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Blurring the Boundaries Through Digital Innovation pp 161–172Cite as

A Firm’s Activity in Social Media and Its Relationship with Corporate Reputation and Firm Performance

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Part of the book series: Lecture Notes in Information Systems and Organisation ((LNISO,volume 19))

Abstract

There is growing debate about whether companies’ investments in social media really pay off. This research attempts to contribute to this discussion by investigating the relationship between a firm’s social media activity and two outcomes, namely, company reputation and firm financial performance. Two propositions are developed based on theory and tested with a sample of 59 companies. The findings suggest that a firm’s social media activity is only partially linked with its financial performance and is not linked with corporate reputation. The implications of the research suggest that little is known about the relationships between a firm’s social media activity and corporate reputation and financial outcomes.

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Author information

Authors and Affiliations

  1. School of Business and Economics, University of Jyväskylä, Jyväskylä, Finland

    Heikki Karjaluoto, Hanna Mäkinen & Joel Järvinen

Authors
  1. Heikki Karjaluoto
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  2. Hanna Mäkinen
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  3. Joel Järvinen
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Corresponding author

Correspondence to Heikki Karjaluoto .

Editor information

Editors and Affiliations

  1. Department of Management, Sapienza Universitá di Roma, Rome, Italy

    Fabrizio D'Ascenzo

  2. Department of Management and Technology, Bocconi University, Milano, Italy

    Massimo Magni

  3. Department of Human Sciences "R. Massa", University of Milan Bicocca, Milano, Italy

    Alessandra Lazazzara

  4. Faculty of Law, eCampus University, Novedrate, Italy

    Stefano Za

Appendix

Appendix

See Fig. 1.

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© 2016 Springer International Publishing Switzerland

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Karjaluoto, H., Mäkinen, H., Järvinen, J. (2016). A Firm’s Activity in Social Media and Its Relationship with Corporate Reputation and Firm Performance. In: D'Ascenzo, F., Magni, M., Lazazzara, A., Za, S. (eds) Blurring the Boundaries Through Digital Innovation. Lecture Notes in Information Systems and Organisation, vol 19. Springer, Cham. https://doi.org/10.1007/978-3-319-38974-5_13

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