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

Yu Ye, Qionglei Yu, Yongjun Zheng and Yi Zheng

Journal of Business Research, 2022, vol. 139, issue C, 510-519

Abstract: This study adopts the dynamic capability view in investigating the relationship between social media applications, firm capabilities, and performance. It highlights the dynamic and ever-changing environment, and firms with limited resources. It 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 relationship 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 on the relationship between agility, adaptability, and firm performance. Finally, the study provides some recommendations for senior management teams regarding social media application as a resource that can strengthen firms’ agility and adaptability, while time-based performance is seen to require special attention where the external business environment is volatile.

Keywords: Adaptability; Agility; Dynamic Capability; Firm Performance; Social Media Application; Time-based Performance (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:139:y:2022:i:c:p:510-519

DOI: 10.1016/j.jbusres.2021.10.008

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