IDEAS home Printed from https://ideas.repec.org/a/vrs/ijomae/v58y2022i2p121-142n5.html
   My bibliography  Save this article

Social media use in international marketing: Impact on brand and firm performance

Author

Listed:
  • Witek-Hajduk Marzanna K.

    (Collegium of World Economy, SGH Warsaw School of Economics, Warsaw, Poland.)

  • Zaborek Piotr

    (Collegium of World Economy, SGH Warsaw School of Economics, Warsaw, Poland.)

Abstract

This research investigates the influence of brand and customer orientations on social media (SM) marketing engagement and how applications of SM in international marketing affect brand and firm performance in foreign markets. The study relies on a survey of a representative sample of 245 medium and large companies using SM in international branding. Performance metrics include an index of brand performance (BP) in a foreign market and return on assets (ROA). Structural equation modeling analysis reveals the overall effect of SM use in international branding as positive, with brand-image creation and market research being significant contributors to brand and firm performance in a foreign market. SM effectiveness is negatively moderated by foreign partner involvement and centralization degree. Firms co-owned by foreign entities turn out to be more successful than their Polish-only counterparts. Of the two antecedents of SM international marketing engagement, customer orientation is significant for all firms, while brand orientation is meaningful only for those with foreign capital.

Suggested Citation

  • 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.
    • Handle: RePEc:vrs:ijomae:v:58:y:2022:i:2:p:121-142:n:5
    DOI: 10.2478/ijme-2022-0011
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/ijme-2022-0011
    Download Restriction: no
    File URL: https://libkey.io/10.2478/ijme-2022-0011?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
    ---><---

    References listed on IDEAS

    as
    1. Berthon, Pierre R. & Pitt, Leyland F. & Plangger, Kirk & Shapiro, Daniel, 2012. "Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy," Business Horizons, Elsevier, vol. 55(3), pages 261-271.
    2. Prashanth Nagendra Bharadwaj & Ramesh G. Soni, 2007. "E‐Commerce Usage and Perception of E‐Commerce Issues among Small Firms: Results and Implications from an Empirical Study," Journal of Small Business Management, Taylor & Francis Journals, vol. 45(4), pages 501-521, October.
    3. 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.
    4. Shahbaznezhad, Hamidreza & Dolan, Rebecca & Rashidirad, Mona, 2021. "The Role of Social Media Content Format and Platform in Users' Engagement Behavior," Journal of Interactive Marketing, Elsevier, vol. 53(C), pages 47-65.
    5. Ling-yee, Li & Ogunmokun, Gabriel O., 2001. "Effect of export financing resources and supply-chain skills on export competitive advantages: implications for superior export performance," Journal of World Business, Elsevier, vol. 36(3), pages 260-279, October.
    6. Pezzuti, Todd & Leonhardt, James M. & Warren, Caleb, 2021. "Certainty in Language Increases Consumer Engagement on Social Media," Journal of Interactive Marketing, Elsevier, vol. 53(C), pages 32-46.
    7. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    8. Kaplan, Andreas M. & Haenlein, Michael, 2010. "Users of the world, unite! The challenges and opportunities of Social Media," Business Horizons, Elsevier, vol. 53(1), pages 59-68, January.
    9. Sandy Chong & Graham Pervan, 2007. "Factors Influencing the Extent of Deployment of Electronic Commerce for Small-and Medium Sized Enterprises," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 5(1), pages 1-29, January.
    10. Schmid, Stefan & Kotulla, Thomas, 2011. "50 years of research on international standardization and adaptation--From a systematic literature analysis to a theoretical framework," International Business Review, Elsevier, vol. 20(5), pages 491-507, October.
    11. Richard P. Bagozzi & Utpal M. Dholakia, 2006. "Open Source Software User Communities: A Study of Participation in Linux User Groups," Management Science, INFORMS, vol. 52(7), pages 1099-1115, July.
    12. 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.
    13. Tiago, Maria Teresa Pinheiro Melo Borges & Veríssimo, José Manuel Cristóvão, 2014. "Digital marketing and social media: Why bother?," Business Horizons, Elsevier, vol. 57(6), pages 703-708.
    14. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    15. 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.
    16. Zaborek, Piotr & Mazur, Jolanta, 2019. "Enabling value co-creation with consumers as a driver of business performance: A dual perspective of Polish manufacturing and service SMEs," Journal of Business Research, Elsevier, vol. 104(C), pages 541-551.
    17. 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.
    18. Jan-Benedict E M Steenkamp & Rajeev Batra & Dana L Alden, 2003. "How perceived brand globalness creates brand value," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 53-65, January.
    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. 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.
    2. Perez-Vega, Rodrigo & Hopkinson, Paul & Singhal, Aishwarya & Mariani, Marcello M., 2022. "From CRM to social CRM: A bibliometric review and research agenda for consumer research," Journal of Business Research, Elsevier, vol. 151(C), pages 1-16.
    3. Brewis, Claire & Dibb, Sally & Meadows, Maureen, 2023. "Leveraging big data for strategic marketing: A dynamic capabilities model for incumbent firms," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    4. 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.
    5. Venciūtė Dominyka, 2018. "Social Media Marketing – from Tool to Capability," Management of Organizations: Systematic Research, Sciendo, vol. 79(1), pages 131-145, June.
    6. Hultman, Magnus & Iveson, Abbie & Oghazi, Pejvak, 2023. "Talk less and listen more? The effectiveness of social media talking and listening tactics on export performance," Journal of Business Research, Elsevier, vol. 159(C).
    7. 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.
    8. 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.
    9. Hassani, Abdeslam & Mosconi, Elaine, 2022. "Social media analytics, competitive intelligence, and dynamic capabilities in manufacturing SMEs," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    10. Rahman, Muhammad Sabbir & Bag, Surajit & Gupta, Shivam & Sivarajah, Uthayasankar, 2023. "Technology readiness of B2B firms and AI-based customer relationship management capability for enhancing social sustainability performance," Journal of Business Research, Elsevier, vol. 156(C).
    11. Simona VINEREAN, 2017. "Importance of Strategic Social Media Marketing," Expert Journal of Marketing, Sprint Investify, vol. 5(2), pages 28-35.
    12. 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.
    13. Hyun Gon Kim & Zhan Wang, 2019. "Defining and measuring social customer-relationship management (CRM) capabilities," Journal of Marketing Analytics, Palgrave Macmillan, vol. 7(1), pages 40-50, March.
    14. Zhang, Feng & Zhu, Lei, 2021. "Social media strategic capability, organizational unlearning, and disruptive innovation of SMEs: The moderating roles of TMT heterogeneity and environmental dynamism," Journal of Business Research, Elsevier, vol. 133(C), pages 183-193.
    15. Alarcón-del-Amo, María-del-Carmen & Rialp, Alex & Rialp, Josep & López-Belbeze, Pilar, 2024. "Unveiling the dynamics of exporting firms: How social media shapes export costs and relationships," International Business Review, Elsevier, vol. 33(5).
    16. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    17. Adomako, Samuel & Amankwah-Amoah, Joseph & Donbesuur, Francis & Ahsan, Mujtaba & Danso, Albert & Uddin, Moshfique, 2022. "Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions," International Business Review, Elsevier, vol. 31(6).
    18. Jasna Prester, 2023. "Operating and Dynamic Capabilities and Their Impact on Operating and Business Performance," Sustainability, MDPI, vol. 15(20), pages 1-24, October.
    19. Marjeta Marolt & Hans-Dieter Zimmermann & Andreja Pucihar, 2022. "Social Media Use and Business Performance in SMEs: The Mediating Roles of Relational Social Commerce Capability and Competitive Advantage," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    20. Ho, Mia Hsiao-Wen & Chung, Henry F.L., 2020. "Customer engagement, customer equity and repurchase intention in mobile apps," Journal of Business Research, Elsevier, vol. 121(C), pages 13-21.

    More about this item

    Keywords

    brand orientation; customer orientation; international branding; performance; social media marketing;
    All these keywords.

    JEL classification:

    • F - International Economics
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

    Statistics

    Access and download statistics

    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:vrs:ijomae:v:58:y:2022:i:2:p:121-142:n:5. 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: Peter Golla (email available below). General contact details of provider: https://www.sgh.waw.pl/kgs/en .

    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.