Utilising enterprise social media for product innovation: The role of market orientation

Abstract

The literature on the role of enterprise social media (ESM) utilisation in driving the innovation profiles of organisations has not provided an understanding of the mechanisms of this positive relationship. By conceptualising ESM as including internal and external social media use, this study examined the mediating role of market orientation strategies in the link between ESM use and product innovation. The results of structural equation modeling, among a sample of organisations based in South Africa, show that ESM use positively affects the market orientation strategies of companies and these have a positive effect on product innovation. While inter-functional coordination does not mediate the external social media-product innovation link, it does so in the internal social media-product innovation link. These results imply that organisations that wish to pursue product innovation (and perhaps strategies of differentiation) should use ESM, leveraging their value in knowledge generation and assimilation.