Ready to talk Kakao? The Role of Customer Engagement in Multi-Sided Platforms : On the Pioneering Example of KakaoTalk

Abstract: Background: In the advent of multi-sided platforms defying traditional business models, sustaining long-term scale and success of platforms remains a great challenge to date. At the same time, customer engagement prevails as a superior factor enhancing customer loyalty in the current relationship marketing theory. Hence, utilizing customer engagement as a social tool to attract and sustain users could pose an appropriate answer for the struggles of platform businesses. Purpose: The purpose of this study is to validate context-specific relationships of customer engagement within a nomological network for multi-sided platform settings. By doing so, we particularly want to investigate context- specific antecedents in MSP settings leading to customer engagement and subsequently test its potential outcome of the continued use of the platform. Approach: By employing the pioneering example of Korea’s ubiquitous multi-sided platform KakaoTalk, we constructed a context-specific nomological network around customer engagement based on the platform’s perceived functionalities and characteristics. Applying structural equation modeling, we investigated our theorized path relationships between the major constructs of our research model. Findings: Our results suggested that the theorized context-specific nomological network around customer engagement can be validated in multi-sided platform settings. Hereby, customer engagement functioned as a strong predictor of user loyalty without being influenced by other relational constructs represented by relationship commitments. Additionally, a platform’s utility and especially its social experience embodied substantial factors that initially lead to customer engagement in the first place. Conclusion: Implications for this study contribute to both practitioners and scholars. While platform managers are guided with practical ideas to exploit customer engagement, the general literature of customer engagement is supported with a contextual study validating the applicability of the nomological network around customer engagement in the setting of multi- sided platforms.