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Why do organizations leverage social media to create business value? An external factor-centric empirical investigation

Author

Listed:
  • Jiabao Lin

    (SCAU - South China Agricultural University)

  • Zhimei Luo

    (HUST - Huazhong University of Science and Technology [Wuhan])

  • Jose Benitez

    (ESC [Rennes] - ESC Rennes School of Business)

  • Xin (robert) Luo

    (UCLA Anderson School of Management)

  • Aleš Popovič

    (NEOMA - Neoma Business School)

Abstract

Why do organizations develop and execute social media initiatives to create business value? This study addresses this prominent and critical research question for IS research on the business value of social media. Drawing on the institutional theory, we argue that mimetic, coercive, and normative pressure persuade organizations to use social media to improve marketing performance. We test our core proposition and theory-driven research model using data collected from a sample of leading Chinese agribusinesses. We find that coercive and mimetic pressure play pivotal roles in motivating organizations to use social media. We also discover that social media usage improves marketing performance and that the agribusiness market uncertainty plays a positive reinforcing role in the positive effect of social media usage on marketing performance. Thus, this paper contributes to IS research with an eloquent theoretical explanation and strong empirical evidence on why organizations deploy social media initiatives to improve their marketing activities and performance and the higher business value of social media under greater agribusiness market uncertainty.

Suggested Citation

  • Jiabao Lin & Zhimei Luo & Jose Benitez & Xin (robert) Luo & Aleš Popovič, 2021. "Why do organizations leverage social media to create business value? An external factor-centric empirical investigation," Post-Print hal-03413223, HAL.
    • Handle: RePEc:hal:journl:hal-03413223
    DOI: 10.1016/j.dss.2021.113628
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    Citations

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    Cited by:

    1. Lin, Shunzhi & Lin, Jiabao, 2023. "How organizations leverage digital technology to develop customization and enhance customer relationship performance: An empirical investigation," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    2. Li, Lei & Lin, Jiabao & Ouyang, Ye & Luo, Xin (Robert), 2022. "Evaluating the impact of big data analytics usage on the decision-making quality of organizations," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    3. Emmanuel Bruce & Zhao Shurong & Sulemana Bankuoru Egala & John Amoah & Du Ying & Huang Rui & Tai Lyu, 2022. "Social Media Usage and SME Firms’ Sustainability: An Introspective Analysis from Ghana," Sustainability, MDPI, vol. 14(15), pages 1-17, August.
    4. Babak Naysary & Mehdi Malekzadeh & Ruth Tacneng & Amine Tarazi, 2022. "Big data analytics application in multi-criteria decision making: the case of eWallet adoption," Working Papers hal-03632834, HAL.
    5. Mehdi Bensouda & Mimoun Benali, 2022. "Overcoming Risk Aversion Regarding Energy Efficiency Practices through Mimetic Pressure and Financial Slack: Findings from the Moroccan Manufacturing Sector," Sustainability, MDPI, vol. 14(23), pages 1-15, December.

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