Performance implications of match between social media–enabled interactions and contracts in interfirm governance
Abstract
Purpose
Integrating transaction costs economics and task-technology fit theory, this study distinguishes two categories of social media–enabled interactions, namely task-related interactions and tie-related interactions, and explores the match between these two and firms' use of contracts in achieving safeguarding and coordinating purposes in interfirm governance.
Design/methodology/approach
Two studies were conducted to test the hypotheses. In Study 1, this study collaborated with a professional market research firm and collected responses from Chinese manufacturing firms in a survey. In Study 2, this study designed a scenario-based experiment and collected 239 participants from the Credamo platform.
Findings
This study categorized social media–enabled interactions into task-related interactions and tie-related interactions and conducted two studies to reveal that the safeguarding purpose of contract specificity is amplified by tie-related interactions, whereas the coordinating purpose of contract specificity is strengthened by task-related interactions.
Research limitations/implications
This study assumes that firms permit and encourage the use of social media. However, some firms might prohibit the use of social media due to risk issues, or their partners may be prohibited from using social media.
Practical implications
Given that social media–enabled interactions have joint effects with contracts in achieving safeguarding and coordinating purposes, a firm's employees should match their goals with an appropriate type of social media–enabled interactions.
Originality/value
This study enriches the interfirm governance literature by uncovering the roles of these two types of interactions in matching contract specificity to achieve safeguarding and coordinating purposes, which provides actionable insights for managers in governing interfirm relationships.
Keywords
Acknowledgements
Since submission of this article, the following author(s) have updated their affiliation(s): Jinjun Yu is at the School of Business Administration, South China University of Technology, Guangdong, China.
This study is based on the authors’ conference paper “The Fit Between Social Media Use and Functions of Contracts: A Contingent Perspective” presented at the 2020 80th Academy of Management (AOM) conference authored by Feng, C., Fan, Y., Zheng, X. and Chen, H. (2020).
Funding: This work was supported by the National Natural Science Foundation of China (72102107), Fundamental Research Funds for the Central Universities (No. NR2021006), Talent Research Start-up Foundation of Nanjing University of Aeronautics and Astronautics (1009-YAH21065), Talent Research Start-up Foundation of Nanjing Normal University (184080H202A169), Basic Research Ability Enhancement Project for Young- and Middle-aged Teachers of Guangxi (No. 2022KY0648), and Guangxi First-class Discipline statistics Construction Project Fund (No. 2022TJZD01).
Citation
Feng, C., Yu, J., Fan, Y. and Chen, H. (2023), "Performance implications of match between social media–enabled interactions and contracts in interfirm governance", Internet Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/INTR-10-2022-0844
Publisher
:Emerald Publishing Limited
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