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Impact of social media capability on firm performance: new evidence from China

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Abstract

Social media has become an important channel for marketing and management of enterprises, but the effects of social media capability on firm performance has not been verified systematically, particularly the effects of CEOs’ social media capability. Based on the Dynamic Capability Theory, this study validates the causal relationship between social media capability and firm performance, then examine the significant effects of firm social media capability on firm performance and consumer engagement and the moderating effects of CEOs’ social media capability. The findings prove the following: firm social media capability leads to a positive effect on firm performance and consumer engagement; CEOs’ social media capability moderates the relationship between firm social media capability and firm performance significantly. Implications for academic research and practice were also discussed based on the research findings.

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Acknowledgements

The authors gratefully acknowledge the financial supports by the National Nature Science Foundation of China under Grant numbers: 71531013; the Fundamental Research New Evidence for the Central Universities under Grant numbers:3072021CFJ903.

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Authors and Affiliations

  1. School of Management, Harbin Engineering University, Harbin, 150001, China

    Lijuan Bai

  2. Donlinks School of Economics and Management, University of Science & Technology Beijing, Beijing, 100083, China

    Xiangbin Yan

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  1. Lijuan Bai
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Bai, L., Yan, X. Impact of social media capability on firm performance: new evidence from China. Asian Bus Manage 22, 118–136 (2023). https://doi.org/10.1057/s41291-021-00156-0

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