The role of absorptive capacity and organizational unlearning in the link between social media and service dominant orientation

Abstract

Purpose – This paper aims to study the relationship between the knowledge obtained in social networks by firms together with the firms’ knowledge absorptive capacity and organizational unlearning as influencers of service-dominant (S-D) orientation, as well as the mediating role of absorption capacity and organizational unlearning in this process. Design/methodology/approach – The sample amounts to 101 responding companies, obtained from the SABI database. The companies belong to the service sector in Spain and have at least 50 employees and 5 years or more of existence in the market. The model was estimated through partial least squares structural equation modeling with smartPLS software 3.2.6. Findings – The results show that the use of social media is very important for firms to acquire knowledge and capabilities that help them to become S-D oriented. In addition, absorptive capacity and unlearning processes are dynamic capabilities necessary to transform the knowledge acquired in social media and to become S-D oriented. Research limitations/implications – Companies’ managers draw conclusions that can generate great value, while better meeting the needs and desires of the market, the more knowledge is obtained. In addition, the use of the knowledge generated in this process will reduce the risk of sudden changes in the market. Practical implications – The more knowledge is gained using social networks, the better the companies’ managers will be able to draw conclusions that can generate great value, while at the same time better satisfying the needs and desires of the market, and thus create capacities that allow the company to be service-oriented. In addition, the use of these knowledge platforms strengthens the strategic advantage of companies through the promotion of innovation and by relating dynamic capabilities with the orientation toward sustainable development. As mentioned above, a process will be generated that will reduce the risk of sudden changes in the market. Originality/value – This is one of the few studies trying to study the antecedents of S-D orientation and the first to study the direct effect of social media use, and the direct and indirect effect of absorptive capacity and organizational unlearning on S-D orientation as dynamic capabilities.