The impact of firms’ social media initiatives on operational efficiency and innovativeness

Hugo K.S. Lam, Andy C.L. Yeung, T.C. Edwin Cheng

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

Social media have been increasingly adopted for organizational purposes but their operational implications are not well understood. Firms’ social media initiatives might facilitate information flow and knowledge sharing within and across organizations, strengthening firm‐customer interaction, and improving internal and external collaboration. In this research we empirically examine the impact of social media initiatives on firms’ operational efficiency and innovativeness. Taking the resource‐based view of firms’ information capability, we consider firms’ social media initiatives as strategic resources for operational improvement. We posit that firms’ social media initiatives enhance dynamic knowledge‐sharing routines through an information‐rich social network, leading to both operational efficiency and innovativeness. Collecting secondary data in a longitudinal setting from multiple sources, we construct dynamic panel data (DPD) models. Based on system generalized method of moments (GMM) estimation, we show that firms’ social media initiatives improve operational efficiency and innovativeness. We identify the importance of an information‐rich social network to the creation of knowledge‐based advantage through firms’ social media initiatives, and discuss the theoretical and managerial implications from the perspective of operations management.
LanguageEnglish
Pages28-43
JournalJournal of Operations Management
Volume47-48
Issue number1
Early online date15 Jul 2016
DOIs
Publication statusPublished - 16 Nov 2016

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Method of moments
Data structures
Social media
Operational efficiency
Innovativeness
Social networks
Knowledge sharing
Knowledge-based
Interaction
Information flow
Resource-based view of the firm
Operations management
Strategic resources
Dynamic panel data model
Generalized method of moments
Secondary data

Keywords

  • Social media
  • Operational efficiency
  • Innovativeness

Cite this

Lam, Hugo K.S. ; Yeung, Andy C.L. ; Cheng, T.C. Edwin. / The impact of firms’ social media initiatives on operational efficiency and innovativeness. 2016 ; Vol. 47-48, No. 1. pp. 28-43.
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The impact of firms’ social media initiatives on operational efficiency and innovativeness. / Lam, Hugo K.S.; Yeung, Andy C.L.; Cheng, T.C. Edwin.

Vol. 47-48, No. 1, 16.11.2016, p. 28-43.

Research output: Contribution to journalArticle

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