Skip to main content

Examining the Impact of Social Networking Sites on Performance of Service Firms: Evidence from Romania

  • Conference paper
  • First Online:
Exploring Services Science (IESS 2017)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 279))

Included in the following conference series:

  • 2012 Accesses

Abstract

The purpose of this study is to extend research on social networking sites and the role of these tools on business performance of service firms. To date, there has been little investigation of the contribution of these tools in order to identify the opportunities for improving business performance. Using cross-section data from a sample in Romania, we empirically investigated the mediating effects of service innovation on the relationship between social networking sites and business performance. Confirmatory Factor Analysis (CFA) was used to perform reliability and validity checks, and structural equation modelling (SEM) was used to test the research model. The findings fill the gap in the literature by demonstrating social networking sites influence the collaboration, ideas and knowledge sharing among employees, customers, and business partners, leading to growth the business performance. The results also indicate that innovation capability played a key role on business performance but its mediating role between social networking sites and business performance of service firms was not confirmed. Finally, the theoretical and practical implications are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Wang, K.: Determinants of mobile value-added service continuance: the mediating role of service experience. Inf. Manage. J. 52, 261–274 (2015)

    Article  Google Scholar 

  2. McKelvey, M., Lassen, A.H.: Knowledge Intensive Entrepreneurship: Engaging, Learning and Evaluating Venture Creation. Edward Elgar Publishing, Cheltenham (2013)

    Book  Google Scholar 

  3. Malerba, F.: Knowledge Intensive Entrepreneurship and Innovation Systems: Evidence from Europe. Routledge, Abingdon (2010)

    Google Scholar 

  4. Melton, H.L., Hartline, D.M.: Customer and frontline employee influence on new service development performance. J. Serv. Res. 13(4), 411–425 (2010)

    Article  Google Scholar 

  5. Demirel, P., Mazzucato, M.: Innovation and firm growth: is R&D worth it? Ind. Innov. 19(1), 45–62 (2012)

    Article  Google Scholar 

  6. Gunday, G., Ulusoy, G., Kilic, K., Alpkan, L.: Effects of innovation type on firm performance. Int. J. Prod. Econ. 133(2), 662–676 (2011)

    Article  Google Scholar 

  7. Nordman, E.R., Tolstoy, D.: Technology innovation in internationalising SMEs. Ind. Innov. 18(7), 669–684 (2011)

    Article  Google Scholar 

  8. Campbell, B.: Alignment: resolving ambiguity within bounded choices. In: Proceedings of the PACIS, Bangkok, Thailand, pp. 1–14 (2005)

    Google Scholar 

  9. Ghoshal, S., Korine, H., Szulanschi, G.: Interunit communication in multinational corporations. Manage. Sci. 40(1), 96–110 (1994)

    Article  Google Scholar 

  10. Hang, H.L.: Performance effects of aligning service innovation and the strategic use of information technology. Serv. Bus. 8, 171–195 (2014)

    Article  Google Scholar 

  11. Fitzsimmons, J.A., Fitzsimmons, M.J.: Service Management: Operations, Strategy, Information Technology, 6th edn. McGraw-Hill, New York (2008)

    Google Scholar 

  12. Leyden, D.P., Link, A.N.: Toward a theory of the entrepreneurial process. Small Bus. Econo. 44(3), 475–484 (2015)

    Article  Google Scholar 

  13. Stelzner, M.A.: Social media marketing industry report: How marketers are using social media to grow their businesses, [online] social media examiner (2013). http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2013.pdf. Accessed 19 June 2016

  14. Hanna, R., Rohm, A., Crittenden, V.L.: We’re all connected: the power of the social media ecosystem. Bus. Horiz. 54, 265–273 (2011)

    Article  Google Scholar 

  15. Tussyadiah, I., Zach, F.: Social media strategy and capacity for consumer co-creation among destination marketing organizations. In: Cantoni, L., Xiang, Z. (eds.) Information and Communication Technologies in Tourism 2013. Springer, Heidelberg (2013)

    Google Scholar 

  16. Arts, S., Veugelers, R.: Technology familiarity, recombinant novelty and breakthrough invention. Ind. Corp. Change 24(6), 1215–1246 (2015)

    Article  Google Scholar 

  17. Del Giudice, M., Maggioni, V.: Managerial practices and operative directions of knowledge management within inter-firm networks: a global view. J. Knowl. Manage. 18(5), 841–846 (2014)

    Article  Google Scholar 

  18. Scuotto, V., Ferraris, A., Bresciani, S.: Internet of things: applications and challenges in smart cities: a case study of IBM smart city projects. Bus. Process Manage. J. 22(2), 357–367 (2016)

    Article  Google Scholar 

  19. Ordanini, A., Rubera, G.: How does the application of an IT service innovation affect innovation and firm performance? A theoretical framework and empirical analysis on e-commerce. Inf. Manage. J. 47(1), 60–67 (2010)

    Article  Google Scholar 

  20. Hurley, R.F., Hult, G.T.M.: Innovation, market orientation, and organizational learning: an integration and empirical examination. J. Mark. 62(3), 42–54 (1998)

    Article  Google Scholar 

  21. Hansen, M.T., Birkinshaw, J.: The innovation value chain. Harv. Bus. Rev. 85(6), 121–130 (2007)

    Google Scholar 

  22. Baron, R.M., Kenny, D.A.: The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. J. Pers. Soc. Psychol. 51, 1173 (1986)

    Article  Google Scholar 

  23. Tsui, A.S., Ashford, S.J., Clair, L.S., Xin, K.R.: Dealing with discrepant expectations: response strategies and managerial effectiveness. Acad. Manage. J. 38(6), 1515–1543 (1995)

    Article  Google Scholar 

  24. Fornell, C., Larcker, D.F.: Evaluating structural equation models with unobserved variables and measurement error. J. Mark. Res. 18(1), 39–50 (1981)

    Article  Google Scholar 

  25. Hair Jr., J.F., Money, A.H., Samouel, P., Page, M.: Research Methods for Business. Wiley, Chichester (2007)

    Google Scholar 

Download references

Acknowledgement

This work has been funded by University Politehnica of Bucharest, through the “Excellence Research Grants” Program, UPB – GEX. Identifier: UPB–EXCELENTA–2016; research project title: Improving the performance of small and mediumsize enterprises in Romania by implementing the integrated risk management (Acronym: PERFORM), contract no. 55/2016.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Gheorghe Militaru .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing AG

About this paper

Cite this paper

Militaru, G., Deselnicu, DC., Ioanid, A. (2017). Examining the Impact of Social Networking Sites on Performance of Service Firms: Evidence from Romania. In: Za, S., Drăgoicea, M., Cavallari, M. (eds) Exploring Services Science. IESS 2017. Lecture Notes in Business Information Processing, vol 279. Springer, Cham. https://doi.org/10.1007/978-3-319-56925-3_9

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-56925-3_9

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-56924-6

  • Online ISBN: 978-3-319-56925-3

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics