The Beneficial of Social Media Platform Strategy on Firm Financial Performance
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Published:
Apr 11, 2023
Keywords:
Social Media,, Financial Firm Performance, Financial Firm
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Articles
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Abstract
The purpose of this study is to empirically prove the effect of social media use on the company's financial performance. This research is quantitative research, the data is processed with multiple linear regression models to analyse the effect of social media use on the company's financial performance. The proxies used to measure social media used are brand awareness, brand engagement, and word of mouth. The results concluded that the use of social media through the proxy of word of mouth affects the company's financial performance in the short term. This study uses social culture theory to explain the benefits of social capital that will be obtained by companies when deciding to join social media, where companies that use social media will receive more information so that they have greater social capital to support their company's financial performance.
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How to Cite
Zulfatillah, A., & Abrory, R. (2023). The Beneficial of Social Media Platform Strategy on Firm Financial Performance. ProBisnis : Jurnal Manajemen, 14(2), 136–143. https://doi.org/10.62398/probis.v14i2.103
References
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Du, H., & Jiang, W. (2015). Do Social Media Matter?, Initial Empirical Evidence. American Accounting Association, Vol. 29, (2), 51-70. (doi: 10.2308/isys-50995).
Hoffman, DL., & Fodor, M. (2010). Can You Measure The ROI of Your Social Media Marketing?. MIT Sloan Management Review, Vol. 52, (1), 41-49.
Kamboj, S., Kumar., & Rahman. (2017). Social media usage and firm performance: the mediating role of social capital. Social Network Analysis and Mining, Vol. 7, (1), 51-65. (doi: 10.1007/s13278-017-0468-8).
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Rodriguez, M., & Peterson, RM. (2012). Social Media’s Influence on Business-to-Business Sales Performance. Journal of Personal Selling & Sales Management, Vol. 32, (3), 365-378. (doi: 10.2753/PSS0885-3134320306).
Rosman, R., & Stuhura, K. (2013). The Implication of Social Media on Customer Relationship Management and the Hospitality Industry. Journal of Management Policy and Practice, Vol. 14, (3). (doi: 10.1080/19368623.2011.536074).
Shiniederjans, D. (2013) Enhancing financial performance with social media: An impression management perspective. Decision Support Systems, Vol. 55, 911-918. (doi: 10.1016/j.chb.2017.09.026).
Shwu-Min, H., & Chih-Lun, W. (2017). How behaviors on social network sites and online social capital influence social commerce intentions. Information & Management. (doi: 10.1016/j.im.2019.103176).
Song, Q., Wang, Y., Chen, Y., Benitez, J., & Hu, J. (2019). Impact of the usage of social media in the workplace on team and employee performance. Information & Management. (doi: 10.1016/j.im.2019.04.003).
Tajvidi, R., & Karami, A. (2017). The effect of social media on firm performance. Computers in Human Behavior, 1-10. (doi: 10.1016/j.chb.2017.09.026).
Zhang, M., Guo, L., Hu, M., & Liu, W. (2017). Influence of customer engagement with company social networks on stickiness: Mediating effect of customer value creation. International Journal of Information Management, Vol. 37, (3), 229-240. (doi:10.1016/j.ijinfomgt.2016.04.010).
Zubielqui,GC., Fryges, H., & jones, J. (2017). Social media, open innovation, & HRM: Implications for performance. Tchnological Forecasting & Social Change. (doi: 10.1016/j.techfore.2017.07.014).
Agostino, D., & Sidorova, Y. (2016). A performance measurement system to quantify the contribution of social media: new requirements for metrics and methods. Measuring Business Excellence, Vol. 20, (2), 38-51. (doi: 10.1108/MBE-05-2015-0030)
Akmese, H., Aras, S., & Akmese, K. (2016). Financial Performance and Social Media: A Research on Tourism Enterpises Quoted in Istanbul Stock Exchange (BIST). Procedia Economic and Finance, (39), 705-710. (doi: 10.1016/S2212-5671(16)30281-7).
Alarcon, MC., & Rialp, A. (2016). The Effect of Social Media Adoption on Exporting Firm’s Performance. Advances in International Merketing, Vol. 25, 161-186. (doi:10.1108/S1474-797920140000025007).
Baccarella, CV., Wagner, TF., Kietzmann, JH., & McCarthy, IP. (2018). Social media?, It’s serious! Understanding the dark side of social media. European Management Journal, Vol. 36, 431-438. (doi: 10.1016/j.emj.2018.07.002).
Bonson, E., & Ratkai, M. (2013). A set of metrics to assess stakeholder engagement and social legitimacy on a corporate facebook page. Online Information Review, Vol. 27, (5), 787-803. (doi: 10.1108/OIR-03-2012-0054).
Carrasco, P., & Michelon, G. (2017). The Power of Stakeholders’ Voice: The Effect of Social Media Activism on Stock Markets. Business Strategy and The Environment, Vol. 26, (6), 855-872. (doi: 10.1002/bse.1973).
Chung, S., Animesh, A., & Han, K. (2015). The Business Value of Firms’ Social Media Efforts: Evidence from Facebook. ACM International Conference Proceeding Series, Article No. 36. (doi: 10.1145/2781562.2781604).
Culnan, MJ., McHugh, P., & Zubilaga, JI. (2010). How Large U.S. Companies Can Use Twitter and Other Social Media to Gain Business Value. MIS Quarterly Executive, Vol. 9, (4), 243-259.
Dhutot, V., & Lichy, J. (2019). The Role of Social Media in Accelerating the Process of Acculturation to the Global Consumer Culture: An Emirical Analysis. International Journal of Technology and Human Interaction, Vol. 15, (1). (doi: 10.4018/IJTHI.2019010105).
Du, H., & Jiang, W. (2015). Do Social Media Matter?, Initial Empirical Evidence. American Accounting Association, Vol. 29, (2), 51-70. (doi: 10.2308/isys-50995).
Hoffman, DL., & Fodor, M. (2010). Can You Measure The ROI of Your Social Media Marketing?. MIT Sloan Management Review, Vol. 52, (1), 41-49.
Kamboj, S., Kumar., & Rahman. (2017). Social media usage and firm performance: the mediating role of social capital. Social Network Analysis and Mining, Vol. 7, (1), 51-65. (doi: 10.1007/s13278-017-0468-8).
Masa’deh, R., Tayeh, M., Jarrah, I., & Tarhini, A. (2015). Accounting vs. Market-based Measures of Firm Performance Related to Information Technology Investments. International Review of Social Sciences and Humanities, Vol. 9, (1), 129-145.
Paniagua, J., & Sapena, J. (2014). Business performance and social media: Love or hate?. Business Horizons, Vol. 57, 719-728. (doi: 10.1016/j.bushor.2014.07.005).
Rodriguez, M., & Peterson, RM. (2012). Social Media’s Influence on Business-to-Business Sales Performance. Journal of Personal Selling & Sales Management, Vol. 32, (3), 365-378. (doi: 10.2753/PSS0885-3134320306).
Rosman, R., & Stuhura, K. (2013). The Implication of Social Media on Customer Relationship Management and the Hospitality Industry. Journal of Management Policy and Practice, Vol. 14, (3). (doi: 10.1080/19368623.2011.536074).
Shiniederjans, D. (2013) Enhancing financial performance with social media: An impression management perspective. Decision Support Systems, Vol. 55, 911-918. (doi: 10.1016/j.chb.2017.09.026).
Shwu-Min, H., & Chih-Lun, W. (2017). How behaviors on social network sites and online social capital influence social commerce intentions. Information & Management. (doi: 10.1016/j.im.2019.103176).
Song, Q., Wang, Y., Chen, Y., Benitez, J., & Hu, J. (2019). Impact of the usage of social media in the workplace on team and employee performance. Information & Management. (doi: 10.1016/j.im.2019.04.003).
Tajvidi, R., & Karami, A. (2017). The effect of social media on firm performance. Computers in Human Behavior, 1-10. (doi: 10.1016/j.chb.2017.09.026).
Zhang, M., Guo, L., Hu, M., & Liu, W. (2017). Influence of customer engagement with company social networks on stickiness: Mediating effect of customer value creation. International Journal of Information Management, Vol. 37, (3), 229-240. (doi:10.1016/j.ijinfomgt.2016.04.010).
Zubielqui,GC., Fryges, H., & jones, J. (2017). Social media, open innovation, & HRM: Implications for performance. Tchnological Forecasting & Social Change. (doi: 10.1016/j.techfore.2017.07.014).