Explaining Market Share of Knowledge-Based Firms through Social Media Use with the Mediating Role of Market Penetration Strategy and Customer Relationship Management

Document Type : Original Article

Authors

Ph.D. Student of Business Management, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran.

Abstract

Aim and Introduction: With the digitalization of marketing activities, marketing professionals are increasingly using social media as a strategic tool for effective interaction with customers and stakeholders. Experience shows that firms should have a social media presence for their activities. The strategic use of social media can be increasingly effective in enhancing the firm's competitiveness, creating a convenient and cost-effective user experience, and improving custom-er well-being. On the other hand, the potential benefits of social media technolo-gies are evident in business markets, where customers are more informed. Grow-ing evidence also indicates that social media can be strategically utilized to en-hance communication with customers, increase customer retention, and improve firm performance in comparison to competitors. Accordingly, social media use is a very good predictor of improved communication and performance develop-ment. With the changes and developments in the digital space and the accelera-tion of activities, most firms have turned to social media to enhance their market share. Based on this, the aim of this study is to investigate the mediating role of market penetration strategy and customer relationship management in the relationship between social media use and market share of knowledge-based firms.
Methodology: This research is a quantitative study, which is considered an ap-plied study due to its nature and results. The statistical population of this re-search includes knowledge-based firms active in the fields of information tech-nology, communication, and computer software in Iran. The number of these firms in the country is equal to 1891 companies, according to the statistics from the Vice-Chancellor for the Development of Knowledge-Based Companies. The data collection for this article was conducted using a questionnaire with a 5-level Likert scale among the statistical population. It should be noted that managing directors and senior managers of firms, who have greater control over firm poli-cies, were selected to complete the research questionnaire. Also, to ensure the re-liability of the research questionnaire, validity and reliability processes were scrutinized. Necessary corrections were made based on expert opinions, and the reliability of the variables was confirmed and reported. In this study, a stratified random sampling method was used to select participants from the population under study. Cochran's formula was employed to estimate the sample size based on the total population. Also, by collecting 218 data points from the statistical population, an analysis was conducted on the research subject. Several hypotheses were presented to establish the relationship between variables, which were analyzed using structural equation modeling and SPSS and Amos tools.
Finding: The outputs show that social media use has a positive effect on the market penetration strategy. Furthermore, social media use has a positive impact on customer relationship management. On the other hand, social media use has a direct and significant impact on the market share of knowledge-based firms. Another finding of the study is related to the mediating role of penetration strategy in the market. The results show that the market penetration strategy mediates the relationship between social media use and the market share of knowledge-based firms. Finally, the results indicate that the mediating role of customer relationship management in the relationship between social media use and market share of knowledge-based firms is significant.
Discussion and Conclusion: Nowadays, with the advent of the digital space, en-tering different markets has become easier for all types of firms. It is now possi-ble to reach numerous customers in various locations at a low cost and in a short amount of time. On the other hand, for firms to ensure their survival in these complex conditions, they must secure a significant portion of resources and cus-tomers within their industry. This will enable them to attain a substantial market share and sustain their operations. Based on this, the present study utilized stra-tegic social media use to enhance the market share of knowledge-based firms. On the other hand, in order to recognize this significance, we utilized market in-fluence variables and customer relationship management to accomplish this ob-jective in the relationship between independent and dependent variables, a con-nection that had not been acknowledged by researchers in prior studies. There-fore, the aim of the present study was to examine the mediating role of market penetration and customer relationship management in the relationship between social media use and the market share of knowledge-based firms active in the field of information technology, communications, and computer software. For this reason, the contribution of this study is significant in expanding the existing literature on the subject and introducing a new model that aligns with the re-search variables and the target population. The results showed that the mediating role of market penetration strategy is significant. In this regard, it can be stated that knowledge-based firms can implement their market penetration strategy by investing in social media platforms and activities to achieve the desired market share. Therefore, knowledge-based firms operating in the information technology, communication, and computer software sectors can tailor their market penetration strategy for social media to secure a substantial market share. On the other hand, the present study showed that customer relationship management is a mediating variable in the relationship between social media use and the market share of knowledge-based firms active in the field of information technologies, communications, and computer software. This finding shows that improving market share through the implementation of a social media strategy is not achieved directly; it requires enhancing the capabilities of managing customer relationships in the social media space. Based on this, managers of these firms should prepare their employees for online and digital environments, strengthen their capabilities, and enhance their skills in online communication with customers. Finally, based on the results, this research has provided practical suggestions for the statistical community.

Keywords

References

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Commercial Strategies
Volume 19, Issue 20
September 2022
Pages 171-194

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