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A Firm’s Activity in Social Media and Its Relationship with Corporate Reputation and Firm Performance

In: Blurring the Boundaries Through Digital Innovation

Author

Listed:
  • Heikki Karjaluoto

    (University of Jyväskylä)

  • Hanna Mäkinen

    (University of Jyväskylä)

  • Joel Järvinen

    (University of Jyväskylä)

Abstract

There is growing debate about whether companies’ investments in social media really pay off. This research attempts to contribute to this discussion by investigating the relationship between a firm’s social media activity and two outcomes, namely, company reputation and firm financial performance. Two propositions are developed based on theory and tested with a sample of 59 companies. The findings suggest that a firm’s social media activity is only partially linked with its financial performance and is not linked with corporate reputation. The implications of the research suggest that little is known about the relationships between a firm’s social media activity and corporate reputation and financial outcomes.

Suggested Citation

  • Heikki Karjaluoto & Hanna Mäkinen & Joel Järvinen, 2016. "A Firm’s Activity in Social Media and Its Relationship with Corporate Reputation and Firm Performance," Lecture Notes in Information Systems and Organization, in: Fabrizio D'Ascenzo & Massimo Magni & Alessandra Lazazzara & Stefano Za (ed.), Blurring the Boundaries Through Digital Innovation, pages 161-172, Springer.
    • Handle: RePEc:spr:lnichp:978-3-319-38974-5_13
    DOI: 10.1007/978-3-319-38974-5_13
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