Social Media Resources and Export Performance: The Role of Trust and Commitment
Social Media Resources and Export Performance: The Role of Trust and Commitment
https://www.emerald.com/insight/0265-1335.htm
and commitment
Mahmoud Abdulai Mahmoud 273
Department of Marketing and Entrepreneurship, University of Ghana, Accra, Ghana
and Received 19 February 2019
Revised 10 October 2019
Department of Marketing Management, University of Johannesburg, Johannesburg, 9 December 2019
Accepted 14 December 2019
South Africa
Matilda Adams and Aidatu Abubakari
Department of Marketing and Entrepreneurship, University of Ghana, Accra, Ghana
Nicholas Oblitei Commey
Department of Marketing and Entrepreneurship, University of Ghana, Accra, Ghana
and
Heritage Christian College, Accra, Ghana, and
Adelaide Naa Amerley Kastner
Department of Marketing, Central University, Ghana, Accra, Ghana
Abstract
Purpose – The study sought to examine the influence of social media resources on export performance and the
role commitment and trust play in this relationship using an integrated model.
Design/methodology/approach – A quantitative survey design was employed for this study. Empirical
data for this paper were drawn from 210 exporting firms in Ghana, using purposive sampling technique. The
hypothesized links were analyzed using structural equation modeling.
Findings – The result of this study reveals that social media resources and marketing capabilities directly
influence export performance and indirectly through commitment and trust.
Originality/value – To the best of the authors’ knowledge, this study is among the first to attempt to use an
integrated model (resource-based view and commitment-trust theory) to understand and explain an
international marketing phenomenon. By concentrating on Ghana, the study offers new insights regarding the
pathway for exporting firms in emerging markets.
Keywords International marketing, Social media, Marketing capabilities, Export performance, Commitment,
Trust and resource base view
Paper type Research paper
Introduction
In recent times, the surge in technological advancements and the hype surrounding the use of
social networking sites have transformed the digital landscape and how organizations interact
with their consumers globally (Hofacker and Belanche, 2016). The transformation in the media
landscape has reached an extent where the existence of exporting ventures is likely to be
threatened, unless these firms respond affirmatively to contemporary mode of building and
managing both transactional and relational ties with their customers (Tsai and Men, 2017). As a
result, many firms are now incorporating social media platforms such as Facebook, Twitter,
Instagram, among others into their marketing communications in the quest of reaching their
customers and creating interactive brand communities (Johnston et al., 2018). International Marketing Review
Studies have indicated social media usage offers businesses several benefits (Kenly and Vol. 37 No. 2, 2020
pp. 273-297
Poston, 2016; Alarcon, et al., 2015). For instance, Alarcon, et al. (2015) assert that social media © Emerald Publishing Limited
0265-1335
provides faster access to markets that are outside the immediate geographical reach of firms, DOI 10.1108/IMR-02-2019-0084
IMR thus reducing the barriers of distance and time; serves as an inexpensive means for
37,2 communicating product information to customers (Berthon et al., 2012); and can be used as a
strategic resource to gain competitive advantage (Skarmeas, et al., 2016). This indicates that
more studies are needed across diverse contexts in assessing social media as a resource and its
influence on firms’ performance in order to advance theory (Ratchford, 2015). Arguably, it
appearsthat a good number of studies on social media have been undertaken from the
perspectives of firms (Kenly and Poston, 2016; Alarcon, et al., 2015) and consumers (Berthon
274 et al., 2012; Whiting and Williams, 2013). Despite the numerous studies on social media, deficits
exist in the extant literature, beseeching the attention of scholars’ in the marketing discipline.
First, in the marketing context, resources include building relationships, brands and
knowledge which often differ from resources in other contexts (Kozlenkova et al., 2014). The
resource-based view (RBV) theorizes that resources that are valuable, rare, inimitable and
non-substitutable can help achieve sustainable competitive advantage for firms (Barney,
1991). In line with this view, we theorize that social media and marketing capabilities are
resources that encompass the relationships a firm builds with its customers through its social
media platforms, and these relationships can be valuable resources that will be difficult or too
costly for others to imitate. However, despite its increasing relevance in both practice and
theory, a limited number of studies have examined social media as a resource, though extant
studies reveal that intangible resources have a greater effect on sustained competitive
advantage and performance than tangible resources (Kozlenkova et al., 2014). Hence, there is
a need for further assessment of the nexus between social media resources and export
performance, especially with its growing utilization in the business world today.
Secondly, data on social media and performance are biased toward the advanced countries
(Gao et al., 2018; Hudson et al., 2016; Alarcon et al., 2015), with relatively little evidence on the
subject from emerging economies, especially Ghana (Ahmad et al., 2018; Odoom et al., 2017).
This situation is worrying, since recent research indicates that emerging markets contribute
considerably to the marketing discipline (Sheth, 2011). To this end, empirical studies from these
contexts would present unique perspectives and also provide new theoretical developments
and implications for practice. Moreover, Sheth (2011) argues that market heterogeneity,
contextual disparities and sociopolitical environment in developed and developing economies
are totally different. As a result, Drazin and Schonhoven (1996) have questioned the
generalizability of findings from the developed economies to other economies, as findings may
be context-bound and not universally generalizable (see Li and Zhou, 2010; Boso et al., 2013).
Thus, based on the contextual disparity argument and as part of contributing to the
international marketing literature, this study uses empirical data from an emerging economy,
specifically Ghana, to contribute to the theory of development and offer managerial insights.
Ghana presents a unique case because just like any other developing or emerging market,
the economic activities of exporting firms or SMEs drive its gross domestic product (GDP)
(Nieto and Santamaria, 2010; Odoom, 2017; Abor and Quartey, 2010). However, evidence
exists to suggest that exporting firms from such settings are overwhelmed with persistent
scarcity of resources as well as infrastructural challenges (Sheth, 2011; Odoom et al., 2017).
For instance, Odoom et al. (2017) aver that most exporting ventures in developing economies
like Ghana lack the skills and the needed resources to employ external marketing support to
promote their products and services effectively to attain competitive advantage. The
situation has compelled most smaller firms engaging in exporting activities in Ghana to
adopt cheaper means of communicating their offerings and interacting with their customers
through social media, which is considered a more cost-efficient means of communicating
(Hanna et al., 2011; Ainin et al., 2015). Indeed, this move can also be attributed to the shift in
media consumption in recent times, which has resulted in the use of social media by firms as a
major platform for strategically communicating, informing and interacting with their clients
(Odoom et al., 2017). Thus, it offers an interesting route for exporting SMEs to boost their
export performance in overseas markets. Hence, a study like this is opportune in this context, Social media
to provide understanding and knowledge on how social media resources are being used by and export
exporting firms in Ghana to enhance their capabilities and performance.
In addition, some scholars have argued that the possession of unique resources alone does
performance
not sustain competitive advantage; instead, a firm needs to have the capability (e.g. relational
and informational capabilities) to deploy those resources effectively (Tan and Sousa, 2015).
Barney (1991) also argues that a firm’s ability to build trust and commitment with its
customers improves the sustainability of realized competitive advantages, which 275
subsequently leads to performance. In a similar vein, Leonidou et al. (2014) provide
evidence of the usefulness of trust and commitment in the exporter-customer relationships.
These authors suggest that trust and commitment are critical in this relationship, because they
reduce the risks and uncertainties associated with the large geographical and psychological
distance between the exporter and the overseas client. Despite the potential usefulness of trust
and commitment in providing a more insightful and comprehensive understanding of
exporting relationships, there is yet to be a study that has empirically tested these two
relational tenets on the resources, capabilities and export performance relationship (Leonidou
et al., 2008). As a result, Feng et al. (2017) have called for the mediation of the marketing
capabilities and export performance relationship so as to comprehend the mediating
mechanisms of how marketing capabilities impact exporting firm’s performance. Scholars
such as Bloemer et al. (2013) and Da Rocha et al. (2012), therefore, suggest that mediating
variables such as trust and commitment be incorporated in the export performance model.
Accordingly, this study draws on the commitment-trust theory, to develop and test these
two relational variables on the resources-capabilities-performance relationship, which is
critical for export success (Leonidou et al., 2008). This is particularly important in this study
because exporting firms in Ghana have limited resources, and consequently, it is important
that the firms, in addition to the resources and capabilities they possess, build trust and
commitment by cooperating with their foreign clients to preserve investments relationships
to help sustain competitive advantage which, in turn, leads to enhanced export performance
(Morgan and Hunt, 1994).
Finally, extant literature suggests that theories that originate from the developed
countries may not be able to sufficiently explain the issues of developing countries, possibly
due to contextual and other environmental factors (Wright et al., 2005; Meyer and Peng, 2005).
For instance, Meyer and Peng (2005) argue that the types of resources and capabilities that
help to achieve competitive advantage in emerging markets are different from that of the
developed markets. Consequently, with the nuances varying across the different economic
settings, we recognize the need to establish a better understanding of context-specific issues
in marketing, since without it, scholars and practitioners alike may be misled and vulnerable
to leaky idiosyncrasies. The paper further argues that similar to most of the constructs
utilized in business management research, no single theory is sufficiently enough to explain
the complexities in a given phenomenon (Chen, et al., 2016). Thus, the authors assert that
depending on the research standpoint, multiple theories could be employed to help provide an
improved understanding of the nuances regarding the research area.
From the foregoing discussion, the current paper makes two major contributions to the
growing body of literature. First, in terms of international marketing theory building, this
paper contributes to the international marketing literature by providing a validated model by
drawing on the RBV and commitment-trust theory to depict the relationships between social
media resources, marketing capabilities, trust, commitment and export performance. This
study departs from previous studies that utilized single theories (e.g. RBV), by extending the
RBV to include commitment and trust as mediators in the export performance model, in an
attempt to understand how these theories help to explain the idiosyncrasies and contextual
variations surrounding emerging economies such as Ghana. Second, the findings of this
IMR study offer international marketers or exporting managers a better understanding of the
37,2 strategies/activities they need to adopt to achieve sustainable competitive advantage in their
export processes, as this will help them improve their firms’ export performance.
The rest of the paper is structured in the following order: first, the study provides a review
of theory underpinning the study which leads to model and hypotheses development. Next,
the research methodology is presented, followed by the findings. Finally, discussion,
conclusions as well as the implications, contributions, limitations and future research
276 directions are presented.
Methodology
Research design, sample and procedure
In testing the hypothesized relationships, we employed a quantitative approach using self-
administered questionnaires to collect data from the exporting firms. The questionnaire was
Social media
and export
x Trust (a) performance
x Commitment (b)
H4 (a-b)
H1 H6 (a-b)
H5 (a-b) 281
H3
Social Media H2 Markeng
Resources Capabilies Export Performance
Firm size
Social media page Figure 1.
Number of years Research model
separated into Section A and Section B. Section A constituted the background information of
the exporting firms (firm size, type of social media platform they own, number of years of
being in business, industry/sector), and Section B looked at the measures on social media
resources, marketing capabilities (relational and informational capabilities), trust and
commitment and export performance. With the exception of Section A, which dealt with the
profile of the exporting firms, all other variables in Section B were examined using five-point
Likert scales which ranged from “1 5 strongly disagree” to “5 5 strongly agree.” Section B
contained statements on social media resources as well as export performance, which were
adapted from Gregory et al. (2017) and measured with four and eight items, respectively; the
relational capability variable was measured with five items and informational capabilities
five items, and both were from Pham et al. (2017) and Kaleka and Morgan (2017), respectively;
finally, trust had three items and commitment four items, and both were also adapted from
Bloemer et al. (2013). To establish face and content validity, the initial scales were pre-tested
using three international marketing faculty members of the Department of Marketing and
Entrepreneurship, University of Ghana, two managers from export firms in Ghana and eight
doctoral students from the University of Ghana to ensure the suitability of the survey
questions (Saunders et al., 2009). Based on the feedback received, several changes were
incorporated into the instrument to improve clarity.
Control variables
The study incorporated three controls to guarantee that the results were not unduly affected.
The study controlled for the age of the firm, the social media platform the firms were using
and firm size. The firm size was determined by the number of employees that are likely to
influence export performance (Wolff and Pett, 2000). The study adopted the categorization by
United Nations Industrial Development Organisation (UNIDO) for least developed economies
(Abor and Quartey, 2010). The age of the business is linked to the number of years the
exporting firms have been in operation (Lages and Jap, 2002).
IMR 0.66
37,2 e1 Eperf3
0.75 0.81
e2 Eperf4 0.76 0.87
0.49 0.87
-0.25 e3 Eperf5 0.80 Experf
0.89
e4 Eperf6 0.67
0.45
282 Eperf7
e5
0.66
0.64
e6 Trst5
0.74
0.80
e7 Trst1 0.86
0.70
0.84
e8 Trst2 Trut 0.52
0.71 0.85
e9 Trst3 0.72
0.52
e10 Trst4
0.60 0.27
0.56
e11 ReCap1
0.57 0.75
e12 ReCap2 0.75
0.66 0.81 0.75
e13 ReCap3 Rcap 0.49
0.57 0.75
e14 ReCap4 0.78 0.50
0.61
e15 ReCap5
0.78
0.58
0.59
e16 InCap1 0.43
0.65 0.77
e17 InCap2 0.81
0.56 0.60
0.75
e18 InCap3 Incapa
0.80
0.64 0.67
e20 InCap5
0.43
0.75
e21 Com1 0.86
0.75 0.61
0.87
e22 Com2 comm
0.79 0.89
e23 Com3
0.57
0.59
Figure 2.
e24 SMR2 0.77
Final 0.59
measurement model 0.77 SoMR
e25 SMR3
Our company has a very long association with the foreign Trst5 3.72 1.01 0.07
customers we transact business with
Export performance
286 The adoption of social media has enabled us to offer lower cost Eperf1 4.16 0.55 0.04
channels for transacting with customers
The adoption of social media has enabled us to maintain Eperf2 3.75 0.72 0.05
relationships with overseas customers
The adoption of social media has enabled us to exploit new sources Eperf3 3.69 0.77 0.05
of revenue
The adoption of social media has enabled us to reduce our operating Eperf4 3.69 0.81 0.05
cost
The adoption of social media has enabled us to offer new services to Eperf5 3.71 0.82 0.06
our existing customers
The adoption of social media has enabled us to develop stronger Eperf6 3.85 0.79 0.05
relationships with suppliers and customers
The adoption of social media has enabled us to access new Eperf7 4.48 0.55 0.04
international markets
The adoption of social media has enabled us to introduce new Eperf8 4.33 0.62 0.04
Table 1. products/services to the international market quickly
CR AVE 1 2 3 4 5 6
288
Table 5.
direct paths
Structural model
Hypotheses Structural paths B estimate T-value p-value R2 Results
H1 Social media resources→ Export performance 0.427 7.06 *** 0.18 Supported
H2 Social media resources → Marketing capabilities 0.594 11.05 *** 0.35 Supported
H3 Marketing capabilities → Export performance 0.418 6.95 *** 0.19 Supported
2
χ /df 5 1.44 NFI 5 0.93 IFI 5 0.96 TLI 5 0.96 CFI 5 0.97 RMSEA 5 0.05
Note(s): ***p ≤ 0.001 H: Hypotheses
Direct
Social media
without Direct with Indirect and export
H Relationships mediator mediator effect Results Outcome performance
H4a Social media resources 0.427 (***) 0.239 (0.006) 0.184 (0.011) Partial Supported
→ Trust→ Export
performance
H4b Social media resources 0.427 (***) 0.132 (0.040) 0.290 (0.041) Partial Supported 289
→ Commitment→
Export performance
H5a Marketing capabilities→ 0.418 (***) 0.108 (0.109) 0.305 (0.001) Full Supported
Trust→ Export
performance
H5b Marketing capabilities→ 0.418 (***) 0.081 (0.231) 0.338 (0.002) Full Supported
Commitment→ Export mediation
performance
H6a Trust→ Export 0.237 (***) Supported
performance
H6b Commitment → Export 0.480 (***) Supported Table 6.
performance Results of mediation
Note(s): R2 5 0.45; ***p ≤ 0.001 H: hypotheses analysis
international market growth opportunities. The effect is attributed to the fact that social
media tools offer enhanced communication with customers and lessen or remove physical
distances.
The results for H2 also indicate a positive significant relationship between social media
resources and marketing capabilities (informational and relational capabilities). This finding
is similar to the results of previous studies (Trainor et al., 2014). This implies that when firms
view social media as a resource, it impacts customer relationship outcomes significantly
through firms’ capabilities. Additionally, the study revealed in H3 a positive significant
relationship between marketing capabilities and export performance. This finding confirms
the results of previous studies (Pham et al., 2017; Konwar et al., 2017). For example, Pham et al.
(2017) found that an organization’s relational capabilities strengthened the efficiency of
pricing and communication capabilities on export performance. Similarly, Kaleka (2011)
found informational capabilities to positively impact the performance of export firms.
However, this finding disconfirms De Carolis (2003), who found that marketing capabilities
do not have a significant impact on firm performance.
For H4(a–b), we found that trust and commitment partially mediated the relationship
between social media resources and export performance, as both the direct and indirect paths
were found to be significant. This result reiterates the fact that the mere possession of
resources does not necessarily guarantee superior or enhanced export performance. This
finding is consistent with Trainor et al. (2014), who argue that the mere adoption of a
technology will not necessarily translate into enhanced competitive advantage. Furthermore,
this study points to the fact that trust and commitment are key to achieving superior export
performance. In addition, the study confirms the commitment trust model of relationship
marketing, as indicated by Morgan and Hunt (1994), who assert that commitment and trust
are key mediating variables of relationship outcomes. The partial mediation effect of trust
and commitment on social media resources and export performance implies that although
social media resources alone can influence export performance, the relationship is enhanced
when there is trust and commitment.
The results for H5(a–b) indicate that commitment and trust fully mediated the marketing
capabilities and export performance relationship. This finding underscores the salience of
IMR trust and commitment in the marketing capabilities-export performance relationship, since
37,2 without trust and commitment, the marketing capabilities that the exporting firms possess
will not generate the desired export outcomes. Thus, the effective implementation of export
marketing strategies to enhance a firm’s performance necessitates the need for both trust and
commitment.
Finally, in H6(a–b), we found a direct significant relationship between trust and export
performance as well as commitment and export performance. The results of this study are
290 consistent with previous studies. For example, Navarro et al. (2010) aver that firms that are
more committed to their foreign markets are more willing to adapt elements of their
marketing strategies that enable them to perform relatively better in foreign markets.
In conclusion, extant literature indicates that investments in social media resources have
become a usual practice in exporting firms, and they are necessary for boosting export
performance; however, these studies offer minimal insights on how such resources translate
into improved export performance. In particular, the study concludes that adopting social
media directly influences export performance. The results have also shown that social media
influences an organization’s ability to develop and improve upon their relational and
informational capabilities. These capabilities can only influence export performance through
the commitment and trust of export firms and gaining commitment of clients. The study has
also indicated that trust and commitment were key mediating variables between social media
resources and export performance. The study has also highlighted how building trusting
relationships can positively influence the effect of marketing capabilities on export
performance. Our overall results support the resource-capability-performance nexus and
demonstrate how it can be extended to marketing activities which deal with applying
technologies in exporting.
These findings indicate that the use of social media as a strategic tool in boosting the
performance of firms in international markets seems to be ubiquitous among SMEs in
emerging markets such as Ghana too. Though past research suggests SMEs in emerging
markets seldom utilize Internet-based technologies in their commercial activities (Abou-
Shouk et al., 2013), these results depict social media resources are used to supplement
marketing activities of these firms. In recent times, Internet penetration and smart technology
adoption are becoming widespread globally; hence, it is necessary for exporting ventures in
emerging markets like Ghana to use unconventional means to reach their customers. Since
exporting SMEs in Ghana do not have sufficient resources to compete favorably in foreign
markets, the emergence of social media presents unique opportunities tothem to develop and
maintain relationships and enhance interactions with customers in foreign markets at
minimum cost; this enhances their performance.
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Corresponding author
Mahmoud Abdulai Mahmoud can be contacted at: [email protected]
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