Platform Dependence, Algorithmic Opacity, and Switching Costs as Determinants of Channel Diversification among Social Commerce Entrepreneurs in Bandung
DOI:
https://doi.org/10.71238/jesvd.v1i01.208Keywords:
Algorithm Opacity; Channel Diversification; Platform Dependency; Social Commerce; Switching CostsAbstract
The increasing integration of social commerce platforms into entrepreneurial activities has generated new business opportunities while simultaneously creating challenges related to platform dependency, algorithmic uncertainty, and switching barriers. This study aims to examine the relationships between platform dependency, algorithm opacity, switching costs, and channel diversification among social commerce entrepreneurs in Bandung, Indonesia. A quantitative research approach with an explanatory design was employed, involving 85 social commerce entrepreneurs selected through purposive sampling. Primary data were collected using a structured questionnaire based on a five-point Likert scale and analyzed using multiple linear regression with SPSS version 25. In analysis, platform dependency demonstrated a positive and significant relationship with channel diversification, while algorithm opacity also exhibited a positive and significant relationship. Conversely, switching costs showed a negative and significant relationship with channel diversification. The regression model explained 39.1% of the variation in channel diversification (R² = 0.391), with platform dependency representing the strongest predictor. These findings suggest that greater platform reliance and algorithmic uncertainty may encourage entrepreneurs to diversify their commercial channels, whereas higher switching costs may restrict such strategies. The study offers a conceptual contribution to digital entrepreneurship and platform ecosystem literature by integrating technological dependence, algorithmic uncertainty, and operational barriers within a unified framework of channel diversification. It also highlights the importance of reducing platform-related vulnerabilities and strengthening entrepreneurial adaptability in increasingly dynamic digital commerce environments.
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