Social Media use and value creation in the digital landscape: a dynamic-capabilities perspective

Abstract

PurposeAlthough Social Media use has become all-pervasive, previous research has failed to explain how to use Social Media tools strategically to create business value in today's increasingly digital landscapes. Adopting a dynamic capabilities perspective, this paper empirically examines the specific process through which Social Media use translates into better performance and the capabilities involved in this process.Design/methodology/approachA research model is proposed that includes both antecedents and consequences of Social Media use. Existing research was examined to derive the research hypotheses, which were tested using SEM methodology on a sample of 212 hotels.FindingsThe results show that Social Media use does not exert significant direct impact on organizational performance. Rather, the findings confirm the mediating role played by Social CRM and Customer Engagement capabilities in the value creation process.Practical implicationsThe results demonstrate how Social Media tools should be implemented and managed to generate business value in hotels. Implications yield interesting insights for hotel managersOriginality/valueThis study is a first attempt to analyze empirically the real impact of digital media technologies, particularly Social Media use, drawing on the dynamic capabilities perspective and focusing on service firms (hotels). Including the variable “Organizational Readiness” as a basic prerequisite to benefit from Social Media use enhances the study's novelty and contribution.