Impact of social media capability on firm performance: new evidence from China

Lijuan Bai () and Xiangbin Yan ()
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Lijuan Bai: Harbin Engineering University
Xiangbin Yan: University of Science & Technology Beijing

Asian Business & Management, 2023, vol. 22, issue 1, No 5, 118-136

Abstract: Abstract Social media has become an important channel for marketing and management of enterprises, but the effects of social media capability on firm performance has not been verified systematically, particularly the effects of CEOs’ social media capability. Based on the Dynamic Capability Theory, this study validates the causal relationship between social media capability and firm performance, then examine the significant effects of firm social media capability on firm performance and consumer engagement and the moderating effects of CEOs’ social media capability. The findings prove the following: firm social media capability leads to a positive effect on firm performance and consumer engagement; CEOs’ social media capability moderates the relationship between firm social media capability and firm performance significantly. Implications for academic research and practice were also discussed based on the research findings.

Keywords: Firm social media capability; CEO social media capability; Firm performance; Consumer engagement; Econometric modeling (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1057/s41291-021-00156-0

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