IDEAS home Printed from https://ideas.repec.org/a/pal/abaman/v22y2023i1d10.1057_s41291-021-00156-0.html
   My bibliography  Save this article

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

Author

Listed:
  • Lijuan Bai

    (Harbin Engineering University)

  • Xiangbin Yan

    (University of Science & Technology Beijing)

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.

Suggested Citation

  • Lijuan Bai & Xiangbin Yan, 2023. "Impact of social media capability on firm performance: new evidence from China," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 118-136, February.
    • Handle: RePEc:pal:abaman:v:22:y:2023:i:1:d:10.1057_s41291-021-00156-0
    DOI: 10.1057/s41291-021-00156-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41291-021-00156-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41291-021-00156-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Abdul-Ghani, Eathar & Hyde, Kenneth F. & Marshall, Roger, 2011. "Emic and etic interpretations of engagement with a consumer-to-consumer online auction site," Journal of Business Research, Elsevier, vol. 64(10), pages 1060-1066, October.
    2. René Algesheimer & Sharad Borle & Utpal M. Dholakia & Siddharth S. Singh, 2010. "The Impact of Customer Community Participation on Customer Behaviors: An Empirical Investigation," Marketing Science, INFORMS, vol. 29(4), pages 756-769, 07-08.
    3. Neil A. Morgan & Douglas W. Vorhies & Charlotte H. Mason, 2009. "Market orientation, marketing capabilities, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 909-920, August.
    4. Wang, Zhan & Kim, Hyun Gon, 2017. "Can Social Media Marketing Improve Customer Relationship Capabilities and Firm Performance? Dynamic Capability Perspective," Journal of Interactive Marketing, Elsevier, vol. 39(C), pages 15-26.
    5. Trainor, Kevin J. & Andzulis, James (Mick) & Rapp, Adam & Agnihotri, Raj, 2014. "Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM," Journal of Business Research, Elsevier, vol. 67(6), pages 1201-1208.
    6. Dokyun Lee & Kartik Hosanagar & Harikesh S. Nair, 2018. "Advertising Content and Consumer Engagement on Social Media: Evidence from Facebook," Management Science, INFORMS, vol. 64(11), pages 5105-5131, November.
    7. Braojos-Gomez, Jessica & Benitez-Amado, Jose & Javier Llorens-Montes, F., 2015. "How do small firms learn to develop a social media competence?," International Journal of Information Management, Elsevier, vol. 35(4), pages 443-458.
    8. de Vries, Lisette & Gensler, Sonja & Leeflang, Peter S.H., 2012. "Popularity of Brand Posts on Brand Fan Pages: An Investigation of the Effects of Social Media Marketing," Journal of Interactive Marketing, Elsevier, vol. 26(2), pages 83-91.
    9. Amalia R. Miller & Catherine Tucker, 2013. "Active Social Media Management: The Case of Health Care," Information Systems Research, INFORMS, vol. 24(1), pages 52-70, March.
    10. W. Brooke Elliott & Stephanie M. Grant & Frank D. Hodge, 2018. "Negative News and Investor Trust: The Role of $Firm and #CEO Twitter Use," Journal of Accounting Research, Wiley Blackwell, vol. 56(5), pages 1483-1519, December.
    11. Capriotti, Paul & Ruesja, Laura, 2018. "How CEOs use Twitter: A comparative analysis of Global and Latin American companies," International Journal of Information Management, Elsevier, vol. 39(C), pages 242-248.
    12. Khim-Yong Goh & Cheng-Suang Heng & Zhijie Lin, 2013. "Social Media Brand Community and Consumer Behavior: Quantifying the Relative Impact of User- and Marketer-Generated Content," Information Systems Research, INFORMS, vol. 24(1), pages 88-107, March.
    13. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    14. Bang Nguyen & Xiaoyu (allen) Yu & T. C. Melewar & Junsong Chen, 2015. "Brand innovation and social media : Knowledge acquisition from social media, market orientation, and the moderating role of social media strategic capability," Post-Print hal-02312301, HAL.
    15. Gensler, Sonja & Völckner, Franziska & Liu-Thompkins, Yuping & Wiertz, Caroline, 2013. "Managing Brands in the Social Media Environment," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 242-256.
    16. Brodie, Roderick J. & Ilic, Ana & Juric, Biljana & Hollebeek, Linda, 2013. "Consumer engagement in a virtual brand community: An exploratory analysis," Journal of Business Research, Elsevier, vol. 66(1), pages 105-114.
    17. Mollen, Anne & Wilson, Hugh, 2010. "Engagement, telepresence and interactivity in online consumer experience: Reconciling scholastic and managerial perspectives," Journal of Business Research, Elsevier, vol. 63(9-10), pages 919-925, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simon, Françoise & Tossan, Vesselina, 2018. "Does brand-consumer social sharing matter? A relational framework of customer engagement to brand-hosted social media," Journal of Business Research, Elsevier, vol. 85(C), pages 175-184.
    2. Schaefers, Tobias & Falk, Tomas & Kumar, Ashish & Schamari, Julia, 2021. "More of the same? Effects of volume and variety of social media brand engagement behavior," Journal of Business Research, Elsevier, vol. 135(C), pages 282-294.
    3. Bruneau, Virginie & Swaen, Valérie & Zidda, Pietro, 2018. "Are loyalty program members really engaged? Measuring customer engagement with loyalty programs," Journal of Business Research, Elsevier, vol. 91(C), pages 144-158.
    4. Witek-Hajduk Marzanna K. & Zaborek Piotr, 2022. "Social media use in international marketing: Impact on brand and firm performance," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(2), pages 121-142, June.
    5. Vasu Unnava & Ashwin Aravindakshan, 2021. "How does consumer engagement evolve when brands post across multiple social media?," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 864-881, September.
    6. Muhammad Waqas & Zalfa Laili Binti Hamzah & Noor Akma Mohd Salleh, 2021. "Customer experience: a systematic literature review and consumer culture theory-based conceptualisation," Management Review Quarterly, Springer, vol. 71(1), pages 135-176, February.
    7. Sheng, Jie, 2019. "Being Active in Online Communications: Firm Responsiveness and Customer Engagement Behaviour," Journal of Interactive Marketing, Elsevier, vol. 46(C), pages 40-51.
    8. Rosenthal, Benjamin & Brito, Eliane P.Z., 2017. "How virtual brand community traces may increase fan engagement in brand pages," Business Horizons, Elsevier, vol. 60(3), pages 375-384.
    9. Marchand, André & Hennig-Thurau, Thorsten & Flemming, Jan, 2021. "Social media resources and capabilities as strategic determinants of social media performance," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 549-571.
    10. Blanca I. Hernández-Ortega & Michael A. Stanko & Rishika Rishika & Francisco-Jose Molina-Castillo & José Franco, 2022. "Brand-generated social media content and its differential impact on loyalty program members," Journal of the Academy of Marketing Science, Springer, vol. 50(5), pages 1071-1090, September.
    11. Christian Homburg & Dominik M. Wielgos, 2022. "The value relevance of digital marketing capabilities to firm performance," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 666-688, July.
    12. Osei-Frimpong, Kofi & McLean, Graeme, 2018. "Examining online social brand engagement: A social presence theory perspective," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 10-21.
    13. Lim, Weng Marc & Rasul, Tareq & Kumar, Satish & Ala, Mamun, 2022. "Past, present, and future of customer engagement," Journal of Business Research, Elsevier, vol. 140(C), pages 439-458.
    14. Carsten D. Schultz, 2016. "Insights from consumer interactions on a social networking site: Findings from six apparel retail brands," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(3), pages 203-217, August.
    15. Wang, Zhan & Kim, Hyun Gon, 2017. "Can Social Media Marketing Improve Customer Relationship Capabilities and Firm Performance? Dynamic Capability Perspective," Journal of Interactive Marketing, Elsevier, vol. 39(C), pages 15-26.
    16. Alice Mazzucchelli & Roberto Chierici & Angelo Di Gregorio & Claudio Chiacchierini, 2021. "Is Facebook an effective tool to access foreign markets? Evidence from international export performance of fashion firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1107-1144, December.
    17. Alvarez-Milán, Agarzelim & Felix, Reto & Rauschnabel, Philipp A. & Hinsch, Christian, 2018. "Strategic customer engagement marketing: A decision making framework," Journal of Business Research, Elsevier, vol. 92(C), pages 61-70.
    18. Dominik M. Wielgos & Christian Homburg & Christina Kuehnl, 2021. "Digital business capability: its impact on firm and customer performance," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 762-789, July.
    19. Bertschek, Irene & Kesler, Reinhold, 2022. "Let the user speak: Is feedback on Facebook a source of firms’ innovation?," Information Economics and Policy, Elsevier, vol. 60(C).
    20. Halloran, Timothy J. & Lutz, Richard J., 2021. "Let's Give Them Something to Talk About: Which Social Media Engagements Predict Purchase Frequency?," Journal of Interactive Marketing, Elsevier, vol. 56(C), pages 83-95.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:abaman:v:22:y:2023:i:1:d:10.1057_s41291-021-00156-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.