Skip to Main Content
Article navigation
Purpose

Prior research on peer-to-peer (P2P) lending and electronic word-of-mouth (eWOM) has overlooked how eWOM valence ambiguity and the external environment influence the relationship between eWOM volume and platform performance. Based on signaling and information processing theories, this study differentiates various types of eWOM valence ambiguities and examines how these ambiguities, along with the external environment, affect the impact of eWOM volume on P2P lending platform performance.

Design/methodology/approach

Using data from Chinese P2P lending platforms (January 2018–July 2019), econometric analyses evaluate the connection between eWOM volume and platform performance as well as the moderating effects of valence ambiguity and external uncertainty.

Findings

The findings confirm that eWOM volume significantly influences platform performance. However, this positive effect diminishes with high inconsistencies between star ratings and textual eWOM or increased external uncertainty.

Research limitations/implications

This study’s scope is limited to Chinese P2P lending. Future research should explore diverse markets and user engagement through experimental designs.

Practical implications

This study offers practical strategies for P2P lending platforms in emerging markets, emphasizing the importance of managing inconsistencies between star ratings and textual reviews and addressing lenders’ concerns in uncertain signaling environments.

Originality/value

This study advances the understanding of P2P lending and eWOM dynamics by analyzing the interplay between eWOM volume and internal and external factors related to eWOM diagnosability. It highlights how inconsistencies in star ratings and textual eWOM, coupled with external uncertainty, exacerbate decision-making challenges for potential lenders and reduce the positive impact of eWOM volume.

Licensed re-use rights only
You do not currently have access to this content.
Don't already have an account? Register

Purchased this content as a guest? Enter your email address to restore access.

Please enter valid email address.
Email address must be 94 characters or fewer.
Pay-Per-View Access
$41.00
Rental

or Create an Account

Close Modal
Close Modal