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Investigating the effect of social media application on firm capabilities and performance: The perspective of dynamic capability view

Lookup NU author(s): Dr Yu YeORCiD, Dr Qionglei YuORCiD

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).

Abstract

Adopting the Dynamic Capability View, this study investigates the relationships between social media application, firms’ capabilities and performance. Highlighting the dynamic and ever-changing environment, and firms with limited resources, this study argues that social media is a strategic resource, and agility and adaptability are critical in measuring firms’ dynamic capabilities. The study further evaluates the mediating role of time-based performance on the relationships between these capabilities and firm performance. Drawing upon a sample of 249 firms, the findings validate the positive impact of social media on both capabilities and confirm the mediating effect of time-based performance in the relationship between agility, adaptability and firm performance. Finally, recommendations are provided for senior management teams regarding social media application as a resource that can strengthen firms’ agility and adaptability, whilst time-based performance is seen to require special attention where the external business environment is volatile.

Publication metadata

Author(s): Ye Y, Yu Q, Zheng Y, Zheng Y

Publication type: Article

Publication status: Published

Journal: Journal of Business Research

Year: 2022

Volume: 139

Pages: 510-519

Print publication date: 01/02/2022

Online publication date: 14/10/2021

Acceptance date: 03/10/2021

Date deposited: 16/10/2021

ISSN (print): 0148-2963

ISSN (electronic): 1873-7978

Publisher: Elsevier Inc.

URL: https://doi.org/10.1016/j.jbusres.2021.10.008

DOI: 10.1016/j.jbusres.2021.10.008

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