Abstract
ABSTRACT Existing research provides mixed insights regarding social media’s (SM) effect on new product advantage (NPA). We emphasise on this inconsistency by focusing on the fact SM has different effects on two kinds of NPA: new product development speed (NPD speed) and new product creativity (NPC). We suggest that SM can boost NPD speed and yet have an inverted U-shaped effect on NPC. Furthermore, we argue that top management team diversity (TMT diversity) enhances the effects of SM on NPA. We verify and provide evidence to support our hypotheses using 150 sample firms based in China. This study highlights the NPA trade-offs related to SM and provides crucial theoretical contributions and managerial implications.
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