The business value of social media: a dynamic managerial capabilities perspective

Abstract

In the last decade and a half, social media usage has become ubiquitous in the workplace. Prior research has noted both the benefits as well as the potential pitfalls of allowing employees to use social media during work hours. In this research-in-progress paper, we propose a conceptual model that shows how the use of social media may help in the enablement of dynamic managerial capabilities by enhancing the managerial social capital. Thus, this paper adds to the literature on the business value of social media. This paper also shows how two distinct types of social media (i.e., public social media and enterprise social media) play complementary roles in the enhancement of managerial social capital, and consequently, in the enablement of dynamic managerial capabilities. Managerial implications are also discussed.