Social Media, Loyalty, and Organizational Performance

43 Pages Posted: 4 May 2017 Last revised: 11 May 2017

See all articles by Anil R Doshi

Anil R Doshi

University College London - School of Management

Shiladitya Ray

Independent

Date Written: May 4, 2017

Abstract

We explore the relationship between expressions of loyalty on social media and organizational performance outcomes. Using Twitter and television show ratings, we find that the number of individuals following an organization’s Twitter account prior to the realization of a repeated performance outcome is positively associated with that outcome. We present evidence of the heterogeneity in the effect, showing that the relationship is stronger for organizations that match the demographics of the social network and for niche product categories. We also show that higher levels of a show’s initial following mitigates the relationship between loyalty and performance for shows in niche product categories, and strengthens it for shows in non-niche categories. Our results indicate that social media effectively diminishes the distance between the organization’s boundaries and outside stakeholders. This reduction in distance underlines the importance for firms to manage to their non-transaction interactions on social media.

Keywords: loyalty, performance, television industry, social media, twitter

JEL Classification: L1, L86

Suggested Citation

Doshi, Anil Rajnikant and Ray, Shiladitya, Social Media, Loyalty, and Organizational Performance (May 4, 2017). 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/

Shiladitya Ray

Independent ( email )

No Address Available

Register to save articles to
your library

Register

Paper statistics

Downloads
51
rank
369,678
Abstract Views
1,538
PlumX Metrics