Dynamic firm performance: Entrepreneurship, knowledge, social media, customer relationship management, environment

• Published in: South African journal of business management Vol. 55; no. 1; pp. 1 - 13
• Main Authors: Siddiqui, Faiza, Yusheng, Kong, Ravina-Ripoll, Rafael, Aden, Abdiaziz S
• Format: Journal Article
• Language: English
• Published: African Online Scientific Information Systems (Pty) Ltd t/a AOSIS 2024; AOSIS Publishing
• Subjects: Business; Customer relationship management; Entrepreneurship; Management; Mediation; Small and medium sized companies; Social aspects; Social media; Social networks; China; Ethiopia; environmental dynamism; social media use; firm performance; entrepreneurial orientation; customer relationship management; knowledge-based dynamic capacities
• ISSN: 2078-5585; 2078-5976
• DOI: 10.4102/sajbm.v55i1.4346

Purpose This article establishes a connection between entrepreneurial orientation (EO) and firm performance, exploring the mediating effects of knowledge-based capabilities (KBC), social media use capabilities (SMUCs) and customer relationship management capabilities (CRMCs), with moderation by environmental dynamism (ED). Utilising the resource-based view (RBV) framework and a mediation moderation model, the research empirically explores these connections. Design/methodology/approach Data were gathered via a survey from 900 listed firms in Ethiopia and China, spanning manufacturing and service industries. The questionnaire underwent translation into Chinese and Amharic from English. A quantitative approach, utilising convenience sampling for survey distribution, was employed. SPSS 24 software facilitated mediation analysis, revealing no concerns related to discriminant validity. Findings/results The findings affirm the positive impacts of EO on KBC, SMUC and CRMC in China, while only on SMUC in Ethiopia. In addition, a positive mediation of KBC, SMUC and CRMC between EO and firm performance. Additionally, ED moderated the link between SMUC, CRMC and firm performance. Practical implications Our study recommends that policymakers and managers should invest in training programmes and information technology, organising workshops to educate staff on the effective use of social media tools. This investment holds substantial potential for dynamically transforming business models, processes and customer trends. Originality/value This study adds to the current body of knowledge by exploring EO-firm performance correlation, incorporating the mediating effects of KBC, SMUC and CRMC while considering the moderating influence of ED.