Social media usage and sustainable performance in manufacturing supply chains: exploring dynamic capabilities

Abstract

Due to the global impact of COVID-19, businesses and supply chains worldwide have been disrupted, leading to challenges for manufacturing firms and customers. Social media usage (SMU) is a vital and valuable tool that builds customer-centric supply chains by effectively communicating large volumes of valuable data. This study examines the influence of social media usage on the development of dynamic capabilities, including supply chain sensing capabilities (SCSC), knowledge sharing capability (KSC), and social capital (SC), which are crucial for constructing agile and resilient supply chains that can effectively respond to dynamic and turbulent environments, ultimately enhancing sustainable business performance. To assess the proposed investigation model, data was gathered through a structured questionnaire administered to supply chain members currently engaged with manufacturing firms. The evaluation of the proposed hypotheses is carried out through the application of structural equation modeling (SEM). The results of this study offer empirical evidence supporting the proposition that SMU within manufacturing firms promotes the development of sensing capabilities, knowledge-sharing capability, and social capital. Furthermore, this study tests the moderation role of environmental dynamism in the relationship between social media use and sustainable business performance. This underscores the pivotal role played by SMU in facilitating the adaptation and responsiveness of the supply chain to dynamic and uncertain environments, thereby contributing to the long-term sustainability and competitiveness of organizations.