Brand innovation and social media: knowledge acquisition from social media, market orientation, and the moderating role of social media strategic capability

Nguyen, Bang, Yu, Xiaoyu, Melewar, T. C. and Chen, Junsong (2015) Brand innovation and social media: knowledge acquisition from social media, market orientation, and the moderating role of social media strategic capability. Industrial Marketing Management, 51 . pp. 11-25. ISSN 0019-8501 [Article] (doi:10.1016/j.indmarman.2015.04.017)

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Abstract

The study examines the relationships between knowledge acquisition from social media, two forms of market orientation (proactive and reactive), social media strategic capability, and brand innovation strategy in the context of China’s online technology industry. Analysis of 357 online technology ventures, created during the past 6 years, suggests that brand innovation is affected by both knowledge acquisition from social media and market orientation. Social media strategic capability positively affects brand innovation and acts as a moderator between knowledge acquisition, market orientation, and brand innovation. It further enhances both types of market orientations in achieving brand innovation, suggesting that on social media, a customer’s needs, both expressed and latent (or unexpressed), can be identified more comprehensively than that of the traditional setting. Hence, the context of social media provides a different set of rules for competition and strategic behavior, which online technology ventures should note. Implications are useful to improve the current understanding of social media brand innovation strategy, here in China’s dynamic social media scene.

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