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Understanding the role of social media and dynamic capabilities in innovation performance in AgTech: a serial mediation model

Cristian Rogério Foguesatto (Business School, Federal University of Rio Grande do Sul, Porto Alegre, Brazil)
Alsones Balestrin (Rio Verde University, Rio Verde, Brazil)
Bibiana Volkmer Martins (Business School, Unisinos, Porto Alegre, Brazil)
Anderson Betti Frare (Department of Accounting, Federal University of Santa Maria, Santa Maria, Brazil)

Journal of Small Business and Enterprise Development

ISSN: 1462-6004

Article publication date: 3 July 2024

Issue publication date: 9 October 2024

225

Abstract

Purpose

We developed and tested a theoretical model that measures the importance of social media and dynamic capabilities with regard to improving innovation performance in startups from the agribusiness sector (AgTech), that is, technology-based companies with scalability potential that operate in the agribusiness sector.

Design/methodology/approach

This model analyzed three dynamic capabilities: internal collaboration capacity, absorptive capacity, and organizational agility. To test this theoretical model, we employed structural equation modeling with partial least squares estimation (PLS-SEM) analyzing 237 AgTech in Brazil.

Findings

Our results show that the use of social media positively affects innovation performance and contributes to internal collaboration capability (a second-order construct that encompasses commitment, communication, and trust). Internal collaboration is an antecedent of absorptive capacity and organizational agility. These two dynamic capabilities positively impact innovation performance. Our results also indicate that these dynamic capabilities serially mediate the relationship between social media and innovation performance.

Practical implications

While some literature describes the dark side of social media, our study sheds light on the importance of these platforms to improve internal collaboration in AgTech, a pivotal capability that is necessary to develop other relevant capabilities.

Originality/value

This study presents results from one of most large AgTech survey found in literature. Furthermore, this study also shows that there are dynamic capabilities essential to develop others relevant dynamic capabilities, indicating that innovation performance involves a sequential integration of capabilities.

Keywords

Citation

Foguesatto, C.R., Balestrin, A., Martins, B.V. and Frare, A.B. (2024), "Understanding the role of social media and dynamic capabilities in innovation performance in AgTech: a serial mediation model", Journal of Small Business and Enterprise Development, Vol. 31 No. 6, pp. 1225-1248. https://doi.org/10.1108/JSBED-12-2023-0574

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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