Download pdf
Analyzing the Impact of Social Network Position on Firm Performance: A Comprehensive Study
- 1 Department of Finance and Trade, Zhuhai College of Science and Technology, Zhu Hai, Guang Dong,519055, China
* Author to whom correspondence should be addressed.
Abstract
This study attempts to clarify the complex relationship that exists between social networks and corporate performance by introducing price and selling capacities as well as trust as a mediating component. A structural equation model was created using the body of existing research as a basis, and 380 small and medium-sized businesses (SMEs) in Indonesia participated in a survey to provide empirical data. The results show that, in the absence of social network trust, the use of social media in the management process by itself has no effect on the performance of the company. It becomes clear that trust is a major accelerator for the growth of selling and pricing skills, which in turn improves company performance. The survey highlights how important selling and pricing skills are when it comes to using social media, especially when it comes to developing trust. Although the research mostly focuses on small-to-medium-sized businesses and offers insightful information, generalizability to other contexts should be handled cautiously. In order to improve selling skills and expand corporate networks, managers should proactively use social media to improve overall company performance. In conclusion, trust is shown to be a critical mediator between social networks and corporate performance, emphasizing the need for trust in utilizing social media for better management and overall business success.
Keywords
Social network, Firm performance, Selling skills, Pricing Capabilities
[1]. Ferraris, A., Santoro, G., & Dezi, L. (2017). How MNCs subsidiaries may improve their innovative performance? The role of external sources and knowledge management capabilities. Journal of Knowledge Management, 21(3), 540-552.
[2]. Tajvidi, R., & Karami, A. (2021). The effect of social media on firm performance. Computers in Human Behavior, 115, 105174.
[3]. Pratono, A. H. (2018). From social network to firm performance: The mediating effect of trust, selling capability and pricing capability. Management Research Review, 41(6), 680-700.
[4]. Ngai, E. W., Tao, S. S., & Moon, K. K. (2015). Social media research: theories, constructs, and conceptual frameworks. International Journal of Information Management, 35(1), 33-44.
[5]. Dinda, S. (2014). Inclusive growth through creation of human and social capital. International Journal of Social Economics, 41(10), 878-895.
[6]. Dodd, M. D. (2016). Intangible resource management: social capital theory development for public relations. Journal of Communication Management, 20(4), 289-311.
[7]. Wang, Y. (2016). Investigating dynamic capabilities of family businesses in China: a social capital perspective. Journal of Small Business and Enterprise Development, 23(4), 1057-1080.
[8]. Oldroyd, J. B., & Morris, S. S. (2012). Catching falling stars: a human resource response to social capital's detrimental effect of information overload on star employees. Academy of Management Review, 37(3), 396-418.
[9]. Kwon, S. W., & Adler, P. (2014). Social capital: maturation of a field of research. Academy of Management Review, 39(4), 412-422.
[10]. Wang, Y., & Byrd, T. A. (2017). Business analytics-enabled decision-making effectiveness through knowledge absorptive capacity in health care. Journal of Knowledge Management, 21(3), 517-539.
[11]. Del Giudice, M., & Maggioni, V. (2014). Managerial practices and operative directions of knowledge management within inter-firm networks: a global view. Journal of Knowledge Management, 18(5), 841-846.
[12]. Scuotto, V., Del Giudice, M., Bresciani, S., & Meissner, D. (2017). Knowledge-driven preferences in informal inbound open innovation modes. An explorative view on small to medium enterprises. Journal of Knowledge Management, 21(3), 640-655.
[13]. Scuotto, V., Santoro, G., Bresciani, S., & Del Giudice, M. (2017). Shifting intra- and interorganizational innovation processes towards digital business: an empirical analysis of SMEs. Creativity and Innovation Management, 26(3), 247-255.
[14]. Williams, M., Buttle, F., & Biggemann, S. (2012). Relating word-of-mouth to corporate reputation. Public Communication Review, 2(2).
[15]. Pratono, A. H. (2018). From social network to firm performance: The mediating effect of trust, selling capability and pricing capability. Management Research Review, 41(6), 680-700.
[16]. Bicen, P., & Hunt, S. D. (2012). Alliance market orientation, new product development, and resource advantage theory. Journal of Business & Industrial Marketing, 27(7), 592-600.
Cite this article
Liu,Z. (2024). Analyzing the Impact of Social Network Position on Firm Performance: A Comprehensive Study. Advances in Economics, Management and Political Sciences,79,117-123.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 3rd International Conference on Business and Policy Studies
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).