The dynamic process of social capital transformation and the emergence of E-commerce diffusion networks

The emergence of the e-commerce village, which has become prevalent in rural China in recent years, could be regarded as a result of innovation diffusion. To explore the dynamic process of social capital transformation in rural China, this study carried out a field survey in a typical e-commerce village in Northern China named Dinglou Village. We used TERGM and SAOM to analyze the e-commerce diffusion network and found that the neighborhood, family, and peer-group networks all influenced the formation of the e-commerce diffusion network in this village. The contributions of three social networks were not depleted even with external interventions. In conclusion, it is suggested that the existing rural social capital did transform and positively influenced the development of the e-commerce village, which could serve as a case study for understanding the dynamic process of social capital transformation in rural China.