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The purpose of this study is to investigate the relationship between social media and sensing capability for supply chain management (SCM) from an environmental scanning perspective. The authors consider upstream supply and downstream customer markets as two aspects of social media-enabled environmental scanning (SMES). The moderating effects of three uncertainties are explored.

The data were collected from 178 supply chain professionals through a survey. Generalized estimating equations (GEE) were used to analyze the data.

SMES in both supply and customer markets enhance sensing capability. Interestingly, the results reveal an accelerating effect on sensing by the incremental effort of SMES-supply. However, that of SMES-customer leads to a decelerating outcome for sensing. Also, uncertainties, especially the demand- and technology-related, play a series of interacting effects according to SMES levels.

This research contributes to the literature of operations and supply chains regarding social media strategies and dynamic capabilities. It opens the black box of environmental scanning behavior on social media and adds new knowledge on the dynamic influence of such behavior toward organizational sensing capability for SCM. In addition, further understanding on supply chain uncertainty as a moderator is also strengthened through this research.

This research is the first to empirically uncover the effect of social media on sensing capability for SCM through the lens of environmental scanning. The results support the employment of social networking for improving supply and demand sensing.

Most of the research on collaborative consumption platforms (CCPs) has focused on motivational drives, and little research has been conducted on the problem of unbalanced information sharing, also known as the “lemons problem,” and signals. The paper aims to discuss these issues.

This study conducted a netnography and an experiment.

The netnographic study showed that participants tend to use low ratings and negative reviews as cues implying more searches, use ratings as an anchor to adjust other information, and employ differing cognitive information-processing styles. The experimental results show that, in a normal environment (when ratings are high), visualizers (verbalizers) have more of an intention to use CCPs when they are exposed to abundant pictures (textual cues); however, when the cues lead to a further information search (when the ratings are low), this search behavior pattern is reversed: visualizers (verbalizers) have more of an intention to use CCPs when they are exposed to abundant textual cues (pictures).

This study extends previous research by showing that people frequently use differing heuristics depending on the context; that ratings have an anchoring effect and guide people in selecting a signal to use and condition how they use it; and that visualizers prefer text cues to pictorial cues when trying to make informed decisions under a condition that points to a further information search. These results are opposite of previous assertion.

Marketers are advised to provide a mechanism by which users can extract the cues they need and reduce the less urgent ones; devise a mechanism that screens participants and divides them into two categories: those who post honest evaluations and those who do not; and reduce the opportunistic behaviors of partners on both sides.

The current study addresses consumers’ use of information posted by other consumers on CCPs and demonstrates that participants use low ratings and negative reviews as cues implying more searches, use ratings as an anchor to adjust other information, and employ differing cognitive information-processing styles. Previous research rarely addressed these information search behaviors of consumers on CCPs.