This study explores the transformative interplay of social commerce and blockchain technology within the stock market, scrutinising theoretical frameworks and practical implications. Social commerce, blending 'social' and 'commerce', shapes a dynamic digital marketplace, eroding boundaries between interactions and transactions. Simultaneously, blockchain, with its decentralised and secure nature, emerges as a trust foundation in the digital realm. The nexus of these forces redefines finance, introducing heightened security and transparency to social commerce platforms and reshaping the stock market. The study addresses pivotal research questions concerning investor behaviour, predictive analysis, trading strategies, and regulatory challenges. Employing a holistic research methodology, the study contributes valuable insights, bridging disciplines and prompting a re-evaluation of financial models. Envisioning a dynamic coexistence, the review anticipates the transformative potential of this nexus in the evolving financial landscape.
TopIntroduction
In the era of rapid digital evolution, sweeping transformations have enveloped multiple sectors, revolutionizing how we conduct business, engage with one another, and navigate the intricate landscape of financial markets (Laitner & Stolyarov, 2003). At the forefront of this digital renaissance stand two pioneering forces: social commerce and blockchain (Mendoza-Tello et al., 2018). Each of these phenomena has experienced a meteoric rise in prominence, driven by its unique attributes and capabilities, with the potential to redefine the financial industry as we currently understand it (Martasari, 2023). The intricate interplay between these dynamic domains is the epicentre of a profound convergence that promises far-reaching implications for the world of finance. Social commerce, a concept birthed from the synthesis of 'social' and 'commerce,' has engineered a burgeoning digital marketplace where the traditional boundaries between interpersonal interactions and commercial transactions have blurred into obscurity (Farivar et al., 2017; Grover et al., 2023). Within this realm, e-commerce has been thoroughly reinvented to serve as an immersive social experience where consumers, acting both as buyers and sellers, share, collaborate, and transact within a single ecosystem. Social media channels, online communities, and digital networks have become the very fabric of this dynamic platform, giving rise to a novel approach to brand engagement and consumer interaction (Beaumont et al., 2022). The fusion of social commerce and blockchain technology is poised to redefine traditional financial paradigms and, as such, is the focal point of this review. This nexus is characterised by the integration of blockchain's security and transparency into social commerce platforms, introducing a new level of reliability to commercial transactions and enhancing user trust (Wigand et al., 2008). Such integration is profoundly consequential for the stock market, a domain rife with information asymmetry, intricate trading patterns, and investor behaviour. The intersection of these technologies introduces a fresh dimension to the stock market, where investor sentiment can be influenced by social media interactions, and blockchain provides heightened security and transparency for trading and settlement processes (Gao et al., 2018). The implications of this confluence resonate deeply within the realms of market efficiency, investor behaviour, and the ever-shifting dynamics of stock market operations. This review paper embarks on a comprehensive exploration of this transformative nexus, delineating the theoretical underpinnings and practical applications that shape this convergence while shedding light on its profound impact within the context of the stock market.
1.1. Social Commerce: The Digital Marketplace of Engagement
Social commerce, a portmanteau of 'social' and 'commerce,' represents a burgeoning digital marketplace where the boundaries between social interactions and commercial transactions have become increasingly blurred (Ikumoro & Jawad, 2019). It is a realm where the e-commerce experience is inherently social, where consumers share, engage, and transact within a single ecosystem. This dynamic platform leverages the ubiquity of social media channels, online communities, and digital networks to facilitate the exchange of products and services and the creation of an immersive brand experience (Barnes, 2014). Social commerce platforms encompass a diverse array of activities, ranging from user-generated content sharing, peer-to-peer selling, and group buying to influencer marketing and live streaming. The essence of social commerce is rooted in community, trust, and user-generated content, where consumers, acting as both buyers and sellers, actively participate in shaping the marketplace (Curty & Zhang, 2011).