Search

Improvement in social media (SM) platforms and their ability to enable small and medium-sized enterprises (SMEs) to reach a large audience has led to changes in how entrepreneurial firms carry out their regular activities. Studies on entrepreneurship and SM adoption are relatively new and fragmented; however, there is scant interest from managers, scholars, and governments for future research work in this area in emerging countries. This study aims to investigate the role of SM adoption and innovation capabilities (IC) in improving SME performance. We employ the resource-based view (RBV) as a basis for the conceptual model and infer relationships between entrepreneurial orientation (EO), SM adoption, IC, and SME performance. A closed-ended questionnaire was administered to collect data through a web-based survey and quantitative analysis was employed to generalise the results. The proposed relationships are tested on a sample of 431 randomly selected SMEs, applying the PLS algorithm, bootstrapping, and blindfolding techniques using SmartPLS 3.0. The findings reveal that SME performance could be improved by EO, SM adoption, and IC. Additionally, SM adoption significantly mediates the EO–SME-performance relationship, and IC moderates the SM-adoption–SME-performance association. This paper also makes several theoretical and practical contributions. [ABSTRACT FROM AUTHOR]

The optimal distinctiveness perspective argues that firms face competing pressures to be both 'like' and 'different from' their peers. On the one hand, institutional scholars assert that firms need to be similar to peers in order to gain legitimacy. On the other hand, strategy scholars insist that firms need to strive to be different to gain competitive advantage. In order to enrich the optimal distinctiveness perspective, the present study builds a conceptual model that addresses the relationships among organisational regulatory legitimacy, entrepreneurial orientation, and SME innovation under the context of China's transition economy. Our empirical results show that organisational regulatory legitimacy has an inverted-U relationship with SME innovation. Further, entrepreneurial orientation strengthens this inverse-U shaped relationship. That is, entrepreneurial orientation magnifies both the positive and the negative effect of organisational regulatory legitimacy on SME innovation. This study echoes to the call to conduct broader optimal distinctiveness research by integrating institutional theory and strategic management. Furthermore, our findings provide new evidence for the strategic balance perspective of optimal distinctiveness. [ABSTRACT FROM AUTHOR]