Examining social capital and participation in networking sites

Purpose: The purpose of this paper is to understand the internet user behavior, in an online environment, varying due to benefits and risks of social networking sites (SNS). This study focuses on the influence of benefits and risks of SNS on an internet user’s participation and tests the developed research framework. Design/methodology/approach: A conceptual framework has been developed after reviewing relevant literature followed by hypothesis framing. The framework considers two benefits of using SNS, i.e., utilitarian and hedonic benefits, and two risks online, i.e., word-of-mouth skepticism and online privacy concerns, determining the effect of these four variables on online participation and its effect on online social capital. An advanced PLS-SEM has been used to test the research hypothesis and to test framework. This study is based on a descriptive survey and the data have been collected using online questionnaires. The users of SNS have been targeted as respondents using purposive sampling method. Findings: This study proposed a positive relationship of utilitarian benefits with online participation while negative relationship of word-of-mouth (WOM) skepticism, and it affirms that online participation is linked significantly in a positive manner with online social capital. Practical implications: The study is limited to some specific aspects of SNS, and other dimensions may provide newer scope for this research. The research provides a managerial implication, depicting that inculcation of benefit factors and reduction in the risk factors into the SNS or company websites would lead to an increased participation of users. Originality/value: This research signifies the potential for further research and recommends the tactics for companies to use SNS by identifying benefit factors that encourage participation and it also recommends to proactively take steps to minimize effects of potential risks and challenges in an online environment.