Process Level Social Media Business Value Configuration of SMEs in Saudi Arabia

The key enabler of strategic design based on IT is process level value; however, few researchers have tackled the mechanisms through which small and medium-sized enterprises (SMEs) can create value at the process level. This study sheds light on the mechanism of creating social media business value at the process level by identifying the interaction effects of social media and IT resources and the mediating role of management’s commitment to innovation as an organizational factor. The research model is based on the IT business value approach, quantitative and descriptive methodology is adopted, and the data are analyzed using structural equation modeling. Among the findings based on 301 SMEs in the Kingdom of Saudi Arabia, that management’s commitment to innovation is a necessary condition for social media resources to create dynamic capabilities, and the interaction effects between social media resources and IT resources on social media capability have no impact on the value-generation process at the process level. The result improves the understanding of the theoretical implications of social media business value at the process level, which can be used to guide theorizing about IT business value. SME managers, IT designers, and national decision-makers can use the findings to gain strategic advantage through social media platforms. © 2020. All Rights Reserved.