The Impact of Market Orientation on Social Media Performance through IT Competence and Social Media Capability

After social media have been increasingly popular, most of companies are using them to do advertisement, to communicate with customers, to improve their brand awareness and to do crisis management for doing business. This study suggests a research model to analyze the relationship between market orientation and social media performance through IT competence and social media capability, which is based on strategy and marketing literatures, including competence theory and dynamic capability theory. After reviewing of prior studies, we considered IT competence and social media capability, as mediating variables, that could influence social media performance. Firms are always trying to use social media, because they are market-oriented to hear customer’s voice. This study develops social media capability, as a newly developed construct, that is multidimensional and contains four steps such as planning, deploying, monitoring and responding. This study proves that the more market-oriented organizations tend to develop higher level of social media capability. Furthermore, the organizations with higher level of social media capability have higher competitive advantage than the organizations with lower level of social media capability.