Abstract

Previous studies have addressed social media adoption in business-to-business (B2B) contexts, but limited research has focused on understanding social media marketing assimilation in the B2B context. Using an integrative model, this study examines how top management participation influences the assimilation of social media in the key marketing areas of product development, pricing decision-making, channel management, and promotion. Furthermore, it examines the resulting impact of these assimilations on B2B firms’ performance, particularly in respect of sales performance and relationship development. The study also examines the moderating impact of absorptive capacity on top management participation in the assimilation processes. The findings reveal that top management participation strongly influences social media assimilation into marketing functions. However, the impact of social media assimilation on B2B firms’ performance is varied. While assimilation for channel management positively impacts both sales performance and relationship development, assimilation for product development is only positively related to relationship development. Conversely, assimilation into the functions of pricing decisions and promotion activities shows no significant impact on either sales performance or relationship development. Finally, absorptive capacity positively moderates top management participation in social media assimilation into all key marketing functions except one. The theoretical and managerial implications of these findings are discussed.

Introduction

Social media have emerged as a “game-changer” (Kumar, 2015, p. 5), playing a leading role in the revolutions taking place in business-to-consumer (B2C) and business-to-business (B2B) marketing. B2C marketing uses social media marketing widely, and B2B operations have begun embracing it to streamline their internal marketing communication, generate leads, drive sales, and strengthen customer relationships. Chaffey (2018) found that 79% of B2B marketing specialists rated social media as the most effective marketing channel, with a further 38% indicating that, if they had surplus in their budget for marketing in the following year, they would devote it to social media marketing. Similarly, Elevation Marketing (2020) noted that 90% of B2B buyers use social media to engage with industry thought leaders, with a further 72% indicating that they use social media channels to research solutions.

B2B social media research tracks the increase in social media use in this business interface. Previous studies have addressed several aspects of social media use in the context of B2B, including salespersons’ social media use in B2B relationships (Bill, Feurer, & Klarmann, 2020; Bowen, Lai-Bennejean, Haas, & Rangarajan, 2021; Fraccastoro, Gabrielsson, & Pullins, 2021), B2B social media adoption (Dwivedi, Ismagilova, Rana, & Raman, 2021; Lashgari, Sutton-Brady, Søilen, & Ulfvengren, 2018; Siamagka, Christodoulides, Michaelidou, & Valvi, 2015; Veldeman, Van Praet, & Mechant, 2017), and B2B social media marketing and branding (Brennan & Croft, 2012; Juntunen, Ismagilova, & Oikarinen, 2020). In addition, social media in B2B entails several unexplored issues worth investigating. Although previous studies have addressed social media adoption in a B2B context, the current body of research shows an observable dearth of producing a nuanced understanding of the factors underlying the assimilation of social media in firms’ marketing functions and how they improve their marketing performance. The assimilation phase occurs after the initial implementation of the innovation. It involves the ongoing integration and use of innovation in the firm’s day-to-day operations. In the context of social media marketing, this phase focuses on leveraging social media platforms to support the attainment of the marketing strategy related to product development, pricing decision-making, channel management, and promotion activities, and on realising the anticipated benefits.

Conclusion

In many instances, technological innovations are introduced into firms with great enthusiasm, which may be occasioned by widespread initial acquisition. Nevertheless, these innovations may fail to be completely deployed in the operations of the acquiring firms. Research has shown that, unless innovations are assimilated, firms do not benefit fully from them. Social media are one innovation that B2B firms are adopting for their marketing activities. While social media adoption in B2B firms has received some research attention, a limited number of studies have focused on social media marketing assimilation in B2B firms, the conditions that enhance this assimilation, and how the assimilation contributes to firms’ performance. In this study we examined how top management participation influences the assimilation of social media in the key marketing functional areas of product development, pricing decision-making, channel management, and promotion activities. We also examined how the existing absorptive capacity of B2B firms moderates the influence of top management participation on the assimilation of social media in the key marketing functional areas. Finally, we analysed how social media marketing assimilation into these marketing functional areas improves a firm’s performance outcomes of sales and relationship development. The study’s results show that top management participation in the social media marketing assimilation processes has a strong and positive impact on the assimilation of social media for key marketing functional areas, namely product development decisions, pricing decision-making, channel management, and promotion activities. Furthermore, the findings indicate that top management participation in the assimilation of social media in the functional areas, except in the case of promotion activities, is positively moderated by the existing absorptive capacity of the firm. The results also show that social media marketing assimilation for product development has a significant impact on sales performance, while its assimilation for channel management has a significant impact on both sales performance and relationship development.