Xu, YujunKapitan, SommerPhillips, Megan2026-05-262026-05-262025-12-17Australasian Marketing Journal, ISSN: 1441-3582 (Print); 1839-3349 (Online), SAGE Publications. doi: 10.1177/144135822513996431441-35821839-3349http://hdl.handle.net/10292/21235This study examines the dual effects of co-creation in live streaming commerce by investigating how synchronous community interaction (danmaku), in the form of scrolling comments, questions, gift-sharing, testimonials and interactions, shape consumer responses. Integrating theories of co-creation, source effects and information overload, we propose and test a model of how community interaction in streaming can (1) co-create social impact such as trust and (2) build commercial impact such as engagement and purchase intention, but can also lead to co-destruction with excessive danmaku content with (3) social impacts that overwhelm viewers’ information sensitivity to lower their trust and (4) distract from the streamers’ commercial message to reduce conversion. Findings reveal that macro-streamers (>100,000 followers) directly enhance consumer outcomes. Yet when community chat danmaku becomes excessive, positive effects are attenuated due to information overload and disrupted viewer immersion, demonstrating a co-destructive effect. In contrast, micro-streamers build consumer trust gradually, and danmaku does not alter their impact. Their influence operates indirectly via trust-based parasocial bonds, reinforcing co-creative engagement. This research offers actionable implications for brands, platforms and influencers aiming to balance community engagement with message clarity to optimise consumer impact.© 2025 Australian and New Zealand Marketing Academy. Creative Commons License (CC BY 4.0). This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage).https://creativecommons.org/licenses/by/4.0/3503 Business Systems In Context35 Commerce, Management, Tourism and Services15 Commerce, Management, Tourism and Services3506 Marketinglive streaming commerceco-creationco-destructioncommunity interactioninformation overloadonline marketing strategyJournal ArticleOpenAccess10.1177/14413582251399643