This study examines (i) the role of social media functionalities in building trust (ii) and trust’s role in achieving co-production of the value proposition. This research confirms the positive impact of social media functionality on developing trust. A cross-sectional survey is conducted based on the questionnaire method in this study. The sample was drawn from Tehranand Arak companies located in Science and Technology Parks and industrial zones. Structural equation modeling was performed to test the relationship among the research variables. Drawing upon a sample of 358 participants working in industrial firms and using partial least squares structural equation modeling, the functionality of social media as particular tools to build trust is elaborated. Also, our research results prove the critical impact of trust on the co-production of value proposition dimensions, i.e., knowledge and information sharing, problem-solving, and co-production. Furthermore, it is shown that technological uncertainty has a positive moderating effect on the relationship between trust and co-production. Conversely, competition intensity has a negative moderating influence on the relationship between trust and problem-solving. The results of this study is particularly useful for B2B firms and shows that by investing in social media activities, they can extend their communications with their client and stakeholders to develop trust effectively. Such investment reaps the benefit of co-production of the value proposition. Based on the results, this paper suggests managerial implications for policymakers, sales managers, IT managers, and social media directors who wish to build a strong relationship with their clients and motivate them to take part in their production process and help them improve both quality and services.
