The spread of social media communication and its impact on firm reputation and performance: moderation of miscommunications

Yuting Zhang

International Journal of Applied Systemic Studies, 2026, vol. 13, issue 2, 159-176

Abstract: Social media communication (SMC) is an essential capability for firms since it enhances firm reputation (FR) and drives firm performance (FP). However, miscommunications through SMC eventually harm the firm's reputation by creating misunderstandings that ultimately affect firm performance. This study specifically investigates the connection among SMC, FR, and FP together with the influence of miscommunications (MC) based on social exchange theory. First, a positive link was found between social media communication and firm performance. Second, a direct impact between social media communication and FR along with the mediation of FR between social media communication and financial performance, was observed. Third, a significant moderation of MC was observed among the nexus of SMC and the financial performance of the organisations. This study promotes the notion of social media communication and how it may improve a firm's reputation and performance. Aside from that, some limitations along with future possibilities are mentioned for the scholars.

Keywords: social media communication; SMC; firm reputation; FR; firm performance; FP; miscommunications; MC; social exchange theory. (search for similar items in EconPapers)
Date: 2026
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