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Promoting business model innovation through social media strategic capability: A moderated mediation model

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  • Zhang, Feng
  • Zhu, Lei

Abstract

The rapid development of social media has significantly affected organizational innovation activities. However, scant research has investigated how social media, as an important innovative tool within the corporate landscape, influences firm business model innovation (BMI). This paper provides an initial investigation into whether, and how, social media can be used to promote firm BMI. Drawing on the strategic capability literature, the study examines the relationship between social media strategic capability (SMSC) and BMI by focusing on the mediating role of strategic flexibility and the moderating effects of top management team (TMT) heterogeneity and environmental dynamism. Empirical results from a sample of 283 Chinese firms with two key informants each show a significant and positive association between SMSC and BMI, which is mediated by strategic flexibility. In addition, moderated path analyses indicate that TMT heterogeneity positively moderates the SMSC–strategic flexibility path, while environmental dynamism positively moderates the strategic flexibility–BMI path in the mediated relationship. Theoretical and practical implications of this study for both social media and BMI research are discussed.

Suggested Citation

  • Zhang, Feng & Zhu, Lei, 2022. "Promoting business model innovation through social media strategic capability: A moderated mediation model," European Management Journal, Elsevier, vol. 40(1), pages 56-66.
    • Handle: RePEc:eee:eurman:v:40:y:2022:i:1:p:56-66
    DOI: 10.1016/j.emj.2021.02.003
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