Social Media as a Complementary Resource for Organizations

49 Pages Posted: 4 May 2017 Last revised: 15 Feb 2020

See all articles by Anil R Doshi

Anil R Doshi

University College London - School of Management

Tobias Kretschmer

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management); Centre for Economic Policy Research (CEPR)

Shiladitya Ray

Independent

Date Written: February 1, 2020

Abstract

Some assets exist entirely outside the organization's boundaries and as such are not considered resources of the organization in the narrow sense. We argue that to the extent they can be brought within partial control of the organization, these assets can function as resources or resource complements for the organization. One such resource is the community that develops around an organization or its products on social media. We test the value of social media communities to organizations using follower communities of television shows on Twitter and percent household viewership as a performance measure. Controlling for general interest in a show and possible bandwagon effects, we show that larger social media communities are associated with better performance. The effect is stronger for niche products. Among niche products, the relationship is stronger at lower levels of initial followers, whereas for non-niche products the effect is stronger at higher levels.

Keywords: social media, platform complementors, resource based view, strategic openness, digital platforms

Suggested Citation

Doshi, Anil Rajnikant and Kretschmer, Tobias and Ray, Shiladitya, Social Media as a Complementary Resource for Organizations (February 1, 2020). Available at SSRN: https://ssrn.com/abstract=2962956 or http://dx.doi.org/10.2139/ssrn.2962956

Anil Rajnikant Doshi (Contact Author)

University College London - School of Management ( email )

Level 38
1 Canada Square
London, E14 5AA
United Kingdom

HOME PAGE: http://mgmt.ucl.ac.uk/

Tobias Kretschmer

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management) ( email )

Kaulbachstr. 45
Munich, DE 80539
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Shiladitya Ray

Independent ( email )

No Address Available
United States

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