Impact of Social Media Usage on Financial and Non-Financial Performance of Organization through Social CRM

Abstract

Social media usage improves Social Customer Relationship Management (CRM) is highly important for modern firms to create value for business after the rapid growth of technology adoption by customers. Studies on social media and organizational performance are limited so the present study has to extend this topic for a brief analysis of this domain. Hence, the current study aims to investigate further how social media usage benefits both financial and non-financial aspects of organizational performance through social CRM. A quantitative cross-sectional research design was carried out to collect the primary information using a structured questionnaire using two separate surveys; one was filled out by the top management of the organizations while the other was filled out by the respective customer of the organizations from different sectors of Pakistan which were also active on Facebook and lastly each 209 participants in both surveys were selected for data analysis. AMOS and Smart PLS were employed to test this proposed model. All findings of this study are found significantly positive and the social CRM acts as a positive mediator between the direct association of social media usage and organizational performance. Furthermore, the present study offers marketers and businessmen to explain the linkage of CRM with advancing social media technologies to improve organizational performance either financial or non-financial performance.