Chalk and Cheese: How Negative and Positive Star-Ratings Influence Service Provider Behavior?

Consumer star-ratings play a crucial role in shaping the dynamics of the gig economy, influencing consumer behavior, service quality, and platform operations. Star-ratings serve as a form of reputation management mechanism, providing feedback to service providers about the service quality, as a result acting as a key stimulus to change service provider behavior. While it is tautological to assume that positive star-ratings are always encouraging, how star-ratings influence the intent to change service provider behavior is complex and requires scientific exploration. This study investigates the polarizing role of star-ratings on service provider behavior intentions. The study employs the tenets of social influence and social impact theories, analyzing survey data of 865 drivers representing a single ride-hailing company. The study findings, developed employing polynomial regression and SEM, identify a series of conditions as to how the concomitant existence of star-ratings and social influence impact service provider behavior intentions.