The Role Of Social Networking Sites On Innovation Capability And Tourism Firms Performance In Malaysia.The Mediate Effect Of Absorptive Capacity

Hussein Al-Shami, Samer Ali (2018) The Role Of Social Networking Sites On Innovation Capability And Tourism Firms Performance In Malaysia.The Mediate Effect Of Absorptive Capacity. Journal Of Hospitality And Tourism Technology, 23. pp. 1-15. ISSN 1757-9880

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Abstract

Social Network Sites (SNSs) are perceived as the most important sources for external knowledge transform.The interaction between external knowledge that derived from customers,competitors,suppliers,interested parties,and the internal knowledge that develop in the firms has the potential to advance their absorptive capacity and innovation performance which leads to improve their performance.A few studies in the literature have partially investigated the relationship between the SNSs and innovation capability.Yet,the research related to the role of SNSs on firms’performance through innovation, especially in emerging countries is still lacking. Design/methodology/approach:Based on resource based view, this paper aims to scrutinize the association between SNSs on the firms’ performance and how the utilisation of SNSs is able to create more values on the absorptive capacity that mediates the relationship between SNSs and innovation capability.It also scrutinizes how the mediate effect of innovation capability on the relationship SNSs and firms’ innovation.A survey was distributed to 219 of firms from the Malaysian tourism industry and analysed using the Structural Equation Modelling.Finding:the results shows that the SNSs have a positive effect on the innovation capacity,meanwhile the innovation capacity is fully mediated the association between social networks and enterprises’ performance.In addition,the association between SNSs and firms’ absorptive capacity is significant,while the association between SNSs and innovation is partially mediated by absorptive capacity. Practical implications:It is required for small and medium-sized enterprises,especially those working in the tourism sector,to activate SNSs in their business activities,not only for marketing activities,but also in the development of innovation activities.This is done by opening some social communication platforms (Facebook, Twitter,YouTube,etc.) with customers and suppliers where knowledge and information can be exchanged and transferred.In order to maximize the value of information obtained through social networks,companies are required to seek for customers’ opinion about their targeted innovative activities.Originality/value:Due to the fact that customers from worldwide have their own experience and knowledge about particular services and products which are not known by the tourism firms in Malaysia and elsewhere,SNSs plays a key role in gathering the needed information which is they key driver of business development through developing new product or services based on customers and suppliers view of point.In this respect and according to the literature in developing countries,the relationship between SNSs and innovation has not yet received a considerable attention,especially in the southeast Asia region such as Malaysia where no study has been conducted.Thus,the associations established in this study constitute an important contribution to the current knowledge of shared creativity,service innovation,and SNSs.

Item Type:	Article
Uncontrolled Keywords:	Social Network, Sites, Firms’, Innovation, Absorptive, Capacity, Performance
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Institute of Technology Management And Entrepreneurship
Depositing User:	Mohd. Nazir Taib
Date Deposited:	16 Aug 2019 03:10
Last Modified:	30 Aug 2021 17:01
URI:	http://eprints.utem.edu.my/id/eprint/23033
Statistic Details:	View Download Statistic

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