Analysing the factors influencing customer engagement and value co-creation during COVID-19 pandemic: the case of online modest fashion SMEs in Egypt

Abstract

Purpose The purpose of this paper is to analyse the factors which influence value co-creation intention through customer engagement during the COVID-19 pandemic. This paper studies the online modest fashion small- and medium-sized enterprises (SMEs) in Egypt as a Muslim country. Design/methodology/approach This paper is based on the social cognitive theory (SCT) and the literature to develop a theoretical framework of the factors influencing customers’ value co-creation intention on social media. The framework is then tested quantitatively through structural equation modelling based on partial least squares method (SEM-PLS) approach using the SmartPLS software. Findings The empirical analysis supported the SCT through the following conclusions: first, regarding the subject factors, self-efficacy has a positive significant effect on all dimensions of customer engagement and outcome expectation has a positive significant effect on cognitive customer engagement. Concerning the environmental factors, community experience has a positive significant effect on affective and behavioural customer engagement, whereas content quality has a positive significant effect on affective customer engagement. Second, customer engagement is a significant mediator through the dimensions of affective and behavioural customer engagement. Practical implications The findings of this study can help online modest fashion SMEs better comprehend the factors which influence the customers’ engagement for value co-creation intention whether it is subject factors or environmental factors. Therefore, they can better operate online and encourage customers to contribute to the development of new products and services and hence achieve a competitive advantage and survive in times of COVID-19. Originality/value Most of the existing studies focused on the value co-creation behaviour and output. However, there is limited research focusing on what contributes to the customers’ engagement for value co-creation intention, especially for online modest fashion and Muslim countries. Therefore, this study attempts to examine and bridge this research gap.