Service providers on highly competitive online outsourcing platforms employ various signals to entice buyers to make online purchases. One such signal—the solution exemplars—attracts attention through depictions of exemplary prior work completed by the service providers. Unfortunately, it is not known the extent to which solution exemplar characteristics affect sales performance nor is it clear how such signals perform in the presence of complementary signals such as service provider expertise. This paper explores these issues.
Extending signaling theory, the authors develop a model to explore the effects of solution exemplar characteristics (i.e. exemplar quantity, exemplar diversity and exemplar popularity) on sales performance under the moderating impact of service provider expertise. The authors test the model using proprietary data from ZBJ.com, a leading online outsourcing platform in China.
Exemplar quantity and exemplar popularity positively affect sales performance; exemplar diversity has no significant impact on sales performance and service provider expertise positively moderates the relationships between exemplar quantity, exemplar popularity and sales performance.
This work makes several significant contributions. First, the authors enrich the research on signals in online outsourcing by exploring the impact of solution exemplar characteristics on sales performance. Second, the authors analyze three solution exemplar characteristics: exemplar quantity, exemplar diversity and exemplar popularity. Third, this work shows that service provider expertise moderates the relationship between solution exemplar characteristics and sales performance. Important practical implications for both online outsourcing platforms and service providers are discussed.
