By adopting transactional social commerce functions from mobile apps, individuals can sell products and services directly to friends on their contact list. This drives micro entrepreneurs with fewer than ten employees and less than a €2million annual balance (European Union Law, 2013) to become key drivers for economic growth (Paoloni & Dumay, 2011). In particular, individuals aged 18-34 become inspired by images on social networks for clothing and fashion products. Hence, fashion products are popular business items for micro-entrepreneurs. Despite potential benefits for social commerce, micro-fashion entrepreneurs in many countries are still unaware of apps’ use in social commerce to sell products, and to create and manage social capital for their business. This exploratory research aimed to investigate how micro-fashion entrepreneurs adopt transactional-focused social commerce and utilize social capital embedded in network ties for their marketing and sales, based on innovation diffusion and social capital theory. Research questions included: (1) How do micro-fashion entrepreneurs adopt social commerce? (2) How does social capital in network ties contribute to marketing and sales in social commerce? To answer these research questions, qualitative data from phone interviews with 16 micro-fashion entrepreneurs selling fashion products through WeChat in China were analyzed, adopting a thematic analysis. Data indicated micro-fashion entrepreneurs have positive attitudes, based on their experience and knowledge of WeChat. They adopt social commerce to (1) sell products in a new way, (2) connect with customers, and (3) reduce financial risk, while an innovative channel for entrepreneurship. Also, operating a business through WeChat required less time commitment compared with brick and mortar, and online stores, because accessing services like WeChat have payment systems, share images and messages. Free calls and messages are already available. The interview data demonstrated micro-entrepreneurs have an advantage when adopting social network ties in WeChat and implementing social capital embedded in marketing sales networks. Structural, relational, and cognitive capital contribute to micro-entrepreneurs’ marketing and sales interactively. An individual could access target customers, based on networks already established social media platforms and facilitate entrepreneurs’ adoption of social commerce. Also, since trust, shared goals, and languages exist on these network ties, there exists an increase for entrepreneurs’ accessibility to use social commerce to initiate their business, while decreasing business operating expenses, promoting products, and building relationships with customers. In addition, relational capital built by interactions with each customer brings cognitive capital to promote products and strong network ties.

• Jihyeong Son(Washington State University, USA)
• Jing Sun(Washington State University, USA)
• Ting Chi(Washington State University, USA)