The Effect of Social Media Capabilities on Market Capitalizing Agility with Exploitative and Exploratory Innovation as mediating variables

Abstrak

This study aims to investigate the effect of social media capabilities on market capitalizing agility in both direct and indirect manners through exploitative and exploratory innovation. Two hundred and thirty-five respondents participated in this study. Partial Least Square analysis was used to analyse the data. The results of measurement analysis shows that measures used are valid and reliabile. Thus, hypotheses can be tested. The results indicate that social media capabilities has a direct significant effect on market capitalizing agility. Apart from its direct effect on market capitalizing agility, this study found that exploitative innovation mediates the impact of social media capabilities on market capitalizing agility. In addition, this study showed that social media capabilities has important role in affecting both exploitative and exploratory innovation. After accomplishing the research objectives, this study provides both theoretical and practical contributions.