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

Yu Ye, Qionglei Yu*, Yongjun Zheng, Yi Zheng

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

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.
Original languageEnglish
Pages (from-to)510-519
Number of pages10
JournalJournal of Business Research
Early online date14 Oct 2021
DOIs
Publication statusPublished - 1 Feb 2022
Externally publishedYes

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