Governance Mechanisms, Collective Psychological Ownership and Value Co-Creation in Firm-hosted Online Brand Communities

Abstract

The widespread adoption of digital information technology has prompted many companies to develop online brand communities, enhancing customer engagement and fostering participation in value co-creation. Nonetheless, these communities often grapple with issues like limited control, unregulated sharing, and adverse customer behaviors. This study aims to bridge gaps in the current literature by examining governance mechanisms within firm-hosted online brand communities to understand their influence on value co-creation activities.

Through a combination of theoretical analysis, semi-structured interviews, and Straussian grounded theory, this research delves into the multi-dimensional nature of governance in firm-hosted online brand communities. This study undertakes a comprehensive empirical analysis of two notable communities in China: Xiaomi Community and My Huawei. By using a theoretical framework that integrates the stimulus-organism-response model with the theory of psychological ownership and social identity, this study constructs a theoretical “Storyline”.

After three-stage coding (open coding, axial coding, and selective coding) of interview data and dialogue with existing literature, the main findings are as follows. First, based on theoretical induction using grounded theory, this study proposes that the governance mechanisms of firm-hosted online brand communities is a multi-dimensional concept encompassing rules, relationships, incentives and routines. Second, the four dimensions of the governance mechanisms of firm-hosted online brand communities collectively influence customers’ engagement in value co-creation behaviors. Third, collective psychological ownership plays a mediating role in the relationship between the governance mechanisms of firm-hosted online brand communities and customers’ value co-creation behaviors.