Social media strategic capability, organizational unlearning, and disruptive innovation of SMEs: The moderating roles of TMT heterogeneity and environmental dynamism

Abstract

This paper provides an investigation into how social media can be used to promote disruptive innovation in small and medium enterprises (SMEs) from a capability perspective. Based on the strategic capability literature, this study examines the influence of social media strategic capability (SMSC) on disruptive innovation, the mediation role of organizational unlearning, and the moderating effects of top management team (TMT) heterogeneity and environmental dynamism. The empirical results from a sample of 198 Chinese manufacturing firms, each with paired respondents, show a significant association between SMSC and disruptive innovation, which is mediated by organizational unlearning. Furthermore, the effect of SMSC on unlearning is enhanced when SMEs have heterogeneous TMTs, and the influence of unlearning on disruptive innovation is strengthened in dynamic market and regulatory environments but weakened in dynamic technological environments. These findings contribute new knowledge to the literature on both social media and disruptive innovation.