a one-sided interaction, but according to the authors such brand communities do exist and share many characteristics of more traditional brand communities. Differences lie on how constructs such as brand community mediate “important outcomes” as well as the degrees in which brand community identification and brand identification influence PSBC depending on the existence of social interactions. The authors conclude that “unlike previous research on brand 13 communities, this study has focused less on the characteristics of the community itself, and more on the psychological relationships that exist between individuals who perceive a sense of community and the brands around which the communities have been formed […] psychological brand communities may require substantially less effort and financial resources to create and maintain than social brand communities”. Ouwersloot and Odekerken-Schroder (2008) focus on virtual brand communities, a term that was introduced in 2005 to differentiate between traditional brand communities and the ones that are exclusively formed and managed online. As they write, “brand communities are often supported by internet-based technology, but the concept is broader and essentially encompasses everyone who feels connected to the brand, online or offline. Virtual communities in contrast by definition are only defined in the virtual world.” The authors also differentiate between company-moderated and user-moderated communities, a differentiation which is also relevant to the subject of this study. Their work concentrates exclusively on company-moderated communities, trying to present the degree of heterogeneity between community members and the different strategies that can be applied based on the different characteristics that these groupings provide. In their study, they approach two brand communities of well-known brands, specifically a board game player community (Settlers of Catan) and the community of the watch manufacturing brand Swatch. They study the different motives members had in order to join the brand communities and the background relationships of these motives, dividing them into four categories, namely: “Customer-company relationship”, “Customer-product relationship”, “Customer-customer relationship” and, “Customer-brand relationship” While their study has a great number of limitations, and, as they also put it themselves, does not provide grounds for generalization, they do provide a number of important managerial implications. Ouwersloot and Odekerken-Schroder write that “Brand community members constitute a specific group of customers, but treating them as a single, homogenous group may be a serious mistake. Community members share a reasonably strong commitment to the brand, but the brand concept is so complex 14 (Muhlbacher et al., 2006) that members can and do differ in many respects”. They promote a differentiation in the communications with members according to the motives of membership, as well as a differentiation in the communication strategy used for promoting the community according to the purpose for which the community is built. Bagozzi and Dholakia (2006) take on small group brand communities investigating “behavior and determinants of the behavior” of their members, attempting to enrich both brand community and social psychology theory by projecting the Theory of Planned Behavior (TPB) on their findings. In their attempt to enrich the existing framework of TPB, they investigate both psychological and social aspects of the theory and find that “small group brand communities were found to express their decisions in social intentions, which in turn influenced group behavior. In addition to the effects of the classic antecedents specified under the TPB (i.e., attitudes and subjective norms), we found that dynamic appraisals in the form of anticipated emotions and group identification processes in the form of social identity were key explanatory variables.” Bagozzi and Dholakia emphasize the great differences in the effect of the above characteristics to be explainable under size differences; small, more personal communities are affected differently and one should expect different outcomes depending on the size of the community. Another paper concentrating on brand community size is Scarpi (2010), who investigates size as a characteristic and its outcomes on a number of brand community constructs, specifically brand community identification, brand affect, community loyalty, brand loyalty, brand evangelism, and community evangelism. Specifically he investigates “the causal relationship between community identification, community loyalty, brand affect, brand loyalty and word of mouth, developing a structural equation model. We collect data from small and large communities, and look at the differences in the relationships based on community size”. He finds brand community size to be an important moderator for the above constructs and encourages managers to consider this factor when applying marketing strategies. He summarizes his findings in four points, specifically: Small and large communities work quite differently, and size is key to understanding the effects of identification on loyalty and word of mouth; Identification in small communities builds a stronger sense of loyalty to the community; Brand affect is a very strong antecedent of brand loyalty in large communities, whereas in small communities loyalty to the brand stems more from loyalty to the community; 15 Identification in small communities generates more word of mouth for the community than in large ones (through community loyalty), but nonetheless generates word of mouth also for the brand (through brand affect). It is important to mention that community size has already been investigated as a mediator of community influence in Algesheimer et al. (2005). Moreover, a number of papers in brand community literature suggest size differentiation in their “further research” sections. Fuller et al. (2008) take on brand community members’ willingness to participate in open innovation and its relationship with a number of brand and brand community constructs. Their findings challenge a variety of pre-assumed relationships. Specifically they find small significance on the effect of brand community identification as well as brand knowledge on the members’ willingness to participate in open innovation. On the other hand, consumer creativity components (consisting of personality traits) and brand trust are found to have a significant relation with open innovation willingness. In their own words “Although members of brand communities offer a wealth of experiences and knowledge, they do not necessarily seem to be interested in sharing their insights with producers, even if it is their favored brand. Rather, it is brand community member interest in innovation activities and their creative personality that drive their interest in engaging in open innovation projects”. Interestingly enough, the authors advice against the formation of brand communities with innovation as a main interest; they believe that brand enthusiasts would be better attracted under other terms than generating innovation. Woisetschlager et al. (2008) combine social identity theory (SIT) and the concept of psychological sense of community (PSOC) in investigating members’ participation in brand communities. With the support of these theoretical foundations they argue that it is participation that leads to the establishment of a successful brand community. According to the authors, participation “is affected by identification with the brand community, satisfaction with the brand community, and the perceived degree of influence opportunities” and managers can influence these notions, thus generating participation through community management. They provide three guidelines to managers, namely: 16 Supporting identification with the community by grouping homogeneous members together into sub-communities; Providing interaction elements to the members (in the way social media provide communication platforms); Demonstrating openness to user-generated content in order to stimulate member contributions. They add that increasing the size of the community should ideally take place through members’ recommendations and engaging new members in order to ensure the community’s long term success. Casalo et al. (2013) are investigating community integration by analyzing its antecedents and consequences in online travel communities. Their work plans to analyze the integration process from two perspectives, by investigating the ways in which perceived reciprocity in the community as well as perceived group similarity affect the integration of new community members. Their findings support their hypotheses, by proving that indeed community integration depends highly both on perceived reciprocity and perceived group similarity. They also find that community integration “affects a member's behaviour by enhancing the intention to participate in the online community activities.” Interestingly their research concludes that while perceived reciprocity has a positive effect on members’ satisfaction and intention to participate, perceived similarity has a weak influence on these variables. One explanation they propose is that travel communities are formed under utilitarian principles (members are mainly joining in order to find valid information, receive help and recommendations etc.) and that in other communities, formed under principles of social interaction, perceived similarity would present a higher degree of influence on the above variables. They conclude that “the intention to participate in an online community might increase if managers enhance perceived reciprocity in the community (e.g., promoting communication between the community members by organizing virtual meetings, or contests), favouring the integration of new members (e.g., involving old members in conversations with newcomers or fostering community transparency so members can easily find similarities), and satisfying members' needs. These actions will help maintain a critical mass of community members, supporting long-term community success.” Marzocchi et al. (2013) provide some valuable insight in loyalty under brand community terms. In their paper they are juxtaposing brand loyalty to brand community loyalty, trying to establish the connections between brand community identification, brand identification, brand trust and brand affect. Their thesis is that brand community identification and brand identification “exert independent and equivalent 17 impacts on relevant loyalty-related outcomes”, a notion that had not been investigated to that time. Their main focus is the presence and extent of these differentiated effects and their sub-goal is to “clarify the mechanisms that community members enact in the process of constructing loyalty. In particular, it aims to determine whether this process is driven by affective reactions (that is, brand affect), by trustworthiness connections with the brand (brand trust) or by both, and to what degree.” Marzocchi et al. incorporate the three components of social identification (cognitive, evaluative and emotional) which have been introduced in brand community literature by Algesheimer et al. (2005), and analyze the concept further more in order to proceed with the abovementioned distinction. According to the authors, and taking into account that people can identify with multiple targets, it is very useful to understand “which is the main target of identification for community members and which exerts the most influence on loyalty and other desirable outcomes”. Moreover, multiple social identities studied simultaneously offer grounds for further research, as their state and quality is dependent to “a reference group: the members of the next more inclusive self-category”. Brand trust, defined as “the willingness of consumers to rely on the power of the brand to realise its stated purpose” and brand affect, defined as “a brand’s ability to draw out a positive emotional arousal in the consumers as a result of its use”, are presented as the most relevant of the desired effects of identification and are hypothesized to lead to brand loyalty. Brand loyalty itself is categorized in behavioral loyalty and attitudinal loyalty, with the latter being regarded as an antecedent to the former. Other relevant constructs investigated are propensity to comment, resilience to negative information, social promotion and physical promotion, all of them parts of the larger category of brand loyalty. Their research validates the existence of two distinct types of identification, with both of them having significant and positive influence on brand loyalty, interestingly in different terms. Specifically they find that “identification with the two objects activates different psychological processes in brand community members’ minds”, a finding that can be seen in the table below (Table 1). 18 Table 1. Direct, indirect and total effects of consumer-company and consumer-community identification on attitudinal brand loyalty (Marzocchi et al. 2013) They conclude that “the empirical results provide robust support for the hypothesis that a consumer’s identification with a brand community leads to higher levels of both attitudinal and behavioural loyalty to the company itself, as well as stronger propensity to comment favourably and constructively on the company […] brand communities, besides contributing to the spread of curiosity and passion attaching to a brand in the market, could be important sources of new ideas and product innovations, whose origins are not so much traced back to commercial interests, per se, as to the desire to share experiences, foster common values and improve user learning”. 2.2. Brand communities in the social media In the following section six articles that investigate the existence and behavior of brand communities in the social media will be presented. Social media have been acting as a catalyst in the transition from traditional brand communities to virtual brand communities. According to Laroche et al. (2012), social media represent a phenomenon deeply embedded in our everyday lives, where “people spend more than one third of their waking day consuming social media”. With almost a billion people and more than 1.5 million businesses maintaining a profile on Facebook (Zaglia 2013), this area of study has become of great importance for marketing and management researchers. Studying brand communities alongside social media is a rather fresh notion, with the majority of research taking place during the last decade. Zaglia (2013), in her paper investigates the presence of brand communities in social media as well as “how they exist, on what rationale they build on, and what forms with what functions they embody”. In this paper it is proposed that social networks provide with an opportunity to examine the characteristics 19 of BCs in depth. Zaglia writes that “However, to date, the existence, functionality and influences of brand communities and social networks have mainly been investigated separately. […] Consequently, this paper aims to contribute to research by investigating the existence of brand communities embedded in a social network environment, and gaining further insights into the interplay of these related social concepts”. Zaglia goes on to examine the similarities and connections between Facebook communities and brand communities, arguing that while they do not represent uniform concepts, they do seem as overlapping. As Zaglia puts it, “social networks and brand communities share the basic property of their members interacting with each other. These ongoing interactions are critical for the survival and success of social networks; similarly, social relationships are crucial in brand communities; the latter is built around a brand, its core asset, but ultimately grows and persists due to the relationships among its members”. The element of social interaction between the members, as well as a degree of brand affection, seem to be a common characteristic that is highly relevant, functioning as a driver for Muniz and O'Guinn’s community markers as well as social identity. In Zaglia’s words, “depending on the intensity and form of interaction and brand affection of the members, brand community characteristics (e.g., community markers and social identity) abound to different extents”. Zaglia goes on comparing two distinct classifications of Facebook communities, the “group” and the “fan page”, later named “Facebook page”, concluding that “Brand communities within social networks do exist and they classify into different sub-groups based on dissimilarities. […] Based on this results, the Facebook group, certainly states a clear brand community, showing strong value of all community markers, social identity, brand emotions, and the commercial character. The fan page, on the other hand, seems to embody a weaker form of a brand community; Consequently, Facebook pages and groups are comparable to marketer-generated and consumer-generated brand communities”. Habibi et al. (2014) follow a similar path in their research. By applying netnographic analysis on two established social media based brand communities they explore the unique aspects of social media in an attempt to recognize unique aspects in the brand communities “at the intersection of brands and social media”, ultimately differentiating them to their offline or online counterparts. The authors identify some major differences between social media brand communities and online/offline brand communities. Firstly, there is a lack of cost for creating and maintaining a social media brand community. Secondly, the fact that one does not have to own a product to join a community like that, which differs for e.g. brand-fests or private club communities. Finally, users in a social media brand community are commonly using their real names, unlike virtual brand communities where 20 pseudonyms are being used, resulting in a change in the pattern of personality of community and social media users. Examining the unique aspects that social media exhibit, the authors present the major differentiations between social media platforms and other online/offline ones, stating that “most of this metamorphosis comes from two underlying aspects of social media: the technological aspect of Web 2.0, and the ideological aspect of User Generated Content (UGC)”. The combination of the two are having a significant impact in the formation of social media brand communities, generating five major dimensions of differentiation: Social context Structure Scale Content and storytelling Number of affiliated brand communities Goh et al. (2013) also take on the construct of User Generated Content (UGC) and compare its impact to the impact of Marketer Generated Content (MGC) in a social media brand community on consumers’ repeat purchase behaviors, as well as the importance of communication modes in the process (direct vs. indirect). This paper provides some useful input in the roles of marketers as well as community members in brand communities active in the social media, while at the same time attempts to provide an economic value to the members’ online WOM. The authors are creating an interesting comparison between UGC and MGC, in terms of their impact in the members’ purchase intentions. Specifically they are trying to answer the question of which has more importance regarding the purchase intentions of the members: their lack of information, better fulfilled with information offered through MGC, or their pursuit for other customers’ experiences and input, favoring information offered through UGC. Another subject investigated by the authors is the mode of communication that better suits in different occasions, namely direct or indirect communication. They hypothesize that direct information favors UGC in influencing members’ purchase behavior, while for MGC information they argue that both communication modes can be seen as having both positives and negatives: while direct communication does seem to represent a high level of customer service, it might lead to negative effects, such as customer skepticism and annoyance. They conclude that UGC and MGC are both important in terms of members’ purchase behavior. While MGC can have a great effect, it is mainly through persuasive interactions, while UGC combines 21 persuasive and informative interactions, having a much greater effect. Specifically for persuasive interactions, UGC seems to have an even greater importance to MGC. Regarding the mode of communications, they conclude that the effect of direct and indirect communications differentiates between UGC and MGC. They write that “in driving purchases, undirected contents are more effective than directed ones for both informative and persuasive consumer-toconsumer communication, whereas directed contents are more effective than undirected ones for persuasive marketer-to-consumer communication”, stating that their hypothesis that UGC is better communicated directly failed due to the manner that posts and comments on Facebook are structured or displayed. Finally, they advise managers to “transform their role from a passive and reactive one to a proactive and influential one. By actively engaging consumers in brand communities, marketers can better reap economic values from social media brand communities”. Ding et al. (2014) are also investigating the role of UGC and MGC in the growth of social media based brand communities. In the proceedings of the 47th Hawaii International Conference on System Sciences, they present their work, concentrated on the above notions. Their first implication to theory is the categorization of UGC and MGC in two distinct types of content, product related (for product promotion) and social-related (for relationship building). By using Signaling theory and the word-of-mouth (WOM) communication framework they formulate a set of hypotheses regarding the effect of social and product related MGC and UGC, on community growth as well as in their own relationship. Figure 5. Ding et al. (2014) research model 22 They sum up their findings stating that “only social-related (but not product-related) MGC can promote growth, while both types of UGC are effective in this regard. This seems to depict a more limited role of MGC compared to UGC when considering growth promotion. […] Interpreting these results alone, one may also conclude that firms should just focus on generating more social-related MGC and disregard product-related MGC if their objective is to promote community growth. However, further examinations reveal that both product- and social-related MGC could stimulate the respective type of growthpromoting UGC.” (Ding et al., 2014) Laroche et al. (2012) are studying the effect of social media based brand communities, defined as communities initiated in the social media, on a number of constructs such as brand community markers, value creation practices, brand trust and brand loyalty. They find that communities initiated this way are having a positive effect on value creation by enhancing community markers, which in its turn is leading to brand trust and eventually brand loyalty, as seen in the figure. Note the non-significant path between Community Engagement and Brand Trust, with both of these constructs being a part of this thesis paper. They conclude that “The vast reach, low cost and popularity of social media are prompting all brand managers to take advantage of such characteristics, so that they, almost blindly, want to be on social media […] if managers wish to enhance brand loyalty, they have to promote brand use and impressions management practices in their brand communities […] however, it should be noted that brand communities based on social media might not be easy to manage. In this environment, customers are more powerful than before. They easily can interact, speak and broadcast their ideas to each other while companies would have increasingly less ability to manage the information available about them in the new space.” 2.3. Governance Due to the fact that governance of brand communities has not been assessed thoroughly in literature, most of the literature will be drawn from theory established on another stream, mainly Open Source Software project governance. This part will provide a presentation of the papers that inspired the connections between brand communities and various governance models. 23 2.4. Governance in OSS projects As seen in the figure below (Figure 6), governance of OSS projects has acted as an inspiration regarding the governance configurations implemented in this paper. The idea behind this connection is the characteristics shared by these two types of communities. OSS and Brand Communities indeed share a number of characteristics, on top of fulfilling the three markers of community presented above to a great extent. OSS members gather voluntarily under software development projects which can be viewed as brands, initiated either by other members or companies, sharing common goals and collaborating towards the community’s wellbeing. While OSS communities are usually project and goal oriented, community governance does appear to have many characteristics in common, thus OSS governance literature can potentially provide numerous insights in the ways brand community governance is implemented. This section will present three inspirational papers in this area, providing insights in the ways governance is applied in OSS projects as well as the links that exist between OSS governance and brand community governance. Figure 6. Cognitive model of community governance Laat (2007) presents three types of governance in OSS projects: ‘spontaneous’ governance, internal governance, and governance towards outside parties. He starts by presenting the basics behind the formation of OSS projects by giving the main reasons and motivations behind the movement. According to the writer, hackers, which have initiated the motion towards OSS, formed their ideology under two 24 main currents: the radical camp, who “considers closed code software production as harmful, and espouses the view that software should be a public good, both publicly available and modifiable”, and the more moderate camp, for whom “the main defect of industrial software production is its closed character, barring public inspection of the code”, aiming for optimum software quality. The first group idealistically avoids any kind of private appropriation and uses a common license (GPL-General Public Licence) to ensure it, while the second finds protection from private appropriation as being unnecessary. Spontaneous governance stems from the need of small numbered projects to be free of control. In these cases, governance takes a more informal character, with high-contributors taking on a kind of unofficial leadership status, while the communities “are self-directing without any kind of explicit and formal coordination or control”. With the advance of time and with communities getting larger and more professional, another type of governance started to emerge, namely “internal governance”, characterized by a wide array of explicit and formal tools. Six main categories emerged under these terms: 1. Modularization Projects started being divided into modules, each one representing another area of interest. In large OSS communities “literally dozens of modules may coexist together”. 2. Division of roles Members are taking on one or more roles depending on the project, with a range of 3-8 roles being usually in use. Example roles are these of the “user”, “contributor”, “owner”, “observer” etc. 3. Delegation of decision making In this category the main distinction is this of a centralized versus a de-centralized decision making paradigm. In a centralized design, decision making is a responsibility of the project leader and his assistants, while in the de-centralized design, developers of modules are making the decisions. 4. Training and indoctrination This category refers to the conditions of entry, which, as the author writes, have grown to be from none in the early days of OSS development, to a wide set of entry requirements inspired by the growth of larger projects and a greater division of roles to be assigned. 25 5. Formalization In the formalization category there is a presentation of a wide array of tools and formalized procedures aiming to “knit globally distributed virtual contributors together”. These tools and procedures appear to have been uniformly accepted for OSS projects worldwide, giving a standardized character to a number of tasks. 6. Autocracy/Democracy The sixth category answers the following question: “is leadership self-appointed and imposed from above (autocracy), or are community members empowered to choose their leaders in some kind of electoral process (representative democracy)?” Autocracy points out to a more traditional leadership formation, while Democracy is more representing of a modern, autonomous OSS project leadership model. As seen in the table below (Table 2), Laat proceeds by pairing the above governance categories with their organizational equivalents. Specifically he parallels “modularization” to “horizontal differentiation”, “division of roles” to “vertical differentiation”, “delegation of decision-making” to “vertical decentralization”, with the three remaining ones staying as they are for both streams. Table 2. Two types of ideal Governance configurations (Laat, 2007) Putting the above into context, Laat proposes two main configurations, stemming from the relationships spotted between organizational analysis and analysis of OSS governance mechanisms, the Autocraticmechanistic structure and the Democratic-organic structure, seen in the figure. With the leadership style being the primary factor, and taking into account a high degree of horizontal differentiation in both cases, he finds autocratically initiated communities leaning towards a configuration of high vertical 26 differentiation, high vertical centralization, and low training and indoctrination mechanisms, with the opposite values characterizing a more open-democratic community. He also finds that a high degree of formalization is “indispensable” in order to “connect virtual members together” adding that “of course this is just an idealtypische kind of exercise; actual configurations of OSS communities will show a lot more variation”. De Noni et al. (2013), provide with further valuable insights in OSS governance. In their paper “The Governance of Open Source Software Communities : An Exploratory Analysis”, they argue that OSS governance is indeed configurational, with four main configurations formed by applying and developing Laat’s model, under the combinations provided by three dimensions: licensing agreement, decisionmaking rights and participation in the development process. By analyzing data from 40 OSS projects, they introduce a matrix with two dimensions, leadership and decision making and reciprocity of the appropriability regime, with the four configurational governance mechanisms and their respective description being the ones seen in the figure below (Figure 7). Figure 7. OS Governance matrix model (De Noni et al., 2013) De Noni et al. clarify more the distinctions between the four configurations: “open source and sponsored-based differ mainly in their degree of accessibility to leadership and decision making. In an 27 open source community, leadership and decision making are a highly distributed process. In a sponsored community, on the contrary, sponsors retain control. […] Reciprocity and tolerant dictatorship differ in the distribution of power in the community. In a reciprocity-based community, community leadership and decision making are highly distributed, whereas in a tolerant dictatorship community, they are concentrated in the hands of the copyright holder.” Di Tullio and Staples (2013) investigated governance mechanisms in volunteer-based OSS communities, which they define as organic and autonomous, an area that approaches the background of brand communities to an even greater degree. As they put it “volunteer participation, lack of traditional chains of command, geographical dispersion, and lack of face-to-face interaction” are distinguishing characteristics of the projects studied. They applied control theory, configurational theory and cluster analysis on a number of on-going OSS projects and identified three configurations: Defined Community, Open Community, and Authoritarian Community. Adding to the work of De Noni et al. and their two-dimensional (license agreement and leadership structure) governance configurations, they combine four dimensions of formal and informal control stemming out of control theory (Outcome controls, Behavior controls, Clan control and Self-control) and, after performing cluster analysis, they identify three major governance configurations which can be seen in the table below (Table 3). Table 3. Open Source Project Governance Configurations (Di Tullio and Staples, 2013) 28 The authors conclude that “the Defined Community configuration had the most positive climate and most effective coordination, and the Authoritarian Community was the lowest on these variables. […] In the majority of cases, the configuration with the lowest scores was the Authoritarian Community configuration, except for self-control. The Open Community configuration was typically between the other two. These patterns suggest a positive relationship between outcome, behavior, and clan control and governance outcomes.” The final paper to be presented is from Shah (2006). In this paper the author attempts a differentiation between two OSS communities with contrasting governance models, a separation between gated and open governance. While both of these communities are functioning under the principles of OSS development and aim to attract volunteer developers, Shah explains their difference: “in the open source community, anyone can download, use, modify, and distribute the code. The code is owned by the collective and a special subset of developers, called committers, settle contested project decisions. In the gated source community, only those who have agreed to a license with the corporate sponsor can download, use, or modify the code. The license stipulates that the code may only be shared with other licensees. The corporate sponsor owns the code and retains the right to make project decisions. Finally, licensees who use the code for commercial purposes must pay a royalty to the corporate sponsor”. It is clear that while the background of the form of participation remains the same between these two types of software development, gated communities are aiming to integrate private ownership and control of the code produced. The most relevant finding of Shah is the relationship between the governance model and volunteer participation. Shah distinguishes between two sets of volunteers, namely hobbyists and need-driven participants, and while their motives for participation vary to a great extent, the governance structure of the community affects the participation choices of the volunteers in a dramatic fashion. Participants in the gated community seemed to be affected negatively by “the level of code control held by the sponsor (the sponsor is the only actor able to make changes to the source code) and ownership by the corporate sponsor” (Shah, 2006). Ownership from sponsors seem to raise a number of issues, with restrictions on code use, fairness on decisions on code use and distribution, issues stemming out of ownership status and problems on the commercial use clause of licenses being the main reason behind participants choosing not to contribute to the communities. Thus Shah claims that these restrictions limit “cumulative development activity and overall value creation” concluding that “firms seeking to construct hybrid arrangements that balance community-based value creation with private value appropriation may encounter difficulties: the very mechanisms that allow them to appropriate private benefits may deter participation” (Shah, 2006). 29 This concludes the literature review part of this paper. The following two chapters will present the conceptual framework of research as well as the methodology followed, highlighting the connections between existing literature presented in this chapter and the constructs and relationships that this paper aims to study. 3. Conceptual Framework This part will introduce the conceptual model with the relationships that research seeks to examine. In the figure below (Figure 8), the red dotted shape represents the main focus of this paper, namely the effect of the governance configurations on the constructs included as well as the relationships between brand community identification and brand community engagement, brand community identification and brand community commitment and finally, brand community engagement and the members’ behavioral intentions. The constructs outside of the model represent relationships already examined by existing literature, all of which exhibit a proven positive correlation. They are included in the model to show the extent of managerial implications that can be extracted from this research. The following subchapters will introduce the problem statement of this paper, followed by a thorough presentation of the constructs and their relationships as seen in existing literature. Figure 8. Conceptual model: the effect of governance configurations in the area inside the dotted lines 30 3.1. Problem Statement The main objective of this paper is to examine the effect of different governance models on the abovementioned constructs and their relationships. Specifically the questions that research aims to answer are: 1. How do different governance models affect brand community identification, brand community engagement, brand community commitment and the members’ behavioral intentions in brand communities formed in the social media? 2. How do different governance models affect the relationships formed between these constructs? 3.2. Brand Community Identification (BCI) Brand Community Identification (BCI) is a relatively studied term in the brand community literature. It refers to a sense of belonging in the community, translating into a tendency to use the term “we” instead of “they” when referring to other members, what Muniz and O’Guinn (2001) refer to as “consciousnessof-kind”. According to Chang et al., 2013, “Brand community identification (BCI) marks the strength of the social relationship within the community”. Algesheimer et al., 2005 point out that BCI represents the strength of the consumer’s relationship with the brand community “whereby the person construes himself or herself to be a member— that is, as “belonging” to the brand community. In contrast to other identities, which may render a person unique and separate, this is a shared or collective identity (Bhattacharya, Rao, and Glynn 1995; Tajfel and Turner 1985).” Zhou et al. clarify the notion even more by stating that “Brand community identification stems from group identification, a specific social identification form in which people define themselves by their group membership (Mael & Ashforth, 1992). […] Brand community identification results in commitment to the brand community, a psychological bond describing a member's relationship with the group (Meyer & Allen, 1991).” (Zhou et al. 2012). Social identity formation is a moving force behind BCI. Wirtz et al. (2013) mention that “People generally strive for positive self-esteem, and such esteem can be derived from social group membership. Social identity is maintained and strengthened in social group members through in-group, out-group comparisons (Hughes and Ahearne, 2010).” 31 In line with existing social identity as well as brand community literature, BCI should be approached taking into consideration three components: cognitive, evaluative and affective identification.(Zaglia 2013; Dholakia et al. 2004; Algesheimer et al. 2005; Marzocchi et al. 2013). Cognitive identification refers to the degree to which members find similarities between them and other members, and differences when it comes to “outsiders”. Evaluative identification refers to “the positive evaluation of self-worth that stems from a relationship with the brand” (Algesheimer et al. 2005), in other words, the group’s “self esteem”. Finally, affective identification represents the “positive emotions experienced by individuals on the basis of their perceived belonging to the group, and positive emotions towards other group members (Bergami & Bagozzi, 2000)” (Zaglia 2013), which translates to a sense of emotional involvement with the group. It is thus important to understand the impact of BCI regarding the functions of a BC. According to Algesheimer et al (2005) “identification means that the consumer agrees (or strives to agree) with the community’s norms, traditions, rituals, and objectives (Bhattacharya, Rao, and Glynn 1995) and promotes its well-being (Wiswede 1998)”. Moreover, members that do identify with the community, tend “to adopt social creativity or social competition and tend not to use individual mobility” as well as support a “greater resistance to brand switching […] high brand community-identifiers tend to perceive negative social identity severely, thereby eliciting brand-defensive actions”. The major importance of BCI lies in the fact that it is a moving force behind members’ actions and intentions. Literature has established well structured dependency links between BCI and a number of community as well as brand-related characteristics. As Fuller et al. (2008) put it, “The identification with the brand community is one of the central determinants of the community member behavior” leading to a positive correlation with notions such as Community Commitment, Community Engagement, WOM, Brand Identification, Brand Loyalty etc. As Scarpi (2010) points out “It should come as no surprise that identification is key to the understanding of brand communities and has an impact on relevant consequences: establishing strong ties with the customers is at the heart of (relationship) marketing.” 3.3. Brand Community Engagement (BCE) Brand Community Engagement (BCE) is a highly relevant and meaningful area in BC research. Brodie (2013), in his attempt to thoroughly investigate the term of engagement mentions that “the MSI identifies “customer engagement” as a key research area contributing to enhanced academic insight into consumer behavior in complex, interactive and/or co-creative environments.” 32 The relevance of BCE can be understood when taking into consideration the outcomes towards the brand itself. According to Wirtz (2013), “Active engagement in the form of membership continuance, participation, and giving and receiving recommendations from other OBC members translate into brand loyalty and customer advocacy (Algesheimer et al., 2005). Consumers who join and actively participate in such BCs tend to increase in their willingness to adopt a firm’s new products and are less likely to embrace competing products (Thompson and Sinha, 2008).” Community engagement is interrelated with community identification; high degrees of identification with a BC serves as an introduction to participation intention and finally behavior. According to Wirtz (2013), “OBC engagement refers to the positive influence of consumers identifying with an OBC. This is defined as the consumer’s intrinsic motivation to interact and cooperate with community members. OBC engagement suggests that members are interested in helping other members, keen to participate in joint activities, to act volitionally in ways that the community endorses, and in ways that enhance the OBC’s value for themselves and others (Algesheimer et al., 2005).” Algesheimer’s paper cited in Wirtz’s work adds that “Community engagement suggests that members are interested in helping other members, participating in joint activities, and otherwise acting volitionally in ways that the community endorses and that enhance its value for themselves.” Community engagement which functions in a similar way to consumer engagement (when instead of a community it refers to brand/product/service engagement), has been approached through a number of perspectives. Brodie (2013) argues that BCE is “an interactive, experiential process, based on individuals' engagement with specific objects (e.g. brands, organizations), and/or other brand community members”. In the same paper, engagement is seen as a configurational term, comprising of 5 themes: a. Interactive experiences between consumers and/or other actors: consumer-to-consumer (C2C) interactions in brand-related chat rooms or blogs, firm/consumer interactions through online feedback forms b. Context-dependent, motivational state: specific intensity level at a given point in time, e.g. perceived utility value and interest outweigh the level of perceived risk. c. Transient engagement states, within broader, dynamic, iterative engagement processes, aggregation of focal engagement states, broader processes describing individuals' engagement with particular brands over time. d. Cognitive, affective and behavioral dimensions, cognitive “absorption” and emotional “dedication e. Central role in the process of relational exchange: other relational concepts act as engagement antecedents and/or consequences in dynamic engagement processes occurring within the BC, 33 relational consequences of engagement may act as antecedents in subsequent engagement (sub) processes and/or cycles Brodie goes on to describe BCE as involving “specific interactive experiences between consumers and the brand, and/or other members of the community […] a context-dependent, psychological state characterized by fluctuating intensity levels that occur within dynamic, iterative engagement processes. Consumer engagement is a multidimensional concept comprising cognitive, emotional, and/ or behavioral dimensions, and plays a central role in the process of relational exchange where other relational concepts are engagement antecedents and/or consequences in iterative engagement processes within the brand community” and finally concluding that it is “an interactive, experiential process, based on individuals' engagement with specific objects (e.g. brands, organizations), and/or other brand community members.” (Brodie, 2013) Therefore BCE can be defined as the intention and finally behavior of interactive participation in the BC, stemming from a high degree of BCI. 3.4. Brand Community Commitment (BCC) Brand Community Commitment (BCC) indicates the “members’ desire to maintain their relationships with the brand community” (Zhou et al. 2012). It is a term that is separate from BCE in the sense that it is concentrated on the intentions to have an ongoing relationship with the community, regardless of specific behaviors. Community commitment is an important driver for the well-being of a community, with even bigger importance regarding online brand communities. It translates in a sense of loyalty and inspires a number of brand related perceptions, such as brand commitment and brand attachment (Zhou et al. 2012). Furthermore, according to Wirtz (2013), “The long-term survival of an OBC depends greatly on its members’ commitment and continued participation in the community relationships. Such commitment and participation are particularly important in the online context, as members can switch to an alternative OBC with just a few easy clicks. To ensure vitality and longevity, members need to be cohesive and have a strong sense of belonging (Wellman and Gulia, 1999)”. 3.5. Members’ behavioral intentions The intentions studied in this paper come from the work of Algesheimer et al. (2005) with the addition of an intention construct created in order to assess the intention of members to share their ideas. Specifically the constructs studied are: 34 1. Membership Continuation Intentions (MCI) 2. Community Recommendation Intentions (CRI) 3. Community Participation Intentions (CPI) 4. Intention to Share (ITS) Algesheimer et al. (2005) establish a positive relationship between brand community engagement and the behavioral intentions of the members which, as they mention, are “crucial to perpetuate the brand community, to attain goals, and to create an effective marketing program”. These behavioral intentions are theorized as leading to their perspective behaviors, meaning that the members who express an intention to continue their membership, recommend the community and participate in the community, are very likely to proceed with behaving accordingly. 3.6. Brand outcomes Algesheimer et al (2005) provide with a significant link between brand loyalty and membership continuance intentions. Thus, the higher the intentions for continuing membership in a brand community, the higher brand loyalty will be. Zhou et al (2012) also found a positive relationship between brand community commitment and brand attachment as well as between brand community identification and brand identification. The above make clear that the present framework can be projected into a wider model, including relationships with brand related constructs, providing with a number of managerial implications. 4. Methodology This part will present the methodology followed in this paper. It constitutes of seven sub-chapters. The first will present the research philosophy through the ontological and epistemological background of the researcher. The following will concentrate on the more specific methodological approach of the research, from the research setting to specific questionnaire items and sample characteristics. 4.1. Ontology and epistemology Ontology refers to the researcher’s view of reality, their positions on how the world around them operates. Ontologically, this paper follows a positivistic paradigm, under which the studying of social sciences follows the principles of natural sciences. Positivistic studies aim to “discover and document universal causal laws of human behavior”, and while “social reality is not random; it is patterned and 35 has order”, the aim is not to predict the actions of a specific person in a given situation, but to document that “under conditions X, Y, and Z, there is a 95 percent probability that one-half of the people will engage in a specified behavior” (Neuman, 2006). The use of an experiments and surveys as the main instrument of research, supplemented by a statistical analysis of the data are some of the main characteristics of positivistic research (Neuman, 2006). Moreover, in this study and in comparison to other research paradigms (e.g. social constructivism), brand communities are not seen as social creations that are given “life” through human interactions, but as objectively true and existing entities that follow a set of rules similar to the natural laws of the world. In this research, the steps followed will be problem statement formation and testing, and argumentation will be presented regarding the validity, reliability and generalizability of the results. 4.2. Research Setting This study uses a questionnaire consisting of four community descriptions (one of each is randomly presented in every participant) followed by a number of items common for all participants. The following parts will describe the setting of the research. Starting with the more general setting (the choice of Facebook groups representing communities and the main elements that form the community descriptions) the chapter will narrow down to the presentation of the specific configurations to be studied as well as the final descriptions offered to the participants. 4.2.1. Facebook groups Due to the fact that this study is concentrating on the outcomes of different governance mechanisms, finding a number of “offline” brand communities that embody these governing models was very challenging and possibly not accomplishable in a master thesis context. Social media provide with a convenient setting for research. The fact that participants can enter the study being already familiar with the terms stated in a questionnaire, as well as the fact that the questionnaire itself is offered to a great extent through social media, makes Facebook an ideal platform for conducting this kind of research. Zaglia’s 2013 paper, titled “Brand communities embedded in social networks”, presented earlier in the literature review, has served as an inspiration in order to examine the different brand community characteristics under the prism of Facebook groups. 36 This paper is very helpful in providing a distinction between a Facebook group and a Facebook page, what she refers to a sub-groups in the setting of social media brand communities. Zaglia writes that “Specifically, the perceived membership due to consciousness of kind and social identity is more distinct in the group than on the fan page; in addition group members feel a higher moral responsibility and find better fulfillment of their need for information.” With the above into consideration, a Facebook group provides with a clearer image of a brand community. Moreover, using only the characteristics of one of the two sub-groups in the BC descriptions of the questionnaire, would provide a greater degree of validity: participants will not have to distinguish between a group and a page and be aware of the differences they exhibit. While Zaglia mentions that “Consequently, Facebook pages and groups are comparable to marketergenerated and consumer-generated brand communities (Sung et al., 2010)” it was of great importance to this study to distinguish between a brand-generated and a customer-generated Facebook group, in order to include the ownership-governance characteristic. Further research proved that the above does not serve as a rule but more as a tendency: user and brand generated Facebook groups do exist and can be easily distinguished. Zaglia reinforces the choice of a Facebook group as a research setting by providing more connections. She writes “the Facebook group, certainly states a clear brand community, showing strong value of all community markers, social identity, brand emotions, and the commercial character. The fan page, on the other hand, seems to embody a weaker form of a brand community” (Zaglia, 2013). With the above into consideration, the Facebook group became the sub-group of choice for this research. 4.2.2. Group Descriptions The following part of the description was common for all four groups: “Please read the following description carefully and try to remember it while completing this questionnaire. Imagine yourself as a member of an online brand community, a group that consists of admirers and fans of a particular brand. The community members feel an important connection with this brand. The community is a place where each member shares experiences, opinions and interests about the brand.” The four different descriptions that were formed by combining the open/closed governance models with the organic/synthetic models can be found in the appendix (Appendix 2). The differentiations between the models are presented below. 37 4.2.3. Describing the Open/Closed models One can easily find the privacy settings for groups by visiting the “help” section of Facebook.com. In order to provide with four different types of brand communities, distinguished by governance configurations in terms of ownership and openness, it was important to pick the two extremes in terms of privacy. For this reason, the two settings finally chosen were “Public” and “Secret”, due to the fact that “Closed” privacy options constitute more of a slightly modified “Open” privacy setting, as can be easily seen in the following table (Table 4). Table 4. Privacy settings of Facebook groups (2014) Using the above settings to represent governance in terms of openness had positive but also negative effects. While the settings provide a good representation of an open versus a closed governance model, as well as a sense of familiarity for Facebook users, the settings do have limitations in expressing aspects 38 of governance, making it harder to project the results to real-life brand communities as well as missing certain elements of governance. In order to address these issues some settings were depicted in a more descriptive way, covering as much characteristics as possible but trying to avoid possible bias. Additionally, a number of characteristics stemming from the open/closed classifications presented in the OSS project part of the literature review were implemented. The characteristics needed to be relevant to the research setting. Drawing inspiration from Laat and De Noni, and the democratic-organic versus autocratic-mechanistic classification, as well as the distinction between open and gated communities presented by Shah, the descriptions included modified sentences aiming to provide the image of two distinct governance models: an open, more democratic model against a closed, more autocratic model. The main differentiations were implemented on the leadership and decision making mechanisms. Voting is an integral part of the open model both in the appointment of the administrators and the decisions made, while leadership in the closed model is appointed from the outside (the company or the people who created the group) and the administrators have all decision power. The open group is free of content control as well as barriers of entry, while the closed group has a detailed set of rules in these functions. The following is the final descriptions regarding of the open and closed models. The two items in brackets in the closed model description are interchangeable depending on the organic/synthetic distinction which will be presented in the next part of the paper: OPEN: The group is open for everyone to join; no invitation is required. The group and its content are visible to everyone, both members and non-members. Members choose the administrators of the group through voting. Members are free to post anything they like in the group, and no administrator approval is required. The content does not have to be on a particular subject to be posted. There are no established rules in relation to entering the group, posting and commenting. Decisions are made through voting by the members. CLOSED: The group is secret and can only be joined by invitation. The group and its content are hidden, only members can see the name of the group, its members, the group's description and posts. [The administrators are company employees and are appointed by the company (synthetic). The creators of the group are self-appointed as administrators (organic)]1. Administrators take all decisions regarding the group, so you will not be consulted about any decision-making. All content requires administrator 39 approval. Content needs to be on subject and relevant, otherwise it will not get published. The administrators have developed a detailed set of rules regarding entering the group, posting and commenting. 4.2.4. Describing the Organic/Synthetic models As mentioned above, Groups can be initiated by fans and customers, as well as the brand itself. As seen in the literature review part, both brand communities and OSS communities exhibit this particular characteristic, namely the distinction between a company-initiated and a customer-initiated community. Lack of research in this specific area led to the use of this characteristic, thus forming four groups. In order to provide a clear distinction between the two, and in an attempt to identify the different outcomes depending on “group ownership”, the Facebook groups were clearly distinguished under this term. Specifically, the descriptions of Open/Organic and Closed/Organic groups included these sentences: “This community has been established by a couple of fans of the brand who act as administrators.” “Members choose the administrators of the group through voting” (open) OR “The creators of the group are self-appointed as administrators” (closed) Similarly, the descriptions of Open/Synthetic and Closed/Synthetic groups included these sentences: “This community has been established by the company that produces the brand.” “The administrators are company employees and are appointed by the company” 4.3. Questionnaire items This part will present the questionnaire items used in order to approach the constructs relevant to the study. The items will be presented in turn of appearance in the questionnaire: first the items used in association with Brand Community related constructs, followed by the items referring to the demographics. 40 4.3.1. Brand Community items The Brand Community related items in the questionnaire were mainly taken from Algesheimer et al. 2005 and Zhou et al. 2012, with the exception of two newly created items regarding sharing/participation intentions. The items were formulated as Likert-type agreement statements anchored by 1= “strongly disagree” to 7= “strongly agree”. Small modifications were made to the original items, taking care not to alter the original content of the questions. Specifically the verbs were transformed to conditional using “would” instead of present tense given the experimental character of the questionnaire, and “brand community” and its variations were substituted by “group” to make the items more specific to the Facebook group setting (see appendix). Specifically: The Community Identification construct was estimated using 5 items from Algesheimer et al. 2005 (e.g. “I would be very attached to the group”). Community Engagement was estimated using 4 items from Algesheimer et al. 2005 (e.g. “I would benefit from following the group’s rules”). Community Commitment was estimated using 5 items from Zhou et al. 2012 (e.g. “I would feel a loss if that group was no longer available”). Intentions were estimated using 6 items from Algesheimer et al. 2005 (e.g. “It would be very difficult from me to leave this group”) as well as 2 new items regarding sharing/participation intentions with the expected relationships also tested for significance (e.g. “I would be willing to share my ideas with the members of the group”), used in order to identify and assess the intention of members to participate in new product development. A more thorough presentation of the items as well as the modifications on some of them in order to be applicable in the study can be found in the appendix (Appendix 1). 4.3.2. Demographics Items regarding demographics were included in the questionnaire. Specifically the items were three: gender, age and level of education. The gender item comprised of two possible responses, i.e. Male/Female. The Age item was an open text response item. 41 Level of education had three possible responses of an obtained level of education, High school degree, University or College degree and Master or PhD degree. 5. Analysis This part will describe the process followed in the analysis. The first chapter will briefly present the sample characteristics, followed by the descriptive analysis, the construct analysis and finally, the group comparison. 5.1. Sample characteristics The questionnaire was available from the 17th of September 2014 until the 15th of October 2014. Total participants in the questionnaire were 413, out of which 223 (approximately 53.7%) reached the end answering all available questions. The tool used for questionnaire creation was Qualtrics (found at http://www.qualtrics.com), a very practical and easy to use software with license provided by Aarhus University. Out of these 223, a number of 56 received the Open-Synthetic description, 60 received the Open-Organic, 55 received the Closed-Synthetic and 52 the Closed-Organic. After removing the 18 participants who responded negatively in the question “Have you read the above description carefully?” the remaining 205 respondents represent the sample of this paper and are distributed as seen below (Table 5): Table 5. Number of participants per group Number of Description respondents Open-Synthetic 50 Open-Organic 54 Closed-Synthetic 51 Closed-Organic 50 42 5.2. Descriptive statistics This section applies descriptive statistics in order to describe the sample characteristics. Age of the group ranged from 18 to 58 (M=27.26 +4.61). Specifically the mean age of males was 27.75 (+4.9) and of females 26.83 (+4.27). As can be seen in the table below (Table 6) from the sample of 205, males were represented by 101 (49.3%) and females by 104 (50.7%). Moreover, 26 participants (12.7%) have obtained a high-school degree, 107 (52.2%) have a University or College degree and 72 people (35.1%) have obtained a Master’s degree or a PhD. Table 6. Sample demographics Gender: Male 101 49.3% Female 104 50.7% High school 26 12.7% University degree 107 52.2% Master’s degree or Phd 72 35.1% Level of Education: 5.2.1. Distribution Due to the relatively small number of participants in each of the four groups, and because of the configurational character of the governance mechanisms, the models were divided in a 2x2 matrix, the Open-Closed and the Organic-Synthetic categories. Sample characteristics as well as the group comparison to follow, will be performed under this classification. One way ANOVA showed a normal distribution of gender (Open-Closed ρ=.489, Organic-Synthetic ρ=.901) and education level (Open-Closed ρ=.947, Organic-Synthetic ρ=.365) within the two groupings. Chi square test exhibited similar results on the distribution of age (Open-Closed: χ2(2)=1.457 ρ=0.483, Organic-Synthetic: χ2(2)=4.744 ρ=0.093). The results can be seen in Table 7. 43 5.3. Construct internal consistency Reliability was approached by calculating Cronbach’s alpha for each of the constructs’ items (Table 8). Cronbach’s alpha estimates the reliability of a scale by providing input on how closely related the items used to form a construct are. Items that are internally consistent are expected to produce similar scores between them. Table 7. Sample characteristics per group Education level Age Governance Group Gender (% within group) N (=205) Mean SD Male Female High school Master’s/ University Phd Open 104 27.3 5.02 51 53 9 (18.0%) 22 (44.0%) 19 (38.0%) Closed 101 27.2 4.16 50 51 4 (9.0%) 33 (66.0%) 13 (26.0%) Organic 104 27 3.99 48 56 5 (9.3%) 28 (51.9%) 21 (38.9%) Synthetic 101 27.5 5.18 53 48 8 (15.7%) 24 (47.1%) 19 (37.3%) Note: SD=standard deviation Table 8. Construct reliability Number of Construct items Cronbach’s α Brand community engagement 4 items 0.783 Brand community identification 5 items 0.844 Brand community commitment 5 items 0.875 Membership continuance intention 2 items 0.765 Community recommendation intention 2 items 0.791 Intention to share 2 items 0.782 community participation intention 1 item N/A Note: N/A= not applicable 44 With a Cronbach’s alpha value higher than 0.7 (Pallant, 2005), all constructs exhibit an acceptable degree of internal consistency. Notably, the newly introduced construct of Intention to share (ITS) exhibited similar internal consistency to the other already established constructs. Community participation intention (CPI) comprises of one item and thus no further testing has been performed. Further analysis revealed one item that if excluded would potentially raise the internal consistency of the BCC scale (item “The relationship I would have with that group would be one I intend to maintain indefinitely”), but with the effect of its exclusion on Cronbach’s α being relatively low and a somewhat high total correlation (r=.521) with the scale, the item was finally maintained. 5.4. Model Estimation Means and standard deviations were calculated for each of the constructs in order to compare the differences between the four groups, as seen in the table below (Table 9). An independent samples t-test was performed in the group pairings in order to compare means. The ttest was chosen over the one-way ANOVA due to the test being performed in pairs of groups, thus the two tests would give identical results, with the t-test being an easier test to perform (Pallant, 2002). The analysis was significant for the Community recommendation intention (CRI) construct (F(1,203)=.061, p=.003). This result signifies that participants in the groups governed by an Open model established a higher degree of intention to recommend the group to non-members. No other results were of significance in the first level of group comparison. The newly introduced construct Intention to share (ITS) performed poorly in the mean comparison analysis, establishing close to identical means between the governance models (participants were equally willing to share their ideas in all governance models). This result contradicts the author’s belief that an open governance model would generate a higher degree of willingness to share from group members. The second step of group comparison is the use of partial least square (PLS) analysis. In PLS the two main interests of analysis relevant to the study lay in the estimation of path coefficients and the determination coefficients (R2) of endogenous latent variables. 45 Table 9. Construct means and standard deviations for each group OPEN CLOSED ORGANIC SYNTHETIC (N=104) (N=101) (N=104) (N=101) Constructs Mean SD Mean SD t-value Mean SD Mean SD t-value BCE 4.45 .97 4.24 1.33 1.257 4.44 1.15 4.25 1.16 1.226 BCI 4.31 1.04 4.37 1.30 -.369 4.32 1.16 4.37 1.19 -.322 BCC 3.83 1.15 3.74 1.34 .525 3.85 1.17 3.73 1.32 .704 MCI 4.04 1.25 3.88 1.37 .854 4.00 1.27 3.92 1.36 .482 CRI 4.46 1.18 3.92 1.36 2.995* 4.25 1.32 4.13 1.28 .691 ITS 4.87 1.28 4.92 1.38 -.246 4.86 1.30 4.94 1.35 -.456 CPI 4.45 1.35 4.21 1.44 1.250 4.37 1.37 4.30 1.43 .349 Note: SD=standard deviation; t-values were obtained by performing the independent samples ttest; *significant at the <0.05 level, BCE=brand community engagement, BCI=brand community identification, BCC=brand community commitment, MCI= membership continuance intention, CRI=community recommendation intention, ITS=intention to share, CPI=community participation intention. The t-values and the significance of the structural coefficients were computed for each path by means of a bootstrapping procedure using 500 subsamples (Chin, 1998). Inspection of the paths revealed that all the relationships turn out statistically significant in all governance models examined. The t-values of the relationships exceeded the t > 3.29, p < 0.001 threshold for each model separately. The R2 value was calculated in order to determine the explanatory power of the underlying models. Literature supports that an R2 value of 0.67 is considered substantial, of 0.33 moderate and of 0.19 weak (Chin, 1998). For all governance models, most of the R2 values were relatively high, suggesting a substantial explanatory power of all the underlying models. The lowest R2 values were recorded for the 46 BCE->MCI, the BCE->CRI and the BCE->ITS relationships with the Synthetic and Closed models explaining the relationships substantially better than the Organic and Open models accordingly. The differences in the path coefficients between the two groups were further inspected, following Henseler’s (2009) approach on multigroup analysis. While the path differences between the OpenClosed models were expected to be higher than the ones observed in the Organic-Synthetic distinction, this was not the case. Furthermore, analysis found no significant difference on the effect of governance mechanisms on the construct relationships (no value in the group comparison exceeded the t>1.96, p<0.05 threshold). Thus it can be concluded that the governance differentiation in terms of openness and initiation party do not seem to alter the relationships studied. The results of the second part of group comparison can be seen on Table 10. 6. 6.1. Discussion Theoretical and Managerial Implications One important implication has been identified after analyzing the results: an open governance model proved to generate a higher degree of community recommendation intention, meaning that members were more likely to recommend a Facebook group functioning under an open governance model to nonmembers, than the members of a Facebook group adopting a closed governance model. Intention to recommend and its perspective behavior are very relevant concepts in marketing, as positive word-of-mouth has been proven to attract customers and facilitate growth. Online word-ofmouth has been a matter of research, with De Valck et al. (2009) and Chatterjee (2001) supporting that word-of-mouth exhibits the same characteristics in both its online and offline presentations. Thus, an open governance model favoring the creation of positive word-of-mouth represents a finding with possibly numerous implications, both theoretical and managerial; applying an open governance model and thus getting members to recommend a brand community to non-members could be regarded as a strategy towards membership growth. 47 Table 10. Paths and group comparisons Group Comparison Group Comparison Synthetic Organic Open Relationship Path t-value R2 Path t-value R2 |diff| BCE->MCI 0.37 3.38* 0.133 0.53 6.56* 0.277 0.16 1.18 BCE->CPI 0.64 9.55* 0.405 0.70 13.58* 0.484 0.06 BCE->CRI 0.43 3.94* 0.179 0.62 11.09* 0.387 BCE->ITS 0.45 4.79* 0.197 0.51 6.22* BCI->BCC 0.56 5.38* 0.303 0.72 BCI->BCE 0.64 11.19* 0.418 0.66 Closed p-value p-value (2- (2- t-value tailed) |diff| t-value tailed) Path t-value R2 Path t-value R2 0.241 0.43 5.42* 0.180 0.45 4.34* 0.203 0.02 0.15 0,874 0.71 0.476 0.62 10.08* 0.383 0.71 12.31* 0.513 0.09 1.07 0,283 0.19 1.55 0.123 0.47 6.86* 0.212 0.56 5.84* 0.316 0.09 0.79 0,428 0.255 0.06 0.50 0,616 0.46 5.59* 0.211 0.50 5.41* 0.256 0.04 0.29 0,766 14.50* 0.523 0.16 1.43 0,153 0.60 9.49* 0.350 0.70 8.34* 0.485 0.1 0.93 0,351 11.83* 0.446 0.02 0.22 0,821 0.60 10.23* 0.357 0.69 12.79* 0.482 0.09 1.07 0,285 Note: t-values were obtained by performing the independent samples t-test; *significant at the <0.001 level, BCE=brand community engagement, BCI=brand community identification, BCC=brand community commitment, MCI= membership continuance intention, CRI=community recommendation intention, ITS=intention to share, CPI=community participation intention. 48 While, as will be further discussed later on, the results might not be generalizable to a great extent, the above result validates a notion that seems to have a cognitive basis. An open governance model, free of complicated rules and restrictions, does appear to be create more ground for recommendation than a closed and restricted model of governance. Managers can draw from this relationship and favor the formation of more open oriented groups when organizing brand communities in the social media, maximizing the extent of community recommendation. A further theoretical implication of this paper has been an empirical validation of the pre-existing conceptual models containing the relationships between brand community related constructs. The implications are two-fold: the conceptual model was formed after combining constructs which were previously studied independently [Algesheimer et al. (2005) and Zhou et al. (2012)], thus a validation of the relationships provides theoretical support for two previously proposed models, and the applicability on the social media provides with further proof that indeed, brand communities in the social media share a variety of characteristics with what we call real-life brand communities. With all paths between constructs proving to be significant, the conceptual model exhibited a high degree of consistency for all the governance models, thus the results were of similar significance for all four groups. The analysis has not being able to successfully identify further significant relationships between the governance models in terms of the constructs studied, which can be interpreted in a number of ways. The next part will provide discussion on this subject, offering a basis for argumentation on the reasons that led to these results. The line of argumentation is that the above results do not undoubtedly prove a lack of relationship between governance configurations and social media brand communities constructs, but it is possible that a combination of limitations led to the results of the research. 6.2. Limitations and future research The main flaw which may have had a direct outcome in the results of the analysis has been the limitations of the ways governance can manifest in the Facebook group setting. This raised a number of issues, mainly in the way that the governance models needed to be presented to the participants of the survey. While literature supported the existence of brand communities in social media, and groups in Facebook indeed provide with a representative image of online brand communities, the pre-existing privacy settings produce a wide array of limitations. The descriptions generated needed to provide a baseline representation of governance configurations which, under the existing privacy settings which could not be altered, can be seen as being limited and possibly not able to create a meaningful differentiation in terms of the constructs studied. Furthermore, there is a possibility that while these 49 governance models may indeed have a significant effect on the relationships between the constructs studied in real-life brand communities, the same may not be the case in communities formed in the social media where governance might have a less significant presence. A second limitation has been the means of research followed, as previously discussed in the methodology part of the paper. The use of an experimental questionnaire was the selected means of research due to two main reasons: avoiding biased results and resource management. Applying the same items on existing brand communities in the social media would carry a number of uncontrollable and inestimable factors such as personal relation with the brand, social relationships between the members and so on. Moreover, the possibility of finding brand communities in the social media following the exact governance mechanisms studied would have ranged from low to non-existent; the aim of this paper was to study the extremes in terms of the open-close classification when most groups are established and functioning with a combination of mechanisms. While these factors have been avoided, it came in the expense of having to ask participants to imagine a variety of characteristics, which in turn resulted in unfavorable results, possibly explained by a lack of relating to the descriptions. The lack of reportable results, especially when focusing in the organicsynthetic distinction, point more to the above problem, than to a lack of effect of the formation of ownership to the model: providing adequate and distinctive characteristics for this specific differentiation has been very demanding in this research setting. Drawing from the limitations presented above, future research could concentrate in the elimination of such effects and study the effects of governance on real life brand communities, or aim at a larger sample and alternative methodology for social media brand communities. Moreover, drawing from other streams of theory in order to categorize governance mechanisms would be an interesting concept. Community governance can be seen from a multitude of perspectives and combining a variety of theoretical streams could lead to more specific and generalizable results. 7. Conclusion Brand communities represent a newly identified and researched entity in marketing and social studies and, as such, a still underexplored notion. With customers actively taking part in innovation and new product development processes, it is expected that numerous characteristics will be identified and that the customer-centric model of brand community proposed by McAlexander et al. (2002) will be in the center of attention for the foreseeable future. With this in mind, this study had the ambition of identifying the characteristics of the connection between governance and brand communities, and fill 50 in a gap by identifying an aspect of brand communities that literature had not addressed thoroughly up to now. A freshly introduced idea explored in this paper has been the application of OSS governance principles in brand communities formed in the social media. While it is possible that other governance mechanisms could potentially provide with stronger links and produce additional implications, the process of projecting these principles across theoretical streams was both exciting and demanding. It is the author’s view that brand communities can prove a welcoming ground for further interdisciplinary theoretical applications, given the variety of social and cultural grounds they cover. It is highly possible that there is a wide array of unidentified interactions between governance mechanisms and brand communities. While brand communities are indeed formed by fans and followers of brands, and thus the character of membership is almost purely volunteer based and without a clear goal-oriented process, brand communities do exhibit signs of hierarchical decision making, modularization and division of roles, as seen in the literature review. Similarly, training and indoctrination of members does seem to take place, if not in the traditional skill-establishing way, surely in the process of familiarization with the rituals and traditions that a brand community holds. With literature proving that brand communities are formed online in a similar manner as they do offline, an idea that has been also validated in this paper, the above connections might be more blurry to recognize and operationalize in the social media but they are still existent. This study employed quantitative analysis in order to identify the effect of different governance configurations in the perceptions and intentions of the members of brand communities. In the process, a comprehensive literature review was presented to the reader in order to establish a valid point of departure. It was the authors aim to access and present as much information as possible, thus presenting the state-of-the-art in literature in a thorough manner, hoping to reflect the importance of the studied phenomenon. In depth research in the part of the literature review allowed the gathering of essential information for the following parts of the thesis and allowed the author to choose the most relevant constructs to be studied. An experimental questionnaire was the method that was chosen in order to gather data for the quantitative analysis. This method came with a number of challenges that were addressed thoroughly throughout the paper, with the most important of them being the attempt to produce a vivid and detailed presentation of four hypothetical brand communities formed in the social media. This was indeed a very demanding process, which was equally interesting and difficult to go through. Questionnaire creation follows a great number of detailed and at times unwritten rules, with the smallest of modifications being able to cause a wide range of issues. These characteristics made the process of choosing the right length, 51 phrasing and questionnaire format one of the most interesting procedures while authoring this master thesis. While the final results were not as favorable as it was initially hoped, the study did manage to produce a fair amount of theoretical and managerial implications through a very interesting and highly educative process for the author. Refining the steps taken in the methodology part of the paper along with applying the chosen principles on real-life brand communities can be the object of further studies, which could bring up additional valuable information for managers and researchers and provide with useful reflections on brand community governance mechanisms. 52 8. References Algesheimer, R., Dholakia, U.M. & Herrmann, A., 2005. 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I would benefit from following the group’s rules. 2. I would be motivated to participate in the group’s activities because I would feel better afterwards. 3. I would be motivated to participate in the group’s activities because I would be able to support other members. 4. I would be motivated to participate in the group’s activities because I would be able to reach personal goals. 1. I would feel a loss if that group was no longer available. 2. I would really care about the fate of that group. 3. I would feel a great deal of loyalty to that group. 4. The relationship I have with that group is one I intend to maintain indefinitely. 5. The relationship I have with that group is important to me “Would” is used in order to create conditional verbs. Algesheimer identification Community engagement Community commitment 58 et al. 2005 ”Brand community” is substituted by “group” Same as above Algesheimer et al. 2005 Same as above Zhou 2012 et al. Membership continuance intentions Community recommendat ion intentions Community participation 1. It would be very difficult for me to leave this group. 2. I would be willing to pay more money to be a member of this group than I would for membership in other groups. 3. I would intend to stay on as a group member. 1. I would never miss an opportunity to recommend this group to others. 2. If friends or relatives were interested in joining a facebook group of a brand community, I would definitely recommend this one. 1. I would intend to actively participate in the group’s activities. intentions Sharing/Inno vation intentions 1. I would be willing to share my ideas with the members of the group. 2. I would be willing to share my ideas with the company that produces the brand 59 Same as above plus item 2 has been removed due to irrelevance with the Facebook group setting. Algesheimer “Would” is used in order to create conditional verbs. Algesheimer et al. 2005 et al. 2005 “Automobile brand community” has been substituted by “group” “Would” is used in Algesheimer order to create et al. 2005 conditional verbs. “Brand community” is substituted by “group” New items Appendix 2. Questionnaire 1. INTRODUCTION (common for all participants) Dear participant, Thank you for taking the time to respond to this questionnaire. My name is Spyros Papamichail and I am a student at the Department of Business Administration at Aarhus University. This questionnaire is a part of my master thesis and I would be very grateful if you could spend approximately 7 minutes to respond to the following questions. 2. DESCRIPTIONS (one of four randomly assigned to each participant) Open-Synthetic description Please read the following description carefully and try to remember it while completing this questionnaire. Imagine yourself as a member of an online brand community, a group that consists of admirers and fans of a particular brand. The community members feel an important connection with this brand. The community is a place where each member shares experiences, opinions and interests about the brand. This community has been established by the company that produces the brand. The community is organized as a Facebook Group that operates under the following principles: -The group is open for everyone to join; no invitation is required. - The group and its content are visible to everyone, both members and non-members. -Members choose the administrators of the group through voting. -Members are free to post anything they like in the group, and no administrator approval is required. -The content does not have to be on a particular subject to be posted. -There are no established rules in relation to entering the group, posting and commenting. -Decisions are made through voting by the members. Have you read the description carefully? Yes No 60 Closed-Organic description Please read the following description carefully and try to remember it while completing this questionnaire. Imagine yourself as a member of an online brand community, a group that consists of admirers and fans of a particular brand. The community members feel an important connection with this brand. The community is a place where each member shares experiences, opinions and interests about the brand. This community has been established by a couple of fans of the brand, who act as the administrators. The community is organized as a Facebook Group that operates under the following principles: -The group is secret and can only be joined by invitation. -The group and its content are hidden, only members can see the name of the group, its members, the group's description and posts. -The creators of the group are self-appointed as administrators. -Administrators take all decisions regarding the group, so you will not be consulted about any decisionmaking. -All content requires administrator approval. -Content needs to be on subject and relevant, otherwise it will not get published. -The administrators have developed a detailed set of rules regarding entering the group, posting and commenting. Have you read the description carefully? Yes No 61 Open-Organic description Please read the following description carefully and try to remember it while completing this questionnaire. Imagine yourself as a member of an online brand community, a group that consists of admirers and fans of a particular brand. The community members feel an important connection with this brand. The community is a place where each member shares experiences, opinions and interests about the brand. This community has been established by a couple of fans of the brand, who act as the administrators. The community is organized as a Facebook Group that operates under the following principles: -The group is open for everyone to join; no invitation is required. -The group and its content are visible to everyone, both members and non-members. -Members choose the administrators of the group through voting. -Members are free to post anything they like in the group, and no administrator approval is required. -The content does not have to be on a particular subject to be posted. -There are no established rules in relation to entering the group, posting and commenting. -Decisions are made through voting by the members. Have you read the description carefully? Yes No 62 Closed-Synthetic description Please read the following description carefully and try to remember it while completing this questionnaire. Imagine yourself as a member of an online brand community, a group that consists of admirers and fans of a particular brand. The community members feel an important connection with this brand. The community is a place where each member shares experiences, opinions and interests about the brand. This community has been established by the company that produces the brand. The community is organized as a Facebook Group that operates under the following principles: -The group is secret and can only be joined by invitation. -The group and its content are hidden, only members can see the name of the group, its members, the group's description and posts. -The administrators are company employees and are appointed by the company. -Administrators take all decisions regarding the group, so you will not be consulted about any decision-making. -All content requires administrator approval. -Content needs to be on subject and relevant, otherwise it will not get published. -The administrators have developed a detailed set of rules regarding entering the group, posting and commenting. Have you read the description carefully? Yes No 63 3. ITEMS (common for all participants) Brand Community Engagement Having in mind the description of the Facebook Group, to what extent do you agree with the statements below? Strongly Disagree Agree Somewh at Disagree Neither Agree nor Disagree Somewh at Agree Agree Strongly Agree 1. I would benefit from following the group’s rules. 2. I would be motivated to participate in the group’s activities because I would feel better afterwards. 3. I would be motivated to participate in the group’s activities because I would be able to support other members. 4. I would be motivated to participate in the group’s activities because I would be able to reach personal goals. 64 Brand Community Identification Having in mind the description of the Facebook Group, to what extent do you agree with the statements below? Strongly Disagree Disagree Somewh at Disagree Neither Agree nor Disagree Somewh at Agree Agree Strongly Agree 1. I would be very attached to the group. 2. Other group members and I would share the same objectives. 4. If group members planned something, I’d think of it as something “we” would do rather than something “they” would do. 5. I would see myself as a part of the group. 3. The friendships I would have had with other group members would mean a lot to me. 65 Brand Community Commitment Having in mind the description of the Facebook Group, to what extent do you agree with the statements below? Strongly Disagree Disagree Somewh at Disagree Neither Agree nor Disagree Somewh at Agree Agree Strongly Agree 1. I would feel a loss if that group was no longer available. 2. I would really care about the fate of that group. 3. I would feel a great deal of loyalty to that group. 4. The relationship I would have with that group would be the one I intend to maintain indefinitely. 5. The relationship I would have with that group would be important to me. 66 Members’ Behavioral Intentions Having in mind the description of the Facebook Group, to what extent do you agree with the statements below? Strongly Disagree Disagree Somewh at Disagree Neither Agree nor Disagree Somewh at Agree Agree Strongly Agree 1. It would be very difficult for me to leave this group. 2. I would intend to stay on as a group member. 3. I would never miss an opportunity to recommend this group to others. 4. If friends or relatives were interested in joining a facebook group of a brand community, I would definitely recommend this one. 6. I would be willing to share my ideas with the members of the group. 7. I would be willing to share my ideas with the company that produces the brand. 5. I would intend to actively participate in the group’s activities. 67 DEMOGRAPHICS Genre Are you a: Male Female Education What is the highest level of education you have completed? High School University or College Degree Master’s Degree or Phd Age What is your age? 68
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