Unveiling the Impact of Social Media Usage on Firm Performance: The Mediating Influence of Organizational Agility and Innovation Capability

Abstract

The current research tended to examine the impact of social media usage on firm performance with the mediating role of organizational agility and innovation capability. The methodology used was descriptive correlation with structural equation modelling. For this purpose, 148 managers, deputies and experts of the German automotive industry participated in the study. Data collection was conducted using a questionnaire while analysis of the data utilized the structural equation modeling based the partial least squares method. The findings suggest that social media usage has a substantial and positive impact on innovation capability, organizational agility, and firm performance. Additionally, innovation capability has a notable positive influence on organizational agility and firm performance. Furthermore, organizational agility significantly contributes to firm performance. Both innovation capability and organizational agility play an important mediating role in the relationship between social media usage and firm performance. Moreover, innovation capability acts as a mediator between social media usage and organizational agility, while organizational agility mediates the effect of innovation capability on firm performance. Thus, it can be inferred that social media usage facilitates improvements in firm performance by enhancing organizational agility and innovation capability.

Keywords

• firm performance
• innovation capability
• organizational agility
• social media