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

Aurora Garrido-Moreno, Víctor J. García-Morales, Stephen King, Nigel Lockett

Research output: Contribution to journalArticlepeer-review

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Abstract

Purpose - Although Social Media use has become all pervasive, previous research has failed to explain how to strategically use Social Media tools to create business value in today’s increasingly digital landscapes. Through adopting dynamic capabilities perspective, this paper empirically examines the specific process through a which Social Media use transforms into organizational performance.
Design/methodology/approach - A research model is proposed including both the antecedents and consequences of Social Media use. Existing research was examined to derive the research hypotheses. Building on a sample of 212 hotels, these hypotheses were tested using a SEM methodology.
Findings – Results confirm the of Social Media use on value creation, showing the key role played by Social CRM and Customer Engagement capabilities on this process. Findings also confirm the relevance of Organizational Readiness as an effective antecedent of Social Media use.
Practical implications – Results illustrate how Social Media tools should be implemented and managed in order to generate real business value in hotels. Implications provide interesting insight for hotel managers.
Originality/value - This study represents a first attempt to empirically examine the impact of digital media technologies, particularly Social Media tools, on value creation, drawing on the dynamic and focusing on service firms, in particular hotels. The inclusion of the variable ‘Organizational Readiness’ as a basic prerequisite to benefit from Social Media use enhances the novelty and contribution of the study.
Original languageEnglish
Pages (from-to)313-343
JournalJournal of Service Management
Volume31
Issue number3
Early online date23 Apr 2020
DOIs
Publication statusPublished - 6 Oct 2020

Keywords

  • social media use
  • dynamic capabilities
  • customer engagement
  • organizational readiness

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