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Social media use in international marketing: Impact on brand and firm performance

Marzanna K. Witek-Hajduk
Marzanna K. Witek-Hajduk
 und 
Piotr Zaborek
Piotr Zaborek
   | 30. Juni 2022
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Article Category: Empirical Paper
Online veröffentlicht: 30. Juni 2022
Seitenbereich: 121 - 142
Eingereicht: 02. Dez. 2021
Akzeptiert: 11. Juni 2022
DOI: https://doi.org/10.2478/ijme-2022-0011
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© 2022 Marzanna K. Witek-Hajduk et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1

Conceptual model of the research.Source: Own elaboration.
Conceptual model of the research.Source: Own elaboration.

Figure 2

Estimated structural equation model for relationships of social media marketing with brand and firm performance.Source: Own elaboration.SM, social media; SMM, SM marketing.
Estimated structural equation model for relationships of social media marketing with brand and firm performance.Source: Own elaboration.SM, social media; SMM, SM marketing.

Regression weights and significance levels in the structural model (estimation with the bootstrapping method using 5,000 resamples)

Regression paths Regression weights (beta) t-statistics p-values
Customer orientation →SMM engagement: Market research 0.176 1.845 0.066
Customer orientation →SMM engagement: Brand equity creation 0.430 3.789 0.000
Customer orientation →SMM engagement: Sales support 0.111 1.191 0.234
Customer orientation →SMM engagement: Information dissemination 0.335 3.422 0.001
Brand orientation → SMM engagement: Market research 0.038 0.391 0.696
Brand orientation → SMM engagement: Brand equity creation 0.072 1.152 0.250
Brand orientation → SMM engagement: Sales support 0.047 0.519 0.604
Brand orientation → SMM engagement: Information dissemination 0.032 0.435 0.663
SMM engagement: Market research → Brand performance −0.027 0.4 0.689
SMM engagement: Brand equity creation → Brand performance 0.498 5.866 0.000
SMM engagement: Sales support → Brand performance 0.114 2.955 0.003
SMM engagement: Information dissemination → Brand performance −0.062 1.092 0.275
Customer orientation → Brand performance −0.016 0.227 0.821
Brand orientation → Brand performance 0.055 1.277 0.202
SM content localization → Brand performance 0.119 1.804 0.072
Foreign partners’ SMM involvement → Brand performance 0.151 2.476 0.014
Control over SMM → Brand performance 0.058 1.198 0.231
Customer orientation * Market research → Brand performance 0.089 1.742 0.082
SM content localization * Information dissemination → Brand performance 0.099 2.161 0.031
Foreign partners’ SMM involvement * Market research → Brand performance −0.152 2.429 0.016
Foreign partners’ SMM involvement * Brand equity creation → Brand performance −0.281 3.854 0.000
Control over SMM * Sales support → Brand performance −0.092 1.839 0.067
Brand performance→ ROA 0.092 2.561 0.011

Comparison of regression weights in the structural model for firms with only Polish capital and those controlled fully or partially by foreign owners

Regression paths Regression weights Difference Modulus of difference
Only Polish capital Some or all foreign capital
Customer orientation → SMM engagement: Brand equity creation 0.448 0.214 0.234 0.234*
SMM engagement: Brand equity creation → Brand performance 0.426 0.647 −0.221 0.221*
Brand orientation → SMM engagement: Information dissemination 0.087 0.259 −0.172 0.172*
Customer orientation → Brand performance 0.038 0.210 −0.172 0.172*
SM content localization → Brand performance 0.211 0.049 0.162 0.162*
Foreign partners’ SMM involvement * Market research → Brand performance 0.246 0.091 0.155 0.155*
Customer orientation → SMM engagement: Information dissemination 0.350 0.217 0.133 0.133
Brand orientation → SMM engagement: Market research 0.142 0.264 −0.122 0.122
Foreign partners’ SMM involvement * Brand equity creation → Brand performance 0.287 0.176 0.111 0.111
Control over SMM → Brand performance 0.041 0.135 −0.094 0.094
Customer orientation → SMM engagement: Market research 0.179 0.088 0.091 0.091
Control over SMM * Sales support → Brand performance 0.066 0.139 −0.073 0.073
SM content localization * Information dissemination → Brand performance 0.071 0.144 −0.073 0.073
Brand orientation → SMM engagement: Sales support 0.065 0.005 0.060 0.06
Customer orientation → SMM engagement: Sales support 0.156 0.108 0.048 0.048
Brand orientation → SMM engagement: Brand equity creation 0.129 0.087 0.042 0.042
Foreign partners’ SMM involvement → Brand performance 0.165 0.130 0.035 0.035
Brand performance→ ROA 0.099 0.078 0.021 0.021
SMM engagement: Market research → Brand performance 0.09 0.071 0.019 0.019
Brand orientation → Brand performance 0.056 0.039 0.017 0.017
SMM engagement: Information dissemination → Brand performance 0.088 0.077 0.011 0.011
SMM engagement: Sales support → Brand performance 0.109 0.103 0.006 0.006
Customer orientation * Market research → Brand performance 0.107 0.105 0.002 0.002

Likert-scale items used to provide indicators for reflective construct in the study, along with their literature sources and metrics of reliability and validity

Likert-scale items (1 – completely disagree, 5 – completely agree) Factor loadings Sources
Customer orientation (AVE = 0.544; composite reliability = 0.877)
We constantly monitor our customers’ needs 0.762 Mueller et al. [2001]
We are aware of how customers perceive our brands and products 0.769 Deshpandé et al. [1993]
In our organization, employees receive incentives based on customer satisfaction measures 0.657 Dutot and Bergeron [2016]; Trainor et al. [2014]
In our organization, business processes are designed to enhance the quality of customer interactions 0.702
In our organization, various functional areas coordinate their activities to enhance the quality of customer experience 0.785
Customer needs always come first, even before the requirements of our owners/shareholders 0.744
Brand orientation (AVE = 0.560; composite reliability = 0.910)
Branding flows through all our marketing activities 0.734 Wong and Merrilees [2008], and own elaboration
All our departments that contribute to marketing decision-making are also involved in branding 0.655
Branding is essential to our strategy 0.786
Our brands are the strategic starting point for all our business operations 0.803
Long-term brand planning is critical to our future success 0.748
Our brands are an important asset to us 0.593
Everyone in our company appreciates that branding is the priority for our business 0.841
All our business decisions are assessed in terms of how they affect our brands 0.794
SMM engagement: Brand equity creation (AVE = 0.606; composite reliability = 0.901)
We use SM to involve customers in online communities for our key brand 0.807 Dutot and Bergeron [2016], and own elaboration
We use SM for creating the desired image of our key brand 0.870
We use SM to distinguish our key brand from that of competitors 0.847
We react swiftly to changes in customer needs and behavior revealed by SM 0.679
SM activities by our different departments are well coordinated 0.626
We follow SM to make sure that our key brand is viewed favorably by customers 0.810
SMM engagement: Information dissemination (AVE = 0.734; composite reliability = 0.917)
We have frequent interdepartmental meetings to discuss market trends identified via SM 0.900 Trainor et al. [2014]
Marketing personnel spend time discussing customers’ future needs identified on SM applications with other departments 0.882
Data collected using SM on customer satisfaction are disseminated at all levels on a regular basis 0.840
When one department finds out something important about competitors using SM, it is quick to alert other departments 0.801
SMM engagement: Market research (AVE = 0.543; composite reliability = 0.768)
We use SM to conduct market research 0.978 Dutot and Bergeron [2016], Trainor et al. [2014], and own elaboration
We use SM to detect changes in our customers’ product preferences 0.647
SM are instrumental in collecting vital data for enhancing customers’ loyalty toward our key brand 0.504
SMM engagement (AVE = 0.549; composite reliability = 0.708)
We enable customers to buy our products via SM 0.752 Dutot and Bergeron [2016], and own elaboration
Consumers can report and resolve complaints using our SM apps 0.729
SM content localization (AVE = 0.677; composite reliability = 0.912)
Our key brand's SM profiles are run in the languages of the countries where we sell our products 0.648 Own elaboration based on Okazaki and Rivas [2002]; Witek-Hajduk [2018]
We adjust the content of our key brand's SM profiles to the cultural specificity of the countries where we sell our products 0.857
We adapt creative strategies in SM (including sales arguments, emotional references, and symbolism) to the cultural values of the target countries 0.821
We adjust the content of the posts that we publish on SM to the specific characteristics of our customers 0.862
We make sure that the layouts of our key brand's SM profiles are in agreement with the cultural specificity of our customers 0.903
Foreign partners’ SMM involvement (AVE = 0.509; composite reliability = 0.744)
We cooperate with internationally recognized influencers/bloggers 0.505 Own elaboration based on Witek-Hajduk [2018]
We cooperate with influencers/bloggers who are known only locally in the target country 0.625
We encourage our partners in foreign countries (franchisees, distributors, retailers, and so on) to promote our key brand in SM 0.939
Control over SMM (AVE = 0.505; composite reliability = 0.752)
Our headquarters coordinates our key brand's SM communication strategy in the countries where we sell our products 0.699 Own elaboration based on Witek-Hajduk [2018]
Our headquarters provides our local foreign-country partners with guidelines and content for publishing in SM 0.645
Posts and other brand-related content are published by our local partners in SM only with our agreement 0.780

Discriminant validity of reflective constructs according to the Fornell–Larcker criterion

Control over SMM SM content localization Customer orientation Brand orientation Foreign partners’ SMM involvement SM engagement: Market Research SM engagement: Brand equity creation SM engagement: Sales support SM engagement: Information dissemination
Control over SMM 0.710
SM content localization 0.264 0.823
Customer orientation 0.209 0.299 0.738
Brand orientation 0.181 0.179 0.545 0.748
Foreign partners’ SMM involvement 0.117 0.130 0.081 0.130 0.714
SM engagement: Market Research 0.275 0.245 0.197 0.134 0.268 0.737
SM engagement: Brand equity creation 0.272 0.646 0.469 0.306 0.097 0.228 0.778
SM engagement: Sales support 0.128 0.262 0.137 0.108 0.084 0.126 0.261 0.741
SM engagement: Information dissemination 0.266 0.350 0.318 0.151 0.177 0.489 0.500 0.222 0.856
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