Analyzing the Impact of Social Network Position on Firm Performance: A Comprehensive Study

Abstract

This study attempts to clarify the complex relationship that exists between social networks and corporate performance by introducing price and selling capacities as well as trust as a mediating component. A structural equation model was created using the body of existing research as a basis, and 380 small and medium-sized businesses (SMEs) in Indonesia participated in a survey to provide empirical data. The results show that, in the absence of social network trust, the use of social media in the management process by itself has no effect on the performance of the company. It becomes clear that trust is a major accelerator for the growth of selling and pricing skills, which in turn improves company performance. The survey highlights how important selling and pricing skills are when it comes to using social media, especially when it comes to developing trust. Although the research mostly focuses on small-to-medium-sized businesses and offers insightful information, generalizability to other contexts should be handled cautiously. In order to improve selling skills and expand corporate networks, managers should proactively use social media to improve overall company performance. In conclusion, trust is shown to be a critical mediator between social networks and corporate performance, emphasizing the need for trust in utilizing social media for better management and overall business success.