We examine the role of firm‐initiated social media communication using Twitter in mitigating the negative impact of large‐scale disruptions, such as the Covid‐19 pandemic, on the shareholder value of firms. We develop our hypotheses using signaling theory and test them using data collected from Twitter and Bloomberg®. Our data set consists of 121,988 firm‐generated tweets from 467 S&P 500 firms collected in March 2020 at the time of the lockdown announcement in the United States. We find that frequent and relevant communication reduces latency and increases the observability of messages, preserving a firm's shareholder value. We also find that a positive outlook and extent of interest from stakeholders results in preserving shareholder value. On average, firms lost about 1.08% of their market value per day (about 9.72% during the 9‐day period around the lockdown announcement). Our study contributes to the extant literature in three ways: (1) adds to the literature on disruptions–shareholder value by considering large‐scale disruptions such as the Covid‐19 pandemic, (2) highlights informational and communication elements of risk management strategy, and (3) adds to the growing body of literature on Twitter by considering firm‐generated tweets. The results of our study are of importance to managers as well. For instance, firms tweeted about 57 times per week, and each additional tweet could preserve about $5.85 million of a firm's market valuation, on average. Also, it is not enough that the firms took appropriate actions during a large‐scale disruption; they also need to communicate their actions and its implications to their stakeholders effectively. These results can help managers devise their Twitter communication strategy during large‐scale disruptions.

No abstract

No abstract

Purpose Firms are increasingly making customers key stakeholders in their greening processes, requiring them to voluntarily use their resources to benefit the firm. In this context, this paper develops a new construct – tangible customer citizenship behaviour (CCB), i.e. voluntary participation of customer in operational processes of the company beyond normal requirements of exchange. This requires more involvement than the already documented intangible CCB. The purpose of the paper is to then explore whether service quality (SQ) (online and offline) influences such voluntary customer reciprocity in greening. Design/methodology/approach This study used a virtual survey among 400 customers of e-commerce firms that have adopted greening practices requiring customer engagement and regressions were used to test the hypotheses. Findings The authors find that both online and offline SQ positively impact intangible CCB but have no impact on customer greening reciprocity (tangible CCB). Additionally, the authors find that offline SQ positively impacts customer greening awareness. However, in spite of the presence of greening awareness and display of intangible CCB, SQ does not have any impact on greening reciprocity. Originality/value This study introduces to literature a more tangible form of voluntary behaviour on the part of the customer, i.e. tangible CCB or reciprocity. To the best of the authors’ knowledge, it is also one of the first to study the customer as an important stakeholder and participant in a business-to-consumer firm’s operating processes, particularly in greening which has no direct impact on the firm’s core offering. The focus on greening in the Indian context is also novel given the greening costs and requirements and the price competition are very different in emerging market contexts where e-commerce firms are experiencing the maximum growth.

Social media communication, and its impact on individuals and firms, is becoming increasingly important in today’s age. Firms are utilizing social media channels for communicating their sustainability-related initiatives. The role of social media as a mode for sustainability-related communication by firms has not been widely analyzed in the extant information systems literature. Given the increasingly important role of social media for information diffusion as well as increasing awareness for sustainability practices, this is a critical area of research. In this paper, we use an analytic model to theorize, coupled with empirical analysis to test the impact of firms’ sustainability practices. We have validated our proposed hypotheses using an empirical model based on panel data of firms’ sustainability performance and their Twitter communication over a 3-year period. Through our unique mixed-method study, we add additional methodological rigour to extant social media-based research in the information systems domain. Our research has significant theoretical and managerial significance as we identify how firms utilize social media for sustainability-related communication and its corresponding impact on customer response. Our research provides actionable insights for policymakers, firms as well as investors and consumers on understanding and managing sustainability-related communications on social media.