The Mediating Role of Knowledge Creation Processes in the Relationship Between Social Media and Open Innovation

Abstract

The purpose of the study is to empirically examine the role of absorptive capacity, as a set of knowledge creation processes, in the relationship between social media and open innovation in the family firm context. In addition, the study analyses the impact of social media use as an antecedent of open innovation in the firms. The examined sample was composed by 113 responding family firms in Spain. The model was estimated through PLS-SEM with smartPLS software 3.3.3. Results confirm the key role played by absorptive capacity in the relationship between social media use and open innovation, proving also how social media use appears as a relevant enabler of open innovation practices. Moreover, findings support the importance of social media use for acquiring external information and knowledge which in turn can help family firms to gain more innovative opportunities. Our paper suggests that managers of family firms should foster an appropriate culture of learning in their firms and provide specific training to develop the staff ability to acquire, integrate and use information captured by digital platforms. Social media has totally transformed the way firms relate to the market and provides a useful tool to collect external knowledge and information. These tools are used by family firms as a new form to connect and collaborate with different stakeholders, so they have the potential to enhance open innovation activities. However, empirical research on the topic remains scarce and is challenging for managers to benefit from all the potential that social media can bring in fostering innovation and to develop dynamic capacities of knowledge management in the family firm context. This work sheds light on this topic.