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Investigating the effect of social media application on firm capabilities and performance: The perspective of dynamic capability view

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  • Ye, Yu
  • Yu, Qionglei
  • Zheng, Yongjun
  • Zheng, Yi

Abstract

This study adopts the dynamic capability view in investigating the relationship between social media applications, firm capabilities, and performance. It highlights the dynamic and ever-changing environment, and firms with limited resources. It argues that social media is a strategic resource, and agility and adaptability are critical in measuring firms’ dynamic capabilities. The study further evaluates the mediating role of time-based performance on the relationship between these capabilities and firm performance. Drawing upon a sample of 249 firms, the findings validate the positive impact of social media on both capabilities and confirm the mediating effect of time-based performance on the relationship between agility, adaptability, and firm performance. Finally, the study provides some recommendations for senior management teams regarding social media application as a resource that can strengthen firms’ agility and adaptability, while time-based performance is seen to require special attention where the external business environment is volatile.

Suggested Citation

  • Ye, Yu & Yu, Qionglei & Zheng, Yongjun & Zheng, Yi, 2022. "Investigating the effect of social media application on firm capabilities and performance: The perspective of dynamic capability view," Journal of Business Research, Elsevier, vol. 139(C), pages 510-519.
    • Handle: RePEc:eee:jbrese:v:139:y:2022:i:c:p:510-519
    DOI: 10.1016/j.jbusres.2021.10.008
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