Impact of Social Media Usage on Organizational Performance in the Jordanian Dead Sea Cosmetic Sector

Abstract

Due to the current debate on the positives and negatives of social media, most of the organizations are in an unclear state regarding the adoption of social media. Therefore, the purpose of this paper is to extend previous research on social media use comprising three variables: social media for marketing, social media for customer’s relations and services, and social media for information accessibility and its impact on organizational performance in terms of rapid adaptation, time to market, cost reduction, and innovation in Jordan. The paper analyzed data obtained from a sample of 169 managers working at 23 different organizations in Dead Sea cosmetic sector in Jordan using a quantitative approach. Structural equation modelling used to test the hypotheses. Results showed that there is a strong positive impact of implementing and using social media on organizational performance in terms of rapid adaptation, cost reduction, and innovation. Also, social media usage is different among the companies’ characteristics in terms of type, age, and size. This paper offers a clearer understanding of the importance of social media and its benefits. Also, this paper is one of the first studies conducted in Jordan and especially within the Dead Sea cosmetic sector by demonstrating the different areas of organizational performance that can be enhanced by using social media in different ways.

Keywords: Social media, social media marketing, customer relations, organizational performance, rapid adaptation, cost reduction, time to market, innovation, Dead Sea cosmetic, Jordan.

DOI: 10.7176/EJBM/11-2-09